The aim of the amendments that have now been adopted is to improve the procedure for the payment adjustment and make the procedure clearer and more efficient, to the benefit of applicants.

The amendments will take effect on 1 April.

The main changes that were adopted are as follows:

• Amendment to the treatment of certain claims that are outside the payment adjustment so that the remedy becomes more comprehensive. This means that certain claims can become part of the contract payment schedule, even though they cannot be provided for (e.g. VAT, co-payments, penalties).

• Extending the conditions for residence and legal domicile in Iceland and changing the circumstances that can lead to rejection of an application, so that more people can seek payment adjustment.

• Amendments to the treatment of mortgage debt, including in response to specific circumstances such as high interest rates. Lower payments or maturities on mortgage loans may be provided for under certain circumstances.

• New procedures for overdrafting of real estate, where individuals can request a reduction in the overdraft based on the market value of the real estate, subject to certain conditions.

• That claims for student loan guarantee obligations are subject to a payment adjustment so that they can be treated in a contractual manner.

• Changes to the procedures for amending or cancelling the ADR, among other things, to increase the probability of the debtor being able to comply with the agreement and increase efficiency with regard to creditors.

Further information and education will be published on the website of the UMS in accordance with the changes that have been adopted as the law comes into force.