If you have defaulted on your credit, PERSI is a support mechanism you can use. Learn how it works.
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O PERSI (Extrajudicial Procedure for Regularizing Default Situations) translates into a negotiation between credit institutions and their debtors, so that they are able to regularize their loans with facilitated conditions. These conditions are renegotiated by both parties, thus avoiding recourse to the courts as a means of settlement.
This mechanism is applicable to the vast majority of credit agreements, with the exception of those carried out under a financial leasing regime.
Who can use PERSI?
Integration into this extrajudicial procedure can be accomplished, essentially, in three ways:
- The credit customer may request to be included in this instrument;
- Immediately, after a delay in payment, if the customer has previously alerted the credit institution to the risk of default;
- Between the 31st and 60th day after missing one of the installments.
How does PERSI integration work?
It is up to the financial institution, after the entry of a certain customer of its credit in the PERSI, to carry out an analysis of its financial capacity, in order to assess the veracity of its allegations and/or its situation of default.
Within a period of 30 days, the credit entity must formalize one or more proposals, in order to facilitate the settlement of the default of its customer.
According to Portugal’s bankthe solutions proposed by the institution may include changing one or more of the following conditions of the credit agreement:
- Extension of the amortization period;
- Setting a grace period for repayment of capital or for repayment of capital and payment of interest;
- Deferment of part of the capital for an installment at a future date;
- Reduction of the interest rate applicable to the contract during a certain period of time.
In addition, the credit institution may also propose the consolidation of credits and/or the conclusion of a new credit agreement with the purpose of refinancing the debt of the existing credit agreement.
As PERSI is based on a negotiation mechanism, up to 15 days after receipt of the new conditions advanced by the credit institution, the debtor has the right to oppose them with his proposals.
As soon as an agreement is reached between the parties, the credit customer is bound and obliged to comply with the new conditions of the contract.
During the course of this mechanism, the credit institution is prevented from:
- Transfer your contractual position to third parties;
- Take legal action against your client with a view to recovering the credit;
- Initiate a process of dissolution of the credit agreement based on non-compliance.
Also keep in mind the following: according to the lawthe credit institution cannot charge you any commissions for formalizing the renegotiation of credit within the scope of PERSI, nor can you increase the interest rate.
In addition to the non-cooperation of the credit customer in order to establish a path that points to an agreement, insolvency, the lack of financial capacity and, also, the execution of acts that may jeopardize the guarantees of the credit institution lead to the right of the credit institution to terminate the PERSI immediately.
On the other hand, and for obvious reasons, the full payment of the sums owed, as well as the debtor’s insolvency decree, also lead to the automatic termination of the procedure in question.
What are the advantages of joining PERSI?
PERSI has clear advantages, in view of the benefits for its stakeholders and society:
- With a lower bureaucratic burden, it allows for greater speed in the renegotiation process between creditor and debtor;
- It avoids the execution of more ongoing legal processes, in a currently slow system;
- The debtor sees his conditions improved with the renegotiation, reducing his financial effort with regard to the settlement of his credits;
- Finally, the credit institution receives the amount owed to it.