Credit servicers, credit purchasers and the recovery of collateral (Directive)
The EU Commission wants to achieve a reduction in the high stocks of non-performing loans. A Directive on credit servicers, credit purchasers and the recovery of collateral aims to prevent a future increase.
In cep’s view, the EU passport for credit servicers may reduce entry barriers to the credit services market and help to create liquid, cross-border secondary markets for non-performing loans (NPLs). The implementing acts envisaged by the Directive should not however prescribe an excessive and costly level of information. The reporting obligations for each transferred credit are also disproportionate. Furthermore, the Commission cannot invoke the fact that the planned accelerated extrajudicial collateral enforcement procedure is based on Article 114 TFEU.