DEBT MANAGEMENT
Servicers: how to negotiate correctly
· 8 min read · Georgios F. Dionysiou
A large portion of non-performing loans in Greece has been transferred to investment schemes and is managed by licensed servicers. For the borrower, this doesn't mean losing rights — it means the interlocutor and the negotiation logic change.
What changes and what doesn't
The legal nature of the debt doesn't change: the terms of the original contract, securities and any prescriptions remain. What changes is the creditor's horizon. A fund that acquired the portfolio below nominal value often has greater room for partial debt write-off, provided it secures immediate and certain collection.
What we always request before discussing amounts
- Written legitimization: who is the creditor, when the transfer occurred, and with what registration.
- Detailed debt statement separating principal, interest, default interest and charges.
- Copy of the original contract and all additional acts.
- Statement of securities and guarantors.
- Written formulation of any settlement proposal — never only by phone.
Where the negotiation is won
It's won in documentation. A file that shows with numbers what the debtor can realistically pay, and what the creditor would recover through enforcement, shifts the discussion from 'I want' to 'it pays.'
It's also won in timing: a proposal submitted before enforcement begins has significantly better terms than the same proposal three days before the auction.
Code of Conduct and harassment limits
The Bank of Greece Code of Conduct and the institutional framework for debtor information set limits on the frequency and manner of communication. Abusive or misleading practices can be reported to the competent authorities. Knowing these limits changes the tone of the discussion in your favor.
Sources & legislation
Disclaimer — this article is for informational purposes only and does not constitute, nor can it replace, personalized legal, financial or tax advice. The legislation, ministerial decisions, amounts and criteria mentioned may have been amended or repealed after the date of publication; all information must be verified against current provisions (Official Gazette, gov.gr) at the time you make a decision. The outcome of each case depends on its specific factual and legal circumstances, the fund or authority involved, and the applicable provisions at the time. Before deciding or acting on any point in this text, seek a personal assessment from a qualified professional who will examine your own case.