S.L. 378.10 Art. 17CArrears and enforcement.

(1) Creditors shall have adequate policies and procedures to ensure that they make efforts to exercise, where appropriate, reasonable forbearance before enforcement proceedings are instituted. The said forbearance measures shall take into account, among other elements, the consumer’s circumstances and among other possibilities may consist of:

(a) a total or partial refinancing of a credit agreement;

(b) a modification of the existing terms and conditions of a credit agreement, which among others may include:

(i) extending the term of the credit agreement;

(ii) changing the type of credit agreement;

(iii) deferring payment of all or part of the instalment repayment for a period;

(iv) changing the interest rate;

(v) offering a payment holiday;

(vi) partial repayments;

(vii) currency conversions;

(viii) partial forgiveness and debt consolidation:

Provided that the list of potential forbearance measures set out in this sub-regulation is without prejudice to the rules set out in national law, including in particular the national provisions implementing the European Banking Authority Guidelines on management of non-performing and forborne exposures (EBA/GL/ 2018/06), the European Central Bank Guidance to banks on non-performing loans, and the Guidelines on the requirements regarding arrears and enforcement set out in the Fourth Schedule which implement the European Banking Authority Guidelines on arrears and foreclosure.

(2) The Director General shall adopt measures to encourage creditors to exercise reasonable forbearance in accordance with sub-regulation (1).

(3) Where the creditor is permitted to define and impose charges on the consumer arising from the default, those charges shall not be greater than is necessary to compensate the creditor for costs it has incurred as a result of the default.

(4) The parties to a credit agreement may expressly agree that the return or transfer to the creditor of the security or proceeds from the sale of the security is sufficient to repay the credit.

(5) Where the price obtained for the immovable property affects the amount owed by the consumer, the Director General shall implement procedures or measures to enable the best efforts price for the foreclosed immovable property to be obtained.

(6) Where after enforcement proceedings outstanding debt remains, the Director General shall ensure that measures to facilitate repayment in order to protect consumers are put in place.

(7) In accordance with sub-regulation (2)(1)(a) of regulation 3A and in terms of sub-regulations (2) and (3) of this regulation, the Director General shall adopt measures on the requirements regarding arrears and enforcement which emanate from the EBA Guidelines with the reference EBA/GL/2015/12 as set out in the Fourth Schedule:

Provided that the terms used and defined in these Regulations shall have the same meaning assigned to them in the Guidelines in the Fourth Schedule.