Those who adhered to a banking moratorium during the pandemic cannot be subject to higher interest rates or commissions from financial institutions. The obstacle is part of the new social support measures for families after the gradual end of the moratorium, starting at the end of September.“There has been a ban on interest rate hikes and heightened signs of deteriorating financial capacity, such as unemployment, loss of income, or the fact that a client is pursuing a professional career in a difficult sector,” the diploma said in a published diploma. Friday in Diario da Republic. The government argues that the moratoriums have helped to “preserve liquidity and regular funding” of the economy. However, with the end of these measures, “the protection of families, in particular with regard to the home loan, cannot fail to receive special attention”. These are the Plan of Action for the Prevention of Risk of Non-Performance (PARI) and the Out-of-Court Procedure for Resolving Situations of Non-Performance (PERSI).
In the first case, banks must assess the signs of deteriorating financial position 30 days before the end of the moratorium. And they must submit proposals that match the financial situation, goals and needs of their clients, in order to prevent defaults, within 15 days before this barrier.
In the second case, clients who are included in this procedure within 90 days after the termination of the moratorium retain for another three months such protections as a guarantee against termination of the contract or filing claims. The network of out-of-court support for the bank’s clients will also be activated, including information and arbitration centers for consumer disputes.
In addition to these two dates, regular monitoring will be carried out, which will be adjusted by the supervisor. “Also, the obligation to monitor the bank’s clients has been strengthened, which materializes in the fact that institutions need to take the necessary steps to detect signs of deterioration in the financial capabilities of clients with a minimum frequency to be determined by Banco de Portugal,” he points out.
The Decree-Law “also strengthens the reporting obligations of credit institutions, namely quantitative information that allows for proper supervision and sanctions in the event of non-compliance by Banco de Portugal.”
In connection with the pandemic, a banking moratorium regime was introduced. extended at the end of Julyin the capital component for the period from October 1 to December 31 in accordance with the law of the Parliament. However, this extension only applies to companies from the sectors most affected by Covid-19 and is subject to measures and regulations from the European Banking Authority (EBA), so these plans may start rolling out to families in the coming months.
(News will be updated at 19:00)
