Decree-Law No. 70-B/2021, of 6 August (i) amends the Regime on the prevention and regularization of situations of default on credit agreements provided for in Decree-Law No. 227/2012, of 25 of October and (ii) also establishes protection measures for bank customers covered by exceptional and temporary credit protection measures.
(I) MAIN CHANGES TO THE REGIME RELATING TO THE PREVENTION AND REGULARIZATION OF NON-COMPLIANCE WITH CREDIT CONTRACTS
This diploma clarifies that the principles and rules to be observed by credit institutions in the prevention and regularization of situations of default on credit agreements by bank customers apply to financial companies, payment institutions and electronic money institutions, regarding to the following credit agreements:
• Consumer credit agreements for residential properties;
• Consumer credit agreements (Decree-Law No. 133/2009, of June 2, in its current wording);
• Consumer credit contracts.
Main measures to be observed by credit institutions:
• Monitoring the execution of credit agreements, adopting the measures and procedures necessary to prevent bank customers from defaulting on their obligations under these agreements;
• Prohibition of aggravation of the interest rate on credit contracts within the scope of agreements signed with bank customers aimed at preventing or regularizing non-compliance situations
• Adoption of extrajudicial procedures for the settlement of default situations (known as PERSI) which may include, for example, the extension of the amortization period, the consolidation of several credits, the reduction of the interest rate during a certain period of time, etc.
(II) EXCEPTIONAL AND TEMPORARY CREDIT PROTECTION MEASURES
• Special monitoring of bank customers who have benefited from the credit moratorium;
• Regarding bank customers who are benefiting from an exceptional credit protection measure, institutions must assess signs of deterioration in the bank customer's financial capacity (up to 30 days before the end of the effects of the exceptional measure) and present proposals that are adequate to the financial situation, objectives and needs of bank customers.
This diploma enters into force on the day following its publication, i.e., August 7, 2021.
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