INTEREST RATE ADJUSTMENTS – RECALCULATION OF INSTALLMENTS – KATSELI LAW (LAW 3869/2010) – OVER-INDEBTED HOUSEHOLDS – PROTECTION OF PRIMARY RESIDENCE

The issue regarding the adjustment of interest rates and, consequently, the recalculation of installments defined in the positive court decisions of the Katseli Law (Law 3869/2010) is particularly pressing in light of the war in Ukraine and its global economic repercussions.

Adjustments to loan interest rates will continue, and vulnerable borrowers risk being excluded from the protection of the Katseli Law (Law 3869/2010) if they do not correctly pay the monthly installments stipulated by the positive court decision.

Regarding this matter, you can watch the interview of the managing partner of NEWLAW, Vίκτωρ Τσιλώνης, on Vergina Television, who informs the Greek public for the first time about this critical legal issue. You can watch this interview by clicking HERE:

Firstly, it must be emphasized that the positive court decision must be adhered to as published. This is because a court decision is not a rule of dispositive law that is left to the will of the parties. It is the expressed will of the judicial authority aimed at the proper administration of justice.

In simple terms, this means that even credit institutions may not correctly implement the published court decision. However, there is no obligation on the part of the banks to inform about the correct implementation of the court decision and therefore about the correct amount of the monthly installment paid. This is the obligation of the borrower himself, who was brought under the protective scope of the Katseli Law (Law 3869/2010).

In this case, it is possible and often happens that Banks – credit institutions incorrectly calculate the monthly – due installments, and thus many vulnerable borrowers who have been brought under the protection of Law 3869/2010 (Katseli Law) risk being excluded from the protective scope of the relevant law if a new or other fund, as a special successor to the claims of the credit institutions, undertakes the regulation and execution of the borrowers' claims against the banks.

It is possible, therefore, that in the event of the loan being bought by a fund, which will interpret the published court decision, it may subsequently find that the content of the positive court decision is not being correctly implemented and may request: 1) the annulment of the court decision and 2) the initiation of enforcement proceedings to satisfy the claims after it is established that the vulnerable borrower is no longer under the protection of Law 3869/2010.

Therefore, this fact makes it absolutely necessary to immediately recalculate the installments of all borrowers who have won their Katseli Law court case for the "haircut" of their debts and the protection of their primary residence and have been included in its beneficial provisions, so that they can maintain the positive court decision issued in their favor.

So, if you want to be absolutely sure that you are correctly complying with the court decision issued in your favor and not worry about whether the monthly payment of installments for the protection of your primary residence is correct, do not hesitate to call NEWLAW. Specialized legal advisors with specific expertise on the matter are able to answer all your questions and recalculate your installments so that you can continue to correctly comply with the decision of the Katseli Law (Law 3869/2010) and remain safely within its protective framework.

For more information, if you have won your case and have been included in the beneficial provisions of the Katseli Law (Law 3869/2010) for the "haircut" of your debts and the protection of your primary residence, as well as to schedule an appointment for the recalculation of your installments, you can call NEWLAW on all working days from 8:30 a.m. to 4:00 p.m. at the telephone number 2310 551 501.