Loan agreements non-compliance.

Failure to meet credit responsibilities occurs when the banking customer does not pay an installment of the credit agreement they signed on the scheduled date.

Customers with overdue credit are subject to penalties, and their assets may be seized.

The banking customer should adopt a preventive attitude, anticipating a possible default situation. If they foresee difficulties in meeting their obligations, they should promptly notify the institution.

If the banking customer informs the institution of difficulties in meeting their obligations, the institution is required, under Decree-Law No. 227/2012 of October 25, to assess the risk of default.

The customer must provide the information and documents requested by the institution within 10 days.

The institution is not obliged to assess the situation if the customer does not provide the requested information and documents.

Within 15 days after the customer has provided the requested elements, the institution must propose solutions to avoid default on the credit agreement, whenever feasible.

To inform Banco Montepio of difficulties in meeting your obligations, you may visit one of our branches or call +351 217 241 624 (personalized service from 8 a.m. to midnight, cost of a call to a national landline).

PERSI - Out-of-Court Procedure for Settlement of Defaults, created by Decree-Law no. 227/2012, of October 25, aims to promote regularisation of default situations through negotiated solutions between the bank customer and the lending institution.

Lending institutions are obliged to integrate default loans into PERSI between the 31st and 60th day after default. Lending institutions are also obliged to initiate PERSI as soon as an installment is not paid, in cases where the bank customer has informed of the risk of default.

Bank customers with loans in default can request immediate integration of that credit into PERSI at any time.

Within 5 days following the start of PERSI, bank customers will be informed of this fact, as well as their rights and duties within the scope of this procedure.

Customers with loans relating to their own permanent home who are in default and in a particularly vulnerable situation can request access to the extraordinary scheme from the lending institution, as long as they meet the legally established requirements. This regime, aimed at protecting mortgage loan debtors in very difficult economic situations, was approved by Law no. 58/2012, of November 9, and will be in force until December 31, 2015, with the possibility of extension.

Under this regime, the lending institution is obliged to propose a debt restructuring plan to the bank customer, if viable. In exceptional situations, the lending institution must propose solutions that lead to partial or total extinction of the debt.

Bank customers with loans at risk of default or with overdue instalments may obtain information, counselling, and support from RACE, free of charge.

RACE is composed of consumer information and dispute arbitration centres, as well as other entities qualified and recognised by the Directorate-General for the Consumer. For more information about RACE, please visit the Directorate-General for the Consumer’s website at www.consumidor.gov.pt.

For additional information on the frameworks applicable to credit agreement defaults, please visit one of our branches or call +351 217 241 624 (personalized assistance available from 8 a.m. to midnight; cost of a call to a national landline), consult bancomontepio.pt/en/credit-default, or visit the Bank Customer Portal at http://clientebancario.bportugal.pt and the “Todos Contam” portal at www.todoscontam.pt.