Those who adhered to the bank moratorium during the pandemic cannot be subject to higher interest rates or commissions by financial institutions. Obstacle is part of the new Social support measures for families that will follow the gradual end of the moratorium, starting at the end of September.“The ban on increasing the interest rate and intensifying the signs of a deterioration in financial capacity, such as unemployment, loss of income or the client’s development of his professional activity in a sector that is experiencing difficulties, is established,” read in the diploma published this Friday in Diario da Republica. The government says the moratorium has allowed “the guarantee of liquidity and regular financing” to the economy. By discontinuing these measures, “the protection of the family, particularly in relation to credit for housing, cannot, however, not benefit from special attention.” The subject of contention is the Action Plan for Risk of Default (PARI) and the Non-Judicial Procedure for Settlement of Defaults (PERSI).
In the first case, banks have to assess the signs of a deterioration in the financial situation in the 30 days preceding the end of the moratorium. They shall submit proposals appropriate to the financial situation, goals and needs of their clients, with the aim of preventing cases of default, in the 15 days preceding this barrier.
In the second case, customers who are included in this action within 90 days after the termination of the moratorium, for another three months, retain protection such as a guarantee against termination of the contract or against filing of lawsuits. The extra-judicial support network for bank customers, including information and arbitration centers for consumer disputes, will also be activated.
In addition to these two deadlines, there will be regular monitoring, which will be adjusted by the supervisor. “The monitoring duties of banks’ customers, which is exemplified by the need for institutions to take the necessary steps to identify signs of deterioration in the financial capacity of customers, have also been strengthened, with the minimum regularity that Banco de Portugal sets,” he points out.
The Decree-Law also enhances the “reporting duties of credit institutions, i.e. quantitative information, allowing for appropriate supervision and penalties, in case of non-compliance, by Banco de Portugal”.
The bank suspension system adopted was due to the epidemic Extended in late July, in the capital component, for the period between October 1 and December 31, by an Act of Parliament. However, this extension is only for companies in the sectors most affected by Covid-19 and is subject to European Banking Authority (EBA) measures and regulations, so that families can start to cover with these plans in the coming months.
(news updated at 7pm)
