A draft bill reforming the Office of the Financial Ombudsman introduces major changes for borrowers and financial institutions, lawmakers were told Monday during a meeting of the House Finance Committee.
The proposal would allow borrowers to seek restructuring of non‑performing loans even when foreclosure proceedings are already under way, provided certain conditions are met — including protection of a primary residence valued up to €350,000 and the absence of a court judgment.
If lenders and borrowers agree on the size of the debt but disagree on repayment terms, they would have 15 days to reach a settlement.
A successful agreement would halt the foreclosure process.
For the first time, decisions issued by the Financial Ombudsman would become binding for disputes up to €20,000.
Under the new framework, rulings would no longer be merely advisory but compulsory for all parties involved.
