The aid includes from the reduction of the quotas (in exchange for extending the credit) to grace periods. See how to apply.
The Financial Superintendency extended the Debtor Support Program until August 31, 2021. The measure, which began to take effect in the eighth month of 2020, orders banks to give targeted (personalized) reliefs for the millions of Colombians who cannot pay their credits due to the COVID-19 crisis.
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The aid includes from the reduction of the quotas (in exchange for extending the credit) to grace periods. To apply or find out the details of the Debtor Support Program, the user can consult directly with their financial institution.
“Due to the persistence of the COVID-19 phenomenon and the need to continue generating financial conditions so that the processes of reopening and economic reactivation take hold, this Superintendency considers it necessary to extend the application of the PAD and its complementary measures in terms of risk management of credit adopted through External Circular Letter 022 of 2020. The foregoing, in order for debtors to continue consolidating an orderly transition in their payment habits under conditions of financial viability, and to maintain a sustainable supply of credit, ”explained the Superfinancial.
During the program, 2,236,844 debtors have redefined the conditions of their loans for a value of $ 36.1 billion. And 90.3% of this portfolio has managed to keep up to date with payments, which for the Superfinancial reaffirms that “the PAD is a tool that has managed to maintain a balance between the need to provide solutions to debtors, and the appropriate risk management and disclosure ”.
This is the second extension to the Debtor Support Program: initially it ended in December 2020, then it was extended until June 30, and now it will go until August 31, 2021.
Other options for debtors
Since 2012, the Insolvency Law for individuals has existed in Colombia, a resource that allows negotiating with creditors before suffering the serious consequences of prolonged default, such as wage garnishment or losing a home in the event of a mortgage loan. However, it is a last resort option, as it leaves the person who uses it highly limited.
With the Insolvency Law, a payment agreement is reached with creditors, but generally it implies that all possible income will be used for the payment of debts. That is, they leave the person with just enough to survive. In addition, it remains financially limited, as it will affect the credit history and new credits cannot be requested (unless it is for basic needs and maximum to cover monthly expenses).
Follow the news of El Espectador on Google NewsThe other option to appeal is Circular 026 of 2017 of the Financial Superintendency, a very useful resource when you have debts with a single entity. This legal recourse can be invoked by means of a right to petition, which allows the restructuring of the credits to suit the debtor. In fact, this option was created to give the option to improve the conditions of the loans without having to use the Insolvency Law. But it only applies to credits with up to 90 days past due.