Legislative changes discussed regarding financial ombudsman and property foreclosures

On Monday, the Parliamentary Committee on Finance reviewed revisions to bills concerning the Financial Ombudsman and foreclosure procedures. Key changes include increasing the deadline for filing a complaint with the Ombudsman from 21 to 30 days after receiving a notice. The period for parties to seek a resolution has also been extended from 15 to 30 days. Additionally, a 60-day protection period against foreclosure is introduced, allowing debtors to consult with insolvency practitioners. Debtors may initiate the request once they receive a Type I letter, though this can only be done once. The legislation stipulates that if a borrower breaches a restructuring agreement, financial institutions may proceed with the loan sale. Decisions issued by the Financial Ombudsman must now be written and justified, though they remain subject to legal challenge in District Court. Implementation of the new law is scheduled for June 1, with approximately 15 legislative measures expected to reach the plenary session next Monday.