Credit Servicing Directive

On 9 November 2021, the proposed Directive on credit servicers and credit purchasers(the "Directive") was approved by the EU Council. This follows its approval by the European Parliament in October. The Directive will now be published in the Official Journal of the European Union and will enter into force on the 20th day following publication. EU member states will then have to transpose the Directive into national law within 24 months.

The Directive applies only to non-performing loans ("NPLs") issued by a credit institution established in the EU. Credit servicers in scope must obtain an authorisation in their home EU member state and will then have the right to provide those services in other EU member states.