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DEBT MANAGEMENT

Extrajudicial-Mechanism

EXTRAJUDICIAL
DEBT SETTLEMENT

MECHANISM

What is the Extrajudicial Mechanism?

The Extrajudicial Debt Settlement Mechanism is a comprehensive process that provides specific facilities to debtors, aiming at the sustainable management and repayment of their debts.

The main aspects of the mechanism
and the reasons for choice:

  • Broad Coverage: Addressed to individuals, businesses and other legal entities that have accumulated debts to the State, banks and other entities.

  • Restructuring Process: Vulnerable debtors receive automatic acceptance of the restructuring proposal, provided they meet the criteria.

  • Debt Reduction: Offers a reduction of up to 28% of debts and a fixed interest rate of 3% for the first 36 installments.

  • Suspension of Enforcement Measures: Procedures such as auctions and seizures are suspended, as long as the regulation is complied with.

  • Installment Arrangements: Up to 240 installments are provided for debts to the State and up to 420 installments for financial debts.

What are the advantages for me?

  • Suspension of Executive Measures: Protection from auctions and seizures.

  • Tax and Insurance Notifications: Proof of notification for tax and insurance obligations is issued.

  • Realistic Installment Durations: Debt settlement in long-term plans, flexibility in repayment.

  • Debt Reduction or Cancellation: Significant discounts on principal debts, interest, and fines.

What is the Code of Conduct?

The Code of Conduct defines a national framework that regulates the relationship between lenders and borrowers with the aim of resolving disputes over loans out of court.

Who is eligible?

  • The Code applies to natural persons and legal entities that have received loans.

  • It covers many types of loans such as consumer, mortgage, and credit cards .

  • Businesses and freelancers also join with the aim of resolving financial disputes.

Why join?

  • Inclusion helps with transparency and fair loan management .

  • It ensures equal treatment of borrowers and protects their rights.

  • It helps borrowers find sustainable solutions for their debts.

Code-of-Conduct

CODE
OF CONDUCT

Bank-Mediation

BANKING
MEDIATION

What is Mediation?

Mediation is an approach to resolving disputes with the help of a neutral mediator.

In more detail:

  • A mediator helps the disputing parties reach an agreement.

  • It is a voluntary and confidential procedural method.

  • It focuses on resolving disputes between consumers and financial institutions.

  • Includes differences in bank fees, loan terms, etc.

How does it work?

  • The mediator facilitates dialogue and helps to understand opposing points of view.

  • The parties are working together to find a mutually acceptable solution .

Who does it concern?

  • It concerns those involved in disputes that may involve consumers, businesses, and other economic entities .

  • It is suitable for citizens, businesses, and freelancers who have disputes with banking or other financial services.

What are the advantages?

  • Promotes peaceful and creative resolution of disputes.

  • It provides a faster and less expensive alternative to the courts.

  • Helps maintain or restore relationships.

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