2024-04-15 13:09:26
Several borrowers in the area are currently “protected” by the abstention of the lawyers of Ioannina for about six months, who are at risk of losing their homes and businesses in auctions, since the out-of-court mechanism does not seem to be working as well as it should.
The out-of-court mechanism proceeds in cases where debtors owe the public and insurance funds, however the reluctance of banks and funds to compromise means that thousands of borrowers remain without protection.
“We are in the worst phase regarding the auctions, because the funds themselves are putting obstacles in the way of reaching any agreement for the settlement of all loans”, noted the lawyer and mediator Haris Lazanis, stressing that in cases of debts to banks there are huge delays, which means that the legal proceedings (such as payment orders, seizures and auctions) are running at the same time, with the result that the borrower has no protection, beyond the two months of protection imposed by law after the finalization of the out-of-court settlement application.
The exception is the vulnerable borrowers – to whom the banks are obliged to make a compromise proposal – who are, however, extremely few due to the criteria that have been set.
“The income criteria are very low. A person with a house and income of up to 7,000 euros is considered vulnerable, while with 7,100 euros he is not,” noted Mr. Lazanis, adding that in recent years the cost of living has brought significant changes to the middle class. “Substantial changes must be made in relation to what the debtor lives in his daily life”, he noted and added that the increase in auctions is reflected in the numbers, nationwide as well as locally.
The difference is that in Ioannina there is a stagnation, due to the mobilizations of the Bar Association of Ioannina. The lawyers of the city have been abstaining for months from the issuance of Payment Orders and acts of forced execution of banks and funds, as well as from lawsuits of interests of banks and funds, with the abstention continuing at least until the 8th of the month. Besides, the Plenary of the bar associations, with previous decisions, requests the protection of the first residence of vulnerable borrowers, the implementation of a Code of Ethics by debt collection companies, the removal of abusive behavior, the removal of the non-seizure of funds and the 10% advance payment for auction suspension .
“We are on strike, we are losing money, for essential reasons,” added Mr. Lazanis, noting that the banks have recently been turning to lawyers from Athens – who are not far away – in order to come to Ioannina and submit payment orders.