{"id":17888,"date":"2022-09-18T16:21:08","date_gmt":"2022-09-18T16:21:08","guid":{"rendered":"http:\/\/legalblog.ie\/?p=17888"},"modified":"2022-09-25T13:55:19","modified_gmt":"2022-09-25T13:55:19","slug":"credit-holders","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/credit-holders\/","title":{"rendered":"Credit Holders [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/credit-holders\/#Framework_for_credit_servicers_and_credit_purchasers\" title=\"Framework for credit servicers and credit purchasers\">Framework for credit servicers and credit purchasers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/credit-holders\/#Authorisation_of_credit_servicers\" title=\"Authorisation of credit servicers\">Authorisation of credit servicers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/credit-holders\/#Right_to_information\" title=\"Right to information\">Right to information<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/credit-holders\/#Application_Context\" title=\"Application &amp; Context\">Application &amp; Context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/credit-holders\/#MAIN_DOCUMENT\" title=\"MAIN DOCUMENT\">MAIN DOCUMENT<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Framework_for_credit_servicers_and_credit_purchasers\"><\/span>Framework for credit servicers and credit purchasers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Directive (EU) 2021\/2167 on credit servicers and credit purchasers<\/p>\n<p>It harmonises the rules for credit servicers* and credit purchasers* of a creditor\u2019s rights under a non-performing credit agreement.<br \/>\nIts aim is to support development of secondary markets for non-performing loans* in the European Union (EU), while ensuring the sale of such loans does not undermine borrowers\u2019 rights.<\/p>\n<p>The directive, apart from some clearly defined exemptions, applies to both credit servicers and credit purchasers of a creditor\u2019s rights under a non-performing credit agreement.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Authorisation_of_credit_servicers\"><\/span>Authorisation of credit servicers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Credit servicers must:<\/p>\n<p>require authorisation from the relevant national authority;<br \/>\nmeet certain conditions (failure to do so are grounds for refusal of an application), notably:<br \/>\nbe a legal person and have their registered or head office in that EU Member State,<br \/>\ndemonstrate members of their management or administrative bodies are of good repute with a clean police record, have not been declared bankrupt and have the knowledge and experience to act competently and responsibly,<br \/>\nemploy robust governance and adequate internal controls,<br \/>\nfollow rules for the protection and fair and diligent treatment of borrowers and for recording and handling their complaints free of charge,<br \/>\napply adequate anti-money laundering and counterterrorist financing procedures,<br \/>\nbe subject to national reporting and public disclosure requirements.<\/p>\n<p>National competent authorities must:<\/p>\n<p>apply an authorisation procedure for credit servicers requiring them to prove they meet all the conditions;<br \/>\ndecide within 90 days whether to grant or refuse authorisation;<br \/>\nhave supervisory, investigatory and sanctioning powers and may, in certain circumstances, withdraw an authorisation;<br \/>\nmaintain a publicly accessible online register of all credit servicers;<br \/>\nallow, subject to certain conditions, credit servicers authorised in one Member State to practise elsewhere in the EU.<\/p>\n<p>Credit purchasers and credit servicers, in their dealings with borrowers, must:<\/p>\n<p>act in good faith, fairly and professionally;<br \/>\nprovide information to borrowers that is not misleading, unclear or false;<br \/>\nrespect and protect the personal information and privacy of borrowers;<br \/>\nnot harass, coerce or unduly influence borrowers;<br \/>\nprovide the borrower with the following information after the transfer of a creditor\u2019s rights and before the first debt collection, or whenever a borrower so requests:<br \/>\nthe date of the transfer and identity and contact details of the credit purchaser,<br \/>\nthe amounts the borrower owes, broken down into capital, interest, fees and other charges,<br \/>\na statement certifying that all relevant EU and national laws continue to apply,<br \/>\nthe name, address and contact details of the relevant national authorities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Right_to_information\"><\/span>Right to information<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Credit institutions must:<\/p>\n<p>provide prospective credit purchasers with information on a creditor\u2019s rights so they may themselves assess the likelihood of recovering the outstanding loan;<br \/>\ngive information, such as credit purchasers\u2019 details and aggregate outstanding balance of the transferred credit portfolios, including their number and size, to their national authorities twice a year.<br \/>\nCredit purchasers transferring a creditor\u2019s rights must, twice a year and possibly quarterly, give the relevant authorities details of the new purchaser and information such as the aggregate outstanding balance.<\/p>\n<p>Member States are responsible for establishing appropriate administrative penalties and remedial measures for breaches of the directive.<\/p>\n<p>The European Banking Authority issues guidelines and technical standards on detailed aspects of the directive.<\/p>\n<p>The directive amends Directive 2008\/48\/EC (see summary) and Directive 2014\/17\/EU (see summary).<\/p>\n<p>The European Commission reports on:<\/p>\n<p>the adequacy of the regulatory framework to the European Parliament and the Council of the European Union by 29 December 2023;<br \/>\nits evaluation of the directive to the Parliament, the Council and the European Economic and Social Committee by 29 December 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application_Context\"><\/span>Application &amp; Context<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The directive had to be transposed into national law by 28 December 2021. These rules apply from 30 December 2023.<br \/>\nIn accordance with national law on 30 December 2023, entities already carrying out credit servicing activities will be allowed to continue to do so in their home Member State until 29 June 2024 or until the date on which they obtain an authorisation in accordance with this directive, whichever is earlier.<\/p>\n<p>A bank loan is generally considered non-performing when more than 90 days pass without the borrower paying the agreed instalments or interest, or when it becomes unlikely to be reimbursed.<br \/>\nEfficient management of non-performing loans reduces risks in banks\u2019 balance sheets, enabling them to focus on lending to businesses and individuals.<br \/>\nKEY TERMS<br \/>\nCredit servicer. A legal person that manages and enforces a creditor\u2019s rights and obligations under a non-performing credit agreement.<br \/>\nCredit purchaser. A natural or legal person, other than a credit institution, that purchases a creditor\u2019s rights under a non-performing credit agreement or the agreement itself.<br \/>\nNon-performing loan. Bank loan subject to late repayment or unlikely to be repaid by the borrower.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAIN_DOCUMENT\"><\/span>MAIN DOCUMENT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Directive (EU) 2021\/2167 of the European Parliament and of the Council of 24 November 2021 on credit servicers and credit purchasers and amending Directives 2008\/48\/EC and 2014\/17\/EU (OJ L 438, 8.12.2021, pp. 1\u201337).<\/p>\n<p>RELATED DOCUMENTS<br \/>\nDirective 2014\/17\/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008\/48\/EC and 2013\/36\/EU and Regulation (EU) No 1093\/2010 (OJ L 60, 28.2.2014, pp. 34\u201385).<\/p>\n<p>Successive amendments to Directive 2014\/17\/EU have been incorporated in the original text. This consolidated version is of documentary value only.<\/p>\n<p>Regulation (EU) No 575\/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648\/2012 (OJ L 176, 27.6.2013, pp. 1\u2013337).<\/p>\n<p>See consolidated version.<\/p>\n<p>Regulation (EU) No 1092\/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board (OJ L 331, 15.12.2010, pp. 1\u201311).<\/p>\n<p>See consolidated version.<\/p>\n<p>Regulation (EU) No 1093\/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716\/2009\/EC and repealing Commission Decision 2009\/78\/EC (OJ L 331, 15.12.2010, pp. 12\u201347).<\/p>\n<p>See consolidated version.<\/p>\n<p>Directive 2008\/48\/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87\/102\/EEC (OJ L 133, 22.5.2008, pp. 66\u201392).<\/p>\n<p>See consolidated version.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-17888\" data-postid=\"17888\" class=\"themify_builder_content themify_builder_content-17888 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Framework for credit servicers and credit purchasers Directive (EU) 2021\/2167 on credit servicers and credit purchasers It harmonises the rules for credit servicers* and credit purchasers* of a creditor\u2019s rights under a non-performing credit agreement. Its aim is to support development of secondary markets for non-performing loans* in the European Union (EU), while ensuring the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[128,49],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17888"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=17888"}],"version-history":[{"count":2,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17888\/revisions"}],"predecessor-version":[{"id":18335,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17888\/revisions\/18335"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=17888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=17888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=17888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}