EU Credit Servicing Directive Update – Compromise Draft Published

In our last update on the draft EU Directive on credit servicers and credit purchasers (the "Credit Servicing Directive"), we noted that negotiators on behalf of the European Parliament had agreed with the Council of the European Union on common standards regulating the transfer of non-performing loans ("NPLs"). A compromise draft (the "Compromise Draft") of the Credit Servicing Directive agreed to by representatives on behalf of the European Commission, the Council of the European Union and the European Parliament was recently published. This article discusses the features of the Compromise Draft of the Credit Servicing Directive.

Scope of Credit Servicing Directive

The initial draft of the Credit Servicing Directive published in March 2018 extended to all credit agreements issued by a credit institution or by its subsidiaries. The scope of the Compromise Draft of the Credit Servicing Directive is more limited, applying only to NPLs issued by a credit