New legislation seeks to remove hidden terms in bank loans

The minister, speaking on the Mega television programme “Live News,” emphasized that the aim of the intervention is to strengthen transparency and eliminate the “fine print” in banking contracts.

Which contracts the new framework concerns
According to the minister, the new regulations will apply to loans of up to €100,000 without collateral, such as consumer and repair loans, as well as credit cards.

A central element of the bill is the establishment of a ceiling on the total charges that can be imposed on borrowers. “The bank will not be able to burden the citizen with more than 30% to 50% of the original principal it has lent,” Mr. Theodorikakos stated, clarifying that the measure will not have retroactive effect and will apply to new contracts from November.

In addition, the framework provides for consumers to request communication with a bank representative when receiving offers via digital applications, as well as a 14-day right of withdrawal after signing the contract. “If we want trust between the banking system and citizens, we must implement these transparency measures,” the minister noted, adding that further consultations will follow with the Governor of the Bank of Greece, Giannis Stournaras, and consumer organizations.

Inflation and market controls
Regarding inflationary pressures, the minister acknowledged that international factors continue to play a significant role, such as energy prices and developments in the Middle East. However, he argued that market control measures are proving effective, making special reference to product profit caps and inspections carried out by the new Independent Authority.

As he noted, the implementation of these measures has contributed to the containment of price increases in essential goods, while in several product categories price reductions are now being recorded.