Incredible mediation between the Bank and a couple-borrowers with one home loan and four consumer loans. The couple had been suffering for about a decade due to improper guidance and handling of the case. They appealed to the competent district court, but it was unfortunately dismissed for fraud.
They addressed to the law firm of Mrs. Anna Korsanou lawyer and accredited mediator who advised them to resort to Banking Mediation as an alternative.
In this case, the couple succeeded through a seven-hour negotiation of a significant reduction in their home loan and a monthly installment. The write-off on their consumer loans was extremely high and the monthly installment was also commensurate with their incomes.
You can get an idea of the arrangement as follows.
Their four consumer loans came together in a single amount of debt.
Subsequently, the accounting interest which was about half the amount of the debt was written off. The loan was then split into two parts: the first lesser debt and the second more larger debt. A monthly installment has been set commensurate with their potential for the first part of the debt, and if they are consistent and pay off the first part, the second and most of the debt will also be written off. So, we are talking about double write-off both of interest and the second and most of the remaining debt.
The mediation lasted seven hours, it took place in a specially designed room under civilized conditions of utmost courtesy without any of the parts being held accountable as the mediator is not a judge, not making decisions but helping the parties to negotiate.
At the end of the mediation process, signed a success report with the new loan restructuring arrangement and it was moving that the two borrowers wept and embraced after so many years of suffering they finally settled a life problem for their family.
For privacy reasons it is not possible to disclose specific amounts and numbers and write-off rates. You can find out more for Banking Mediation at our Office.
You should pay attention. It should be emphasized that each case is different and regulated differently and mediation should not be considered an easy and fast way of writing off loans. Each case is unique.
In this case, however, there has been tremendous success.
We are proud that our office is at the forefront of successful banking mediation cases.