Debt Settlement Glossary
The most common terms debtors encounter when settling their debts
The procedure when the borrower’s assets are liquidated (sold) in public, aiming to satisfy the lenders’ claims.
The natural or legal person to whom the ownership of money or assets is temporarily assigned.
Also called the debtor.
The company which undertakes to contact the borrower, aiming to inform them about and/or find a forbearance solution.
doValue Greece is a credit servicing company.
The cooperation framework between Credit servicing companies and borrowers to settle overdue debts.
Find out all about the Code of Conduct under Law 4224/2013.
The interest rate used to calculate the interest on overdue debts.
Default interest rate is higher than the contractual interest rate. The overall amount charged depends on the length of the payment delay.
This is the borrower. The natural or legal person to whom the ownership of money or assets is temporarily assigned.
Also called principal debtor.
Co-debtor is the natural or legal person co-signing the temporary assignment of money or assets, who is jointly liable with the principal debtor.
Early repayment of the loan or settlement, in part or in full, before the instalment payment date elapses or the loan term ends.
The natural or legal person who assumes an obligation against the lender to repay the loan or overdue debt if the borrower is not able to meet their contractual obligation.
It is possible to have one or more guarantors.
A loan with overdue amounts.
Also, called a non-performing, distressed or “red” loan.
Any natural or legal person granting any form of credit or being entitled to collect claims arising from loan and/or credit facilities.
The agreement in which the borrower and the credit institution enter before the loan is disbursed. It relates to the product the borrower has chosen and includes detailed terms and conditions.
This is a loan in arrears or “red” loan.
A borrower is classified as non-cooperating when:
- They do not give full and up-to-date contact information.
- They do not respond to calls and letters from the company with sincerity and clarity.
- They do not cooperate in the effort to find a mutually beneficial solution with the company.
Find out when is a borrower classified as non-cooperating, according to the revised Code of Conduct under Law 4224/2013.
Money that should have been paid to the Lender on a certain date.
The person appointed in a loan agreement or settlement to receive any documents or action files relating to the loan and/or the settlement that are addressed to the debtor and/or the guarantor.
This is a loan in arrears or non-performing loan.
The contract concluded between the Borrower and the Lender for settling the Borrower’s overdue debts, with the aim of repaying them in full.
The process whereby the loan agreement and/or the settlement agreement is terminated (denounced) and the Lender has the contractual right to claim immediate repayment of the total outstanding amount of the principal, as well as any due interest, additional charges and expenses until full repayment.
