The Commission welcomes the political agreement between the European Parliament and the Council on the proposal for a Directive on credit servicers and credit purchasers.
One of the key objectives of the Directive, adopted back in 2018, is to
improve the access and transparency of secondary markets for
Non-Performing Loans (NPLs). In particular, the Directive creates common
reporting requirements for credit purchasers and an obligation to
appoint a credit servicer for consumers and third-country investors.
this way, the new rules will create a Single Market for credit
purchasers and credit servicers. This will foster competition, raise the
average sale price of NPLs and significantly reduce servicing costs for
the benefit of borrowers. In addition, the Directive amends the Consumer Credit Directive and Mortgage Credit Directive.
These amendments ensure that consumers will benefit from forbearance
measures, are duly informed when the credit is transferred, and are able
to keep the same contractual rights they had with the credit
originators. Mairead McGuinness, Commissioner responsible for financial services, financial stability and Capital Markets Union said: “The new rules will strengthen and improve market transparency and consumer protection and help ensure that the current crisis and the potential rise of NPLs will not affect financial stability in the EU.” The
agreement concerns the specific rules related to the secondary markets
of NPLs. Work is ongoing in the European Parliament on the remaining
part of the March 2018 proposal. This part seeks to facilitate the
recovery of collateral from businesses in order to increase their
chances of obtaining credit.
More information on non-performing loans
(NPLs) is available here.
Directive on credit servicers and credit purchasers
© European Commission
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