MEDIATION
Banking mediation: when it pays off and how to prepare
· 7 min read · Georgios F. Dionysiou
Banking mediation is an alternative, out-of-court dispute resolution process between a borrower and a bank (or servicer). Its goal is to reach an agreement with the help of an accredited mediator — without a trial, without years of delay, and with confidentiality.
When it makes sense
Mediation makes sense when both sides have a genuine willingness to agree and the borrower has a documented, realistic proposal — not just a 'haircut' request.
Specifically, it's indicated when: the file has been audited and findings exist (interest calculation errors, abusive terms), the financial picture is clear, and the bank has shown willingness to negotiate, or when the mandatory initial session (Law 4640/2019) has already been scheduled.
How it differs from a trial
- Speed: the process is usually completed in one day, not years.
- Confidentiality: what's discussed cannot be used in subsequent litigation.
- Flexibility: the solution is tailored to real financial circumstances, not legal formulas.
- Control: the parties decide — no third party imposes a solution.
- Enforceability: the agreement, once filed, constitutes an enforceable title.
Who pays
The mediator's fee is determined based on the institutional framework and applicable ministerial decisions, and is generally shared between the parties. In practice, the cost is significantly lower than a multi-year legal dispute — and predictable from the start.
How to prepare
- Documented financial picture: income, expenses, assets, debts — in presentable format.
- Loan audit: if findings exist (errors, abusive terms), it's the strongest negotiation tool.
- Clear proposal: realistic repayment or restructuring plan, with sustainable numbers.
- Awareness of your rights: what you can claim and what your limits are.
If it doesn't result in an agreement
If mediation doesn't result in an agreement, minutes of non-achievement are drawn up. You lose nothing: the case can proceed to litigation, and everything discussed remains confidential. The preparation, however, isn't wasted — the file is ready.
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 The legislation, ministerial decisions, amounts and criteria mentioned may have been amended or repealed after the date of publication; all information must be verified against current provisions (Official Gazette, gov.gr) at the time you make a decision.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.