Bank Millennium offers a debt consolidation loan to clients who intend to reduce the costs of loan repayment with the option to amortize their debt in other banks. In addition, clients may take advantage of a deferred payment of one installment of a cash loan or a consolidation loan, which is very helpful for those who must use the funds for an installment payment in a given month for other purposes.
If a loan is not repaid, the Bank first seeks to reach an amicable settlement, offering clients an opportunity to enter into restructuring agreements.
Debt restructuring applied by the Bank in the process of pursuing retail clients’ receivables involves the execution of an annex to the original agreement (in a traditional form at the Bank’s outlet or via electronic channels) or a separate restructuring agreement whose content modifies the binding debt repayment terms binding for the client, as appropriate to the client’s standing and financial capabilities.
The restructuring and collection of receivables is carried out by dedicated organizational units of the Bank, separate for receivables due from corporate and retail customers (including Business customers), acting in line with both internal (instructions and guidelines) and external regulations. For instance, the Bank enabled customers to benefit from relief measures introduced by the government, such as the suspension of interest and principal installments or a non-legislative moratorium implemented in connection with the spread of the COVID-19 pandemic in accordance with the European Banking Authority’s Guidelines on legislative and non-legislative loan repayments moratoria.
The process of recovery of retail clients’ receivables is performed with the use of an IT support system, linked to the Bank’s operating system and credit card administration system, enabling identification of bad debts, their review, monitoring, recording of activities, progress and effects of the recovery, dispatch of key correspondence, as well as reporting and management of the specific receivables.