For the second time, the Plenary Assembly of the Presidents of the Bar Associations of Greece has condemned what it describes as abusive conduct by Asset Management Companies (AMCs) — commonly known as ‘funds’ — during its latest meeting. In a formal statement, the Assembly accused these firms of undermining borrowers’ rights and placing their assets at risk of loss, while also engaging in disrespectful behavior toward both lawyers and debtors.
Call for Government Action
The Assembly has formally requested a meeting with Finance Minister Kyrakos Pierrakakis to establish an appropriate regulatory framework aimed at preventing such practices in the future — including enforceable penalties for violations. This step follows what the Assembly described as the Bank of Greece’s inaction after it submitted a letter detailing specific misconduct by certain AMCs.
Proposed Reforms
Among its key proposals, the Assembly is calling for the creation of a digital platform to verify the status of loans — including those that have been settled, fully repaid, or otherwise resolved. A certificate issued by this platform would become a mandatory procedural requirement before any forced execution process can be initiated by an AMC.
The Assembly also pledged to raise public awareness about the scale of the problem, emphasizing its damaging impact on social cohesion and the economic well-being of large segments of Greek society. It warned that if such abuses continue — or if the state fails to take necessary corrective measures — it will authorize its Coordinating Committee to recommend targeted actions by bar associations, specifically directed at AMCs.
Conflict-of-Interest Concerns
In addition, the Assembly strongly opposed banks’ attempts to appoint lawyers of their own choosing to represent borrowers during enforcement notices — a practice it says raises serious conflicts of interest and compromises the integrity of legal representation.