Lawmakers have examined a series of technical and substantive amendments to a bill reforming the Financial Ombudsman’s procedures, with debate centering on whether the Ombudsman’s decisions should be binding on financial institutions.
Finance Ministry officials said most changes are technical, but several deadlines are being extended. The period for filing a complaint after receiving a notice increases from 21 to 30 days, while the time allowed for the parties to seek a solution doubles from 15 to 30 days. A 60‑day protection period from foreclosure is also introduced, during which borrowers may consult an insolvency adviser.
Under the revised text, borrowers may submit a request to the Ombudsman upon receiving a Type I letter. A provision was added allowing licensed institutions to resume loan‑sale procedures if an eligible borrower breaches a restructuring agreement. The bill also outlines grounds for appealing Ombudsman decisions, mainly for financial institutions. Implementation is set for June 1.
The key point of contention is whether the Ombudsman’s decisions should become binding once accepted by the consumer. Financial Ombudsman Valentina Georgiadou told the committee the measure would address the imbalance between consumers and financial institutions, arguing that requiring consent from both sides “effectively nullifies” the institution’s purpose.
She said the approach aligns with the EU directive on alternative dispute resolution, which allows member states to decide whether such decisions are binding. She stressed the provision concerns complaints and disputes, not foreclosure procedures.