MHMP: Prague is again launching an information campaign for the Merciful event
01/09/2022 15:13 | Press Release
Debtors have another option to get out of foreclosure
Thousands of people who got into enforcement because of unpaid fees, fines or rents against the City Hall. m of Prague, its municipal organizations or municipal districts, once again have the opportunity to pay a much smaller debt thanks to the so-called Summer of Mercy II. This time the event will last from September 1, 2022 until November 30, 2022. Prague is launching an information campaign in means of transport, in the media and in other places in the metropolis. Prague residents can once again contact the toll-free number 800 100 000 for help.
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The summer of grace, which is repeated almost a year later, is intended to help people get out of foreclosure not only against the state, but also against regions and municipalities. City Hall m of Prague, city districts and various city organizations are taking part in the event again.
Borrowers only need to pay the principal of the debt, i.e. the original unpaid fee, and the executor’s fee, which is set at CZK 1,815 incl. VAT. On the contrary, it is no longer necessary to pay all penalties, late interest, penalties and other costs. These will be forgiven during the Summer of Mercy. All you have to do is send a registered letter to the executor, in which you ask for a calculation of the outstanding principal and at the same time inform him that you are using the Summer of Love promotion.
“Debts have to be paid. But their enforcement must not be liquidating for the debtor. Due to bad laws and unethical practices of bailiffs, many people due to a small debt have ended up in a debt trap that they cannot get out of. This is how we want to help people out of hopeless situations. I therefore hope that as many people as possible will take advantage of the chance of Gracious Summer II and thus achieve, for example, a new start in life without debts,” says the head of the council. m of Prague for the area of legislation, public administration and housing support Hana Kordová Marvanová.
“Unfortunately, too many Czech households are troubled by the debt spiral, and as a result they find themselves outside the system. For them, the gracious summer is an opportunity that can open the door to a normal life again. It is also an opportunity for our entire society to solve the part that increases the city’s expenses for the necessary solution of social consequences and, due to the departure of debtors into the gray economy, reduces budget revenues from taxes. That is why Prague is once again involved in a project that can save public money and change the lives of many people,” adds the mayor. m of Prague. Zdenek Hrib.
In the case of Prague and its organizations, they most often relate to various unpaid fees, arrears for waste collection, fines for illegal driving or perhaps debts to the energy supplier or for rent in a municipal apartment. Only within the transport enterprise hl. m of Prague, 13,846 cases were closed during the last Summer of Mercy event. The greatest interest was in the last 14 days of the event. Foreclosure was terminated in this way for 8% of those who owed money to the Prague transport company, which is a significantly higher success rate than for other transport companies in the Czech Republic.
“As a co-author of the draft, I am extremely happy that we have Summer of Mercy II and that Prague has again taken a very active approach to it. It is a model for other cities and regions. It is one thing that this institute of grace summer will help debtors against public creditors in foreclosures that are enforced by private bailiffs, but it is another thing for them to learn about this possibility at all and to do so in time. For example, at the Transport Company of the Capital City of Prague alone, the grace summer applies to potentially 175,000 borrowers. High energy prices can complicate this effort to solve the deposits from the past,” explains representative and MP Patrik Nacher.
People in Need also provide cooperation to the capital. “During the first Summer of Mercy, Prague was one of the first creditors to understand the Summer of Mercy as an opportunity for its citizens, so I welcome that Prague is once again among the first to help its residents take advantage of this opportunity. At the same time, the creditor need not be only Prague, but also health insurance companies, and it is through this initiative that people can learn about it,” concludes Daniel Hůle, head of the Debt Counseling program of People in Need.
The new Summer of Mercy promotion will start on Thursday, September 1, 2022 and will end on November 30, 2022. However, the promotion only applies to foreclosures started before October 28, 2021. People can use the toll-free number 800 100 000 to provide details. More information is also available HERE.
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author: Press Release