2018/0063A(COD) Credit servicers and credit purchasers (Non-performing loans Directive)
Lead committee dossier:
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON |
DE LANGE Esther ( EPP),
TINAGLI Irene ( S&D)
|
EROGLU Engin ( Renew),
URTASUN Ernest ( Verts/ALE),
ZANNI Marco ( ID),
VAN OVERTVELDT Johan ( ECR),
PAPADIMOULIS Dimitrios ( GUE/NGL)
|
| Former Responsible Committee | ECON | ||
| Committee Opinion | JURI | ||
| Committee Opinion | IMCO | ||
| Former Committee Opinion | IMCO | ||
| Former Committee Opinion | JURI |
Lead committee dossier:
Legal Basis:
TFEU 053-p1, TFEU 114
Legal Basis:
TFEU 053-p1, TFEU 114Subjects
Events
2021/12/10
EC - Commission response to text adopted in plenary
Documents
2021/12/08
Final act published in Official Journal
2021/11/24
CSL - Draft final act
Documents
2021/11/24
CSL - Final act signed
2021/11/05
EP/CSL - Act adopted by Council after Parliament's 1st reading
2021/10/19
EP - Results of vote in Parliament
Documents
2021/10/19
EP - Decision by Parliament, 1st reading
Details
The European Parliament adopted a legislative resolution on the proposal for a directive of the European Parliament and of the Council on credit servicers, credit purchasers and the recovery of collateral.
The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission's proposal as follows:
Objective
The new directive harmonises the rules for credit servicers and credit purchasers with regard to non-performing loans issued by credit institutions. Its aim is to support the development of secondary markets for non-performing loans in the EU while ensuring that the sale of such loans does not undermine the rights of borrowers.
The directive covers both the creditor's rights under a non-performing credit agreement and the non-performing credit agreement itself.
Authorisation
A designated authority in the home Member State will be responsible for the authorisation and supervision of credit servicers, in close cooperation with the authorities of other Member States.
The directive specifies that the applicant must be a legal person having its registered office or head office in the Member State where it applies for authorisation.
Conditions for granting and maintaining authorisations should ensure that:
- the members of the applicant’s management or administrative organ: (i) have a clean police record in relation to relevant criminal offences, in particular those relating to property, financial services and activities, money laundering, usury, fraud, tax crimes, violation of professional secrecy; (ii) have always been transparent , open and cooperative in their past business dealings with supervisory and regulatory authorities;
- the applicant’s management or administrative organ, as a whole, has adequate knowledge and experience to conduct the business in a competent and responsible manner;
- the persons who hold qualifying holdings are of sufficiently good repute;
- the applicant has in place robust governance arrangements and adequate internal control mechanisms, including risk management and accounting procedures;
- the applicant: (i) applies an appropriate policy ensuring compliance with rules for the protection of borrowers; (ii) has in place adequate anti-money laundering and counter terrorist financing procedures ; (iii) is subject by virtue of applicable national law to reporting and public disclosure requirements.
Member States should determine whether credit servicers, when performing credit servicing activities in their territory, are either: (a) allowed to receive and hold funds from borrowers to transfer those funds to credit purchasers; or (b) prohibited from receiving and holding funds from borrowers.
Member States should ensure that:
- within 90 days of receipt of a complete application or, the competent authorities of the home Member State notify the applicant whether the authorisation is granted or refused and provide reasons for refusal;
- the competent authorities of the home Member State have the necessary supervisory and investigatory powers, and sanctioning powers to withdraw the authorisation granted to a credit servicer, where any of the following applies to such a credit servicer.
Protection of borrowers
Member States should require that credit purchasers and credit servicers, in their relationships with borrowers: (i) act in good faith, fairly and professionally; (ii) provide information to borrowers that is not misleading, unclear or false; (iii) respect and protect the personal information and privacy of borrowers; (iv) communicate with borrowers in a way that does not constitute harassment, coercion or undue influence.
In advance of the first debt collection and whenever requested by borrowers, they should provide information to borrowers on, among others, the transfer that took place, the identification and contact details of the credit purchaser and of the credit servicer, where one is appointed, as well as information on the amounts due by the borrower and a statement to the effect that all relevant Union and national law continues to apply.
Credit purchasers
Credit institutions should provide detailed information to prospective credit purchasers so as to enable them to conduct their own assessment of the value of a creditor’s rights under a non-performing credit agreement, or of the non-performing credit agreement itself.
The Directive provides that where a credit institution transfers non-performing credit agreements, it should be required to inform its competent authority and the competent authorities of the host Member State, on a biannual basis, of at least the aggregate outstanding balance of the transferred credit portfolios, as well as the number and size of the credits included and whether the transfer includes credit agreements concluded with consumers.
Freedom to provide credit servicing activities in a host Member State
To ensure the right of a credit servicer to engage in cross-border activities and to provide for their supervision, this Directive sets up a procedure for the exercise of the right of an authorised credit servicer to engage in cross-border activities. Communication between competent authorities of the home and the host Member States as well as with a credit servicer should take place within reasonable deadlines. The competent authorities of the Member State where the credit was granted should also receive information on cross-border activities from the competent authorities of the home Member State.
After the expiry of a period of six months following the deadline for transposition of the directive, only credit servicers authorised under the national laws transposing this Directive should be permitted to operate on the market.
Documents
2021/07/12
EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
Documents
2021/06/28
CSL - Coreper letter confirming interinstitutional agreement
Documents
2021/06/28
EP - Text agreed during interinstitutional negotiations
Documents
2021/01/20
EP - Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
2021/01/18
EP - Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
2021/01/14
EP - Vote in committee, 1st reading
2021/01/14
EP - Committee report tabled for plenary, 1st reading
Details
The Committee on Economic and Monetary Affairs adopted the report by Esther DE LANGE (EPP, NL) and Irene TINAGLI (S&D, IT) on the proposal for a directive of the European Parliament and of the Council on credit servicers, credit purchasers and the recovery of collateral.
The committee responsible recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission proposal as follows.
Objectives
The Directive should foster the development of secondary markets for non-performing loans (NPLs) in the EU by establishing safeguards and minimum requirements for the transfer of NPLs by credit institutions to non-credit institutions, while safeguarding borrowers’ rights.
This Directive should therefore establish a Union-wide framework for both purchasers and servicers of non-performing credit agreements issued by credit institutions, whereby credit servicers should obtain authorisation and be subject to the supervision of Member States’ competent authorities.
This Directive should be without prejudice to the rules governing credit origination in accordance with Union and national law, including in cases when credit servicers can be considered to engage in credit intermediation.
Creditors should not be allowed to transfer to third parties performing credit agreements concluded with consumers.
Conditions for granting an approval
The amended text specifies that the applicant should be a legal person having its registered office or head office in the Member State where it seeks authorisation.
In order to protect the debtor or borrower, the conditions for granting and maintaining authorisation should ensure that the credit manager or the members of the management or administrative bodies have a clean criminal record with regard to relevant criminal offences involving damage to property, criminal offences relating to financial activities, money laundering, fraud or offences against physical integrity and are not subject to insolvency proceedings or have never been declared bankrupt, unless they have been reinstated in accordance with national law.
Member States should also ensure that:
- the management body as a whole possesses adequate knowledge and experience to conduct the business in a competent and responsible manner, appropriate to the activity to be carried out;
- the applicant applies a policy ensuring compliance with consumer protection rules and transparency in the fair and diligent treatment of borrowers;
- the applicant has sufficient initial capital or segregated accounts and that there are no obstacles to effective supervision of the applicant arising from the structure of its group;
- the applicant has, where appropriate, adequate anti-money laundering and anti-terrorism procedures in place.
Protection of borrowers
A new article stipulates that in their relations with debtors, creditors should act in good faith, fairly, professionally and with respect for the debtors' privacy. They should provide borrowers with information that is not misleading, refrain from disclosing personal information without the borrower's permission, and refrain from communicating with borrowers in a manner that constitutes harassment, coercion or abuse of influence.
Fees and penalties charged to borrowers by creditors should not exceed the costs directly related to debt management. Prior to any debt collection, the creditor should send the borrower a mandatory notification providing clear proof of the debt, based on a credit agreement falling within the scope of the Directive.
Member States should require that creditors undertake, with due diligence, to make best efforts to exercise, where appropriate, reasonable forbearance in respect of borrowers experiencing payment difficulties.
Credit purchasers
The amended text provides that where a credit institution transfers a non-performing credit agreement, they should be required to inform their supervisor and the competent authority for supervising compliance with this Directive, on a biannual basis, about at least the aggregated outstanding balance of the transferred credit portfolios, as well as the number and size of the loans included and whether it includes agreements concluded with consumers.
For each portfolio transferred in a single transaction, information provided should include the legal entity identifier or, when not available, the identity and address of the purchaser and, where applicable, its representative in the EU.
Transposition
Entities currently carrying out credit servicing activities under national law would be allowed to continue to do so in their home Member State for 6 months after the deadline for transposition of the Directive.
After the expiry of that six month period, only credit servicers authorised under the national laws implementing this Directive will be able to operate on the market.
Documents
2021/01/14
EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2019/12/20
EP - Amendments tabled in committee
Documents
2019/11/29
EP - Committee draft report
Documents
2019/10/21
EP - Committee referral announced in Parliament, 1st reading
2019/07/18
EP - DE LANGE Esther (EPP) appointed as rapporteur in ECON
2019/07/18
EP - TINAGLI Irene (S&D) appointed as rapporteur in ECON
2018/11/20
ECB - European Central Bank: opinion, guideline, report
Details
OPINION of the European Central Bank on a proposal for a directive on credit servicers, credit purchasers and the recovery of collateral.
The ECB recalls that it has been a strong proponent of the development of secondary markets for bank assets, particularly non-performing loans (NPLs). It believes that the development of secondary markets may contribute to reducing NPLs, and that, well-functioning secondary markets may also prevent stocks of NPLs from building up in the future. The ECB considers it essential that the legal framework applicable to secondary markets enables the efficient transfer of NPLs off the balance sheet of credit institutions.
It makes the following observations:
Reporting requirements
The proposed directive establishes a number of reporting requirements for credit servicers, credit purchasers and credit institutions. The Union legislators should carefully consider whether these reporting requirements would impede the efficient functioning of the secondary market for NPLs, since a significant reporting burden could deter new entrants to the market or result in duplication of data for competent authorities.
Technical standards for NPL data
The proposed directive gives the European Banking Authority (EBA) a mandate to develop draft implementing technical standards that specify the formats to be used by creditors that are credit institutions for the provision of detailed information on their credit exposures in the banking book to credit purchasers for the screening, financial due diligence and the valuation of the credit agreement.
In the light of the new regulatory developments flowing from Regulation (EU) 2016/867, it is important that any data templates developed by the EBA should take into account the collection of granular credit and credit risk data or any other relevant initiatives to ensure that there is no duplication of efforts and to minimise reporting requirements for credit institutions.
Data collection by competent authorities in the context of an accelerated extrajudicial collateral enforcement mechanism
Since the collection of this information relates to the efficacy of the accelerated extrajudicial collateral enforcement mechanism rather than the prudential supervision of credit institutions, the Union legislators would need to clarify that the task to collect such information should not be conferred on the ECB.
Documents
2018/04/19
EP - Committee referral announced in Parliament, 1st reading
2018/03/14
EC - Legislative proposal
Documents
2018/03/14
EC - Document attached to the procedure
Documents
2018/03/14
EC - Document attached to the procedure
Documents
2018/03/14
EC - Legislative proposal published
Documents
Documents
- Commission response to text adopted in plenary: SP(2021)728
- Final act published in Official Journal: Directive 2021/2167
- Final act published in Official Journal: OJ L 438 08.12.2021, p. 0001
- Draft final act: 00054/2021/LEX
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament, 1st reading: T9-0424/2021
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE691.247
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: GEDA/A/(2021)005234
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2021)005234
- Text agreed during interinstitutional negotiations: PE691.247
- Committee report tabled for plenary, 1st reading: A9-0003/2021
- Amendments tabled in committee: PE645.006
- Committee draft report: PE644.827
- European Central Bank: opinion, guideline, report: CON/2018/0054
- European Central Bank: opinion, guideline, report: OJ C 444 10.12.2018, p. 0015
- Legislative proposal: COM(2018)0135
- Legislative proposal: EUR-Lex
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2018)0075
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2018)0076
- Legislative proposal published: COM(2018)0135
- Legislative proposal published: EUR-Lex
- Legislative proposal: COM(2018)0135 EUR-Lex
- Document attached to the procedure: EUR-Lex SWD(2018)0075
- Document attached to the procedure: EUR-Lex SWD(2018)0076
- European Central Bank: opinion, guideline, report: CON/2018/0054 OJ C 444 10.12.2018, p. 0015
- Committee draft report: PE644.827
- Amendments tabled in committee: PE645.006
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2021)005234
- Text agreed during interinstitutional negotiations: PE691.247
- Draft final act: 00054/2021/LEX
- Commission response to text adopted in plenary: SP(2021)728
Votes
Gestionnaires de crédits et acheteurs de crédits - Credit servicers and credit purchasers - Kreditdienstleister und Kreditkäufer - A9-0003/2021 - Esther de Lange, Irene Tinagli - Rejet - Am 3 #
2021/10/19 Outcome: -: 517, +: 156, 0: 27
The Left
NI
PPEGestionnaires de crédits et acheteurs de crédits - Credit servicers and credit purchasers - Kreditdienstleister und Kreditkäufer - A9-0003/2021 - Esther de Lange, Irene Tinagli - Accord provisoire - Am 2 #
2021/10/19 Outcome: +: 477, -: 138, 0: 85
| Amendments | Dossier |
| 265 |
2018/0063A(COD)
2020/01/07
ECON
265 amendments...
Amendment 204 #
Proposal for a directive – The European Parliament rejects [the Commission proposal].
Amendment 205 #
Proposal for a directive Recital 1 a (new) (1a) Vast amounts of NPLs are the consequence of millions of EU citizens under financial difficulties and over- indebted households. The core causes of this private over-indebtedness are the irresponsible lending activities, bubbles in the real estate market, and the lack of measures for the early identification of households at risk. The financial difficulties of indebted households are not only threatening the stability of the financial system but are, above all, individual human tragedies which need to be avoided by all means. There is evidence of poor credit servicers’ practices, harassment and intimidation practices, including from debtors who report pressure to make unaffordable repayments. The sector is not adequately regulated in all Member States and regulation has frequently proven inadequate.
Amendment 206 #
Proposal for a directive Recital 1 b (new) (1b) The recovery of the collateral in the case of mortgage loans affects the right of housing assistance and a decent existence for all those who lack sufficient resources, enshrined in the EU Charter on fundamental rights, as well as constitutional rights related with housing in many Member States.
Amendment 207 #
Proposal for a directive Recital 1 c (new) (1c) Abuses in certain markets make necessary to establish a code of conduct with strict rules for credit servicers and credit purchasers to avoid misleading practices, harassment or the violation of consumer’s rights.
Amendment 208 #
(1d) Further transparency is needed in order to monitor the market reaction to the new framework. EBA shall establish and maintain a public register, with available data about the actors operating and the number and amount of the operations.
Amendment 209 #
Proposal for a directive Recital 2 (2)
Amendment 210 #
Proposal for a directive Recital 2 (2) An integrated financial system will enhance the resilience of the Economic and Monetary Union to adverse shocks by facilitating private cross-border risk- sharing, while at the same time reducing the need for public risk-sharing. In order to achieve these objectives, the Union should complete the Banking Union and further develop a Capital Markets Union (CMU). Addressing high stocks of NPLs and their possible future accumulation is essential to strengthening the Banking Union through cleaning the balance sheets of the banks by all member states themselves prior to completing of the Banking Union, as it is essential for ensuring competition in the banking sector, preserving financial stability and encouraging lending so as
Amendment 211 #
Proposal for a directive Recital 2 (2) An integrated financial system will enhance the resilience of the Economic and Monetary Union to adverse shocks by facilitating private cross-border risk- sharing, while at the same time reducing the need for public risk-sharing. In order to achieve these objectives, the Union should complete the Banking Union and further develop a Capital Markets Union (CMU). Addressing high stocks of NPLs and their possible future accumulation is essential to
Amendment 212 #
Proposal for a directive Recital 3 (3) In July 2017 the Council in its "Action Plan to Tackle Non-Performing Loans in Europe"25 called upon various institutions to take appropriate measures to further address the high number of existing NPLs in the Union prevent new NPLs from accumulating and posing financial stability risks. The Action Plan sets out a comprehensive approach that focuses on a mix of complementary policy actions in four areas: (i) bank supervision and regulation (ii) reform of restructuring, insolvency and debt recovery frameworks, (iii) developing secondary markets for distressed assets, and (iv) fostering restructuring of the banking system. Actions in these areas are to be taken at national level and at Union level where appropriate. The Commission announced a similar intention in its "Communication on completing the Banking Union" of 11 October 201726 , which called for a comprehensive package on tackling NPLs within the Union. _________________ 2511/07/2017, http://www.consilium.europa.eu/en/press/p ress-releases/2017/07/11/conclusions-non- performing-loans/pdf. 26Communication to the European Parliament, the Council, the European
Amendment 213 #
Proposal for a directive Recital 3 (3) In July 2017 the Council in its "Action Plan to Tackle Non-Performing Loans in Europe"25 called upon various institutions to take appropriate measures to further address the high number of NPLs in the Union and to avoid long-run increases of NPLs in the future. The Action Plan sets out a comprehensive approach that focuses on a mix of complementary policy actions in four areas: (i) bank supervision and regulation (ii) reform of restructuring, insolvency and debt recovery frameworks, (iii) developing secondary markets for distressed assets, and (iv) fostering restructuring of the banking system. Actions in these areas are to be taken at national level and at Union level where appropriate. The Commission announced a similar intention in its "Communication on completing the Banking Union" of 11 October 201726 , which called for a comprehensive package on tackling NPLs within the Union. _________________ 2511/07/2017, http://www.consilium.europa.eu/en/press/p ress-releases/2017/07/11/conclusions-non- performing-loans/pdf. 26Communication to the European Parliament, the Council, the European Central Bank, the European Economic and
Amendment 214 #
Proposal for a directive Recital 4 a (new) (4a) In the process of developing macro-prudential approaches to prevent the emergence of system-wide risks associated with NPLs, the European Systemic Risk Board shall develop appropriate macro-prudential standards and supervision of the other financial institutions involved in the secondary market for NPLs. These regulatory measures will ensure that such institutions are required to meet the same standards as banks, including in relation to prudential requirements, disclosure requirements and the fair treatment of borrowers. These institutions shall also be bound by all relevant national and EU consumer protection requirements that may be applicable.
Amendment 215 #
Proposal for a directive Recital 5 (5) Credit institutions will be required
Amendment 216 #
Proposal for a directive Recital 5 (5) Credit institutions will be required to put aside sufficient resources when new loans become non- performing, which should create appropriate incentives to address NPLs at an early stage and should prevent an excessive accumulation of them. Where loans become non- performing, more efficient
Amendment 217 #
Proposal for a directive Recital 6 Amendment 218 #
Proposal for a directive Recital 6 Amendment 219 #
Proposal for a directive Recital 7 Amendment 220 #
Proposal for a directive Recital 9 (9) This Directive should
Amendment 221 #
Proposal for a directive Recital 9 (9) This Directive should foster the development of secondary markets for NPLs in the Union by removing impediments to the transfer of NPLs by credit institutions to non-credit institutions, while at the same time safeguarding consumers' rights, particularly legal protection for mortgage-holders against eviction from primary residences. Any proposed measure should also simplify and harmonise the authorisation requirements for credit servicers. This Directive should therefore establish a Union-wide framework for both purchasers and servicers of credit agreements issued by credit institutions.
Amendment 222 #
Proposal for a directive Recital 9 (9) This Directive should
Amendment 223 #
Proposal for a directive Recital 9 (9) This Directive should foster the development of secondary markets for NPLs in the Union by removing impediments to the transfer of NPLs by credit institutions to non-credit institutions, while at the same time ensuring a high level of consumer protection and safeguarding consumers' rights. Any proposed measure should also simplify and harmonise the authorisation requirements for credit servicers. This Directive should therefore establish a Union-wide framework for both purchasers and servicers of credit agreements issued by credit institutions.
Amendment 224 #
Proposal for a directive Recital 9 a (new) (9a) Other financial institutions active in the secondary market should take into account the interests of consumers and comply with all relevant national and EU consumer protection requirements, including those set out in Article 28 of Directive 2014/17/EU1a, in the EBA guidelines on arrears and foreclosure and in the EBA final guidelines on the management of non-performing and forborne exposures. _________________ 1aDirective 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, p. 34–85).
Amendment 225 #
Proposal for a directive Recital 9 b (new) (9b) Forbearance measures should aim to return the borrower to a sustainable performing repayment status, having regard to the fair treatment of the consumer and to all relevant national and EU consumer protection requirements that may be applicable. When deciding on which steps or forbearance measures to take, credit institutions should take into account the interests of consumers and comply with consumer protection requirements, including those set out in Article 28 of Directive 2014/17/EU, in the EBA Guidelines on arrears and foreclosure and in the EBA final guidelines on the on management of non- performing and forborne exposures.
Amendment 226 #
Proposal for a directive Recital 9 c (new) (9c) Forbearance measures may include the following concessions to the consumer: (a) a total or partial refinancing of a credit agreement; (b) a modification of the previous terms and conditions of a credit agreement, which may include among others: i. extending the term of the mortgage; ii. changing the type of the mortgage (such as, changing the type of mortgage from a capital and interest mortgage to an interest only mortgage); iii. deferring payment of all or part of the instalment repayment for a period; iv. changing the interest rate up to a certain cap; v. offering a payment holiday.
Amendment 227 #
Proposal for a directive Recital 10 Amendment 228 #
Proposal for a directive Recital 11 a (new) (11a) A non-performing credit agreement is an exposure that shall be classified as non-performing according to Article 47a of the Regulation (EU) No2019/630 of 17 April 2019 amending Regulation (EU) No 575/2013 as regards minimum loss coverage for non- performing exposures.
Amendment 229 #
Proposal for a directive Recital 12 a (new) (12a) There are currently no common minimum standards at European level to regulate credit servicing activities. Moreover, no common standards are currently laid down to regulate the activities related to debt collection.
Amendment 230 #
Proposal for a directive Recital 12 a (new) (12a) There are currently no common minimum standards at European level to regulate credit servicing activities. Moreover, no common standards are currently laid down to regulate the activities related to debt collection.
Amendment 231 #
Proposal for a directive Recital 15 Amendment 232 #
Proposal for a directive Recital 16 (16) Therefore, action at Union level is necessary in order to address the position of credit purchasers and credit servicers in relation to non-performing credit originally granted by credit institutions. This Directive is also without prejudice to the national rules imposing additional requirements for the credit purchaser or the credit servicer as concerns the renegotiation of the terms and conditions under a credit agreement. It is not proposed to cover credit originally issued by non-credit institutions or debt collection in general at this stage, as there is no evidence of macroeconomic relevance, misaligned incentives or ill-functioning markets for such an extended scope.
Amendment 233 #
Proposal for a directive Recital 16 (16) Therefore, action at Union level is necessary in order to address the protection of the borrowers as well as the sustainability of the banking system and the position of credit purchasers and credit servicers in relation to credit originally granted by credit institutions. It is not proposed to cover credit originally issued by non-credit institutions or debt collection in general at this stage, as there is no evidence of macroeconomic relevance, misaligned incentives or ill-functioning markets for such an extended scope.
Amendment 234 #
Proposal for a directive Recital 16 a (new) (16a) Similarly, the Directive does not affect the restrictions in national laws regarding transfer of creditor´s rights under a non-performing credit agreement or the credit agreement itself that is not terminated in accordance with national civil law with the effect that all amounts payable under the credit agreement become immediately due, where this is required for the transfer to an entity outside the banking system. This way, there will be Member States where, taking into account the national rules, the acquisition of non-performing credit agreements that are not past due, are less than 90 days past due or are not terminated in accordance with national civil law by non-regulated creditors will remain limited. It is open to Member States to regulate the transfer of performing credit agreements, including by imposing requirements equivalent to those under this Directive.
Amendment 235 #
Proposal for a directive Recital 16 a (new) (16a) Entities engaging in credit servicing activities shall be subject to the same rules, be it specialised credit servicers, banking institutions or credit purchasers. This could be a direct consequence of subjecting credit servicing activities to MiFID rules.
Amendment 236 #
Proposal for a directive Recital 17 (17) Although the purpose of this Directive is to protect consumers' rights and to strengthen the credit institutions' capacity to deal with credit that has become non-performing or risks becoming non-performing, the secondary market for credit covers both performing and non- performing credit. Actual market sales encompass credit portfolios, consisting of
Amendment 237 #
(17a) To guarantee a well-functioning internal market of loans and a high level of consumer protection Member States should ensure a good reputation of credit purchasers. This is important to avoid consumer harm on this market, such as the use of threatening or abusive language or behaviour or of threats to consumers and their families.
Amendment 238 #
Proposal for a directive Recital 18 (18) The importance placed by the Union legislature on the protection provided for consumers in Directive 2014/17/EU of the European Parliament and of the Council29
Amendment 239 #
Proposal for a directive Recital 18 (18) The importance placed by the Union legislature on the protection provided for consumers in Directive 2014/17/EU of the European Parliament and of the Council29 , Directive 2008/48/EC of the European Parliament and of the Council30 and Council Directive 93/13/EEC31 means that the assignment of the creditor's rights under a credit agreement or of the agreement itself to a credit purchaser should not affect the level of protection granted by Union law to consumers in any way.
Amendment 240 #
Proposal for a directive Recital 18 (18) The importance placed by the Union legislature on the protection provided for consumers in Directive 2014/17/EU of the European Parliament and of the Council29 , Directive 2008/48/EC of the European Parliament
Amendment 241 #
Proposal for a directive Recital 18 a (new) (18a) This Directive is without prejudice to the protection of consumers guaranteed by Directive 2005/27/EC of the European Parliament and of the Council that prohibits unfair practices including those during enforcement of a contract whereby the consumer is misled as to their rights or obligations; or is subject to harassment or coercion for instance in terms of the timing, location, nature or persistence of enforcement actions or contacts, the use of threatening or abusive language or behaviour or of threats to take any action that cannot legally be taken.
Amendment 242 #
Proposal for a directive Recital 20 (20) In order to ensure a high level of consumer protection, Union and national law provide for a number of rights and safeguards related to credit agreements
Amendment 243 #
Proposal for a directive Recital 20 a (new) (20a) Residential mortgages for primary residences must be excluded from the scope of this Directive.
Amendment 244 #
Proposal for a directive Recital 20 b (new) (20b) Under this Directive, a non- performing loan secured by the mortgage of a residential property must not be transferred without the written consent of the borrower.
Amendment 245 #
Proposal for a directive Recital 22 (22) Union credit institutions
Amendment 246 #
Proposal for a directive Recital 23 (23) In order to allow existing credit purchasers and credit servicers to adapt to the requirements of the national provisions implementing this Directive and, in particular, to allow credit servicers to be authorised, this Directive will only apply to transfers of credit agreements that take place six months after the transposition deadline has expired and only after the creditor has given to distressed borrowers the right to buy back their debt at the same price.
Amendment 247 #
Proposal for a directive Recital 24 (24) The authorisation of a credit
Amendment 248 #
Proposal for a directive Recital 24 a (new) (24a) Credit purchasers should also be subject to authorisation to provide credit servicing activities throughout the Union to ensure that those who hold a legal title to credit granted under the credit agreement are regulated by the competent authorities and are subject to a uniform and harmonised set of conditions that should be applied in a proportionate manner by the competent authorities. The conditions for granting and maintaining an authorisation for a credit purchaser should be the same as those for a credit servicer. Credit purchasers should be obliged to act fairly and with due consideration for the financial situation of the borrowers. Where debt advice services facilitating debt repayment are available at national level, the credit purchasers should consider referring borrowers to such services.
Amendment 249 #
Proposal for a directive Recital 25 (25) To avoid lengthy procedures and uncertainty, it is necessary to establish requirements regarding the information applicants are required to submit, as well as the reasonable deadlines for the issue of an authorisation and the circumstances for its withdrawal of authorisation. Where authorities withdraw an authorisation of a credit servicer or a credit purchaser which provides credit
Amendment 250 #
Proposal for a directive Recital 30 (30) An important prerequisite for the taking up of the role by credit purchasers and credit servicers should be that they can access all relevant information and Member State should ensure that this is possible, while at the same time observing Union and national data protection rules.
Amendment 251 #
Proposal for a directive Recital 31 (31) Where a credit institution transfers a credit agreement, they should be required to inform their supervisor and the competent authority for supervising compliance with this Directive
Amendment 252 #
Proposal for a directive Recital 32 (32) As part of the Council's Action Plan, credit institutions' data infrastructure would be strengthened by having uniform
Amendment 253 #
Proposal for a directive Recital 33 (33) Since the valuation of a portfolio of non-performing credit is complicated and complex, actual buyers on secondary markets are sophisticated investors. Often they are investment funds, financial institutions or credit institutions. As they are not creating new credit, but are buying existing credit at own risk, they do not cause prudential concerns and their potential contribution to systemic risk is negligible. It is therefore not justified to
Amendment 254 #
Proposal for a directive Recital 34 (34) Third-country credit purchasers may make it harder for the Union consumer to rely on their rights under Union law and for the national authorities to supervise the enforcement of the credit agreement. Credit institutions may also be discouraged from transferring such credit agreements to third-country credit purchasers because of the reputational risk involved.
Amendment 255 #
Proposal for a directive Recital 34 a (new) (34a) Credit purchasers generally rely on a short-term business model that specialises in purchasing distressed debt at a large discount and attempting to procure the underlying asset as quickly as possible. As it is the credit purchaser that makes the key decisions regarding the distressed loan, including on the setting of interest rates, whether to restructure a loan, and the enforcement of the loan, it is crucial that the credit purchaser - and not only the credit servicer that acts as an intermediary - is authorised and regulated in the Union, and subject to supervision, investigation and sanctions by the national competent authorities in the Member State in which it operates.
Amendment 256 #
Proposal for a directive Recital 34 a (new) (34a) When a credit purchaser manages and enforces the rights and obligations related to the creditor’s rights under a credit agreement or the credit agreement itself, he is considered to be a credit servicer, and should therefore be authorised under the rules laid down in this directive.
Amendment 257 #
Proposal for a directive Recital 52 (52) Without prejudice to pre- contractual obligations under Directive 2014/17EU, Directive 2008/48/EC and Directive 93/13/EEC, and in order to ensure a high level of consumer protection, the consumer should be presented, in due time and prior to any substantial modifications to the terms and conditions of the credit agreement, with a clear and comprehensive list of any such changes, the timescale for their implementation and the necessary details as well as the name and address of the national authority where he or she may lodge a complaint.
Amendment 258 #
Proposal for a directive Recital 53 a (new) (53a) In order to achieve a sufficient level of borrower protection and to address debt collection malpractice, harmonised EU regulation should ensure that the costs and remuneration of credit servicers are never charged to borrowers.
Amendment 259 #
Proposal for a directive Recital 54 a (new) (54a) Member States shall ensure that behaviour or practices that are likely to negatively impact on borrower privacy and/or human dignity, or are likely to mislead them are prohibited. Practices that can be considered as harassment include sending excessive numbers of dunning letters, using intimidating language, using stigmatizing envelopes, visiting the borrower during working hours or at the workplace, or contacting their colleagues or family members. These practices can aggravate the borrower's situation causing possible loss of employment and reduce their capacity to repay a debt.
Amendment 260 #
Proposal for a directive Article 1 – paragraph 1 – introductory part This Directive applies to non-performing loans with the exception of secured and unsecured credit agreements concluded between creditors and consumers as defined in Article 3(a) of Directive 2008/48/EC. This Directive lays down a common framework and requirements for:
Amendment 261 #
Proposal for a directive Article 1 – paragraph 1 – introductory part This Directive relates to non-performing credit agreements and lays down a common framework and requirements for:
Amendment 262 #
Proposal for a directive Article 1 – paragraph 1 – point a (a) credit servicers
Amendment 263 #
Proposal for a directive Article 1 – paragraph 1 – point a (a) credit servicers
Amendment 264 #
Proposal for a directive Article 1 – paragraph 1 – point a (a) credit servicers acting on behalf of a credit institution or a credit purchaser in respect of a non-performing credit agreement issued by a credit institution
Amendment 265 #
Proposal for a directive Article 1 – paragraph 1 – point b (b) credit purchasers of a credit
Amendment 266 #
Proposal for a directive Article 1 – paragraph 1 – point b (b) credit purchasers of a non- performing credit agreement issued by a credit institution
Amendment 267 #
Proposal for a directive Article 1 – paragraph 1 – point c Amendment 268 #
Proposal for a directive Article 1 – paragraph 1 – point c Amendment 269 #
Proposal for a directive Article 1 – paragraph 1 – point c a (new) (ca) creditors prior to the transfer of creditor’s rights under a credit agreement or the credit agreement.
Amendment 270 #
Proposal for a directive Article 1 – paragraph 1 a (new) This Directive relates to non-performing credit agreements only. Creditors shall not be allowed to transfer to third parties performing credit agreements concluded with consumers.
Amendment 271 #
Proposal for a directive Article 1 – paragraph 1 a (new) This Directive relates to non-performing credit agreements. Creditors shall not be allowed to transfer to third parties performing credit agreements concluded with consumers.
Amendment 272 #
Proposal for a directive Article 1 – paragraph 1 a (new) This Directive relates to non-performing credit agreements. Creditors shall not be allowed to transfer to third parties performing credit agreements concluded with consumers.
Amendment 273 #
Proposal for a directive Article 1 – paragraph 1 a (new) Creditors shall not be allowed to transfer to third parties performing credit agreements concluded with consumers.
Amendment 274 #
Proposal for a directive Article 2 – paragraph 1 – point a (a)
Amendment 275 #
Proposal for a directive Article 2 – paragraph 1 – point b (b)
Amendment 276 #
Proposal for a directive Article 2 – paragraph 2 Amendment 277 #
Proposal for a directive Article 2 – paragraph 2 a (new) 2a. This Directive shall not apply to credit agreements concluded between creditors and borrowers who are consumers, secured by immovable residential property, which is the primary residence of the borrower.
Amendment 278 #
Proposal for a directive Article 2 – paragraph 2 a (new) 2a. This Directive shall not apply to consumer non-performing credit agreements. Creditors shall not be allowed to transfer to third parties performing credit agreements concluded with consumers.
Amendment 279 #
Proposal for a directive Article 2 – paragraph 3 3.
Amendment 280 #
Proposal for a directive Article 2 – paragraph 3 a (new) 3a. This Directive shall not affect the [existing] restrictions in the Member States' national laws regarding the transfer of creditor’s rights under a non- performing credit agreement that are not past due, or are less than 90 days past due or are not terminated in accordance with national civil law, or the transfer of creditor’s rights under such a non- performing credit agreement.
Amendment 281 #
Proposal for a directive Article 2 – paragraph 3 a (new) 3a. This Directive shall not affect the restrictions in the Member States' national laws regarding the transfer of creditor’s rights under a non-performing credit agreement that is not past due, or is less than 90 days past due or is not terminated in accordance with national civil law, or the transfer of such a non- performing credit agreement.
Amendment 282 #
Proposal for a directive Article 2 – paragraph 3 a (new) 3a. This Directive shall not affect the requirements in the Member States' national laws regarding the servicing of creditor’s rights under a credit agreement or of the credit agreement itself, when the credit purchaser is a securitisation special purpose entity, as defined in Article 2 (2) of Regulation (EU) 2017/2402.
Amendment 283 #
Proposal for a directive Article 2 – paragraph 3 b (new) 3b. This Directive shall not affect the requirements in the Member States' national laws regarding the servicing of creditor’s rights under a credit agreement or of the credit agreement itself, when the credit purchaser is a securitisation special purpose entity, as defined in Article 2(2) of Regulation (EU) 2017/2402.
Amendment 284 #
Proposal for a directive Article 2 – paragraph 4 Amendment 285 #
Proposal for a directive Article 2 – paragraph 4 – point a (a) the servicing of a credit agreement carried out by a credit institution established in the Union or its subsidiaries established in the Union; an AIFM as defined in point (b) of Article 4(1) of Directive2011/61/EU; a management company as defined in point (b) of Article 2(1) in Directive 2009/65/EC; or an investment firm as defined in point (1) of Article 4(1) of Directive 2014/65/EU;
Amendment 286 #
Proposal for a directive Article 2 – paragraph 4 – point c a (new) (ca) the purchase of a credit agreement by a credit institution or non-credit institution which has been involved in a tax avoidance or tax evasion case in any Member State of the EU;
Amendment 287 #
Proposal for a directive Article 2 – paragraph 4 – point d (d) the transfer of creditor’s rights or the credit agreement
Amendment 288 #
Proposal for a directive Article 2 – paragraph 4 a (new) 4a. Member States may exempt from the application of this Directive the servicing of creditor’s rights under a credit agreement or the credit agreement itself carried out by members of a legal profession, subject to the supervision of each Member State, such as public notaries and bailiffs as defined by national law or lawyers as defined in point (a) of Article 1(2) of Directive 98/5/EC of the European Parliament and of the Council36a, when conducting activities referred to in Article 3(9) of this Directive as part of their profession.
Amendment 289 #
Proposal for a directive Article 2 – paragraph 4 a (new) 4a. Articles 5, 6 and 7 of this Directive shall not apply to credit institutions or their subsidiaries established in the Union. When transposing the provisions of this Directive, Member States shall avoid any duplications of requirements for credit institutions under Directive 2014/17/EU, Directive 2008/48/EC, and Directive 2013/36/EC .
Amendment 290 #
Proposal for a directive Article 2 – paragraph 5 Amendment 291 #
Proposal for a directive Article 2 – paragraph 5 – point a Amendment 292 #
Proposal for a directive Article 2 – paragraph 5 a (new) 5a. Articles 4 to 15(1), 16 to 22 and 34 to 37 of this Directive shall not apply to (a) performing loans; and (b) syndicated loan arrangements.
Amendment 293 #
Proposal for a directive Article 3 – paragraph 1 – point 3 (3) 'borrower' means a legal or natural person, other than a consumer, who has concluded a credit agreement with a creditor;
Amendment 294 #
Proposal for a directive Article 3 – paragraph 1 – point 3 a (new) (3a) “borrower under payment difficulties” means a natural or legal person who has concluded a credit agreement that has been qualified or is likely to be qualified as “non- performing” in the meaning of point 9a;
Amendment 295 #
Proposal for a directive Article 3 – paragraph 1 – point 5 (5) 'credit agreement' means an agreement by a credit institution or any other creditor as originally issued, modified or replaced, whereby a creditor grants or promises to grant a credit in the form of a deferred payment, a loan or other similar financial accommodation
Amendment 296 #
Proposal for a directive Article 3 – paragraph 1 – point 7 (7) 'credit purchaser' means any natural or legal person
Amendment 297 #
Proposal for a directive Article 3 – paragraph 1 – point 7 a (new) Amendment 298 #
Proposal for a directive Article 3 – paragraph 1 – point 8 Amendment 299 #
Proposal for a directive Article 3 – paragraph 1 – point 8 – introductory part (8)
Amendment 300 #
Proposal for a directive Article 3 – paragraph 1 – point 8 – point e a (new) (ea) handles any activities related to debt collection;
Amendment 301 #
Proposal for a directive Article 3 – paragraph 1 – point 8 – point f Amendment 302 #
Proposal for a directive Article 3 – paragraph 1 – point 8 – point f a (new) (fa) handles any activities related to debt collection;
Amendment 303 #
Proposal for a directive Article 3 – paragraph 1 – point 9 a (new) (9a) A 'business to borrower credit servicer' means any natural or legal person, other than a credit institution or its subsidiaries, which carries out one or more of the following activities on behalf of a creditor of a borrower: (a) monitors the performance of the credit agreement; (b) collects and manages information about the status of the credit agreement, of the borrower and of any collateral used to secure the credit agreement; (c) informs the borrower of any changes in interest rates, charges or of payments due under the credit agreement; (d) enforces the rights and obligations under the credit agreement on behalf of the creditor, including administering repayments; (e) renegotiates the terms and conditions of the credit agreement with borrowers, where they are not a 'credit intermediary' as defined in Article 4(5) of Directive 2014/17/EU or Article 3(f) of Directive 2008/48/EC; (f) handles any activities related to debt collection.
Amendment 304 #
Proposal for a directive Article 3 – paragraph 1 – point 11 a (new) (11a) a ‘non-performing credit agreement’ means an exposure that is classified as non-performing in accordance with Article 47a of Regulation (EU) 575/2013.
Amendment 305 #
Proposal for a directive Article 3 – paragraph 1 – point 11 a (new) (11a) ‘non-performing credit agreement’ means a credit agreement that is classified as non-performing exposure in accordance with Regulation (EU) No 575/2013.
Amendment 306 #
Proposal for a directive Article 3 a (new) Article 3a Forbearance measures and foreclosure 1. Creditors shall make every effort to avoid transferring consumer non- performing loans to third parties. Notably, Member States shall ensure that creditors exercise reasonable forbearance towards the distressed borrowers, in accordance with Article 28 of Directive 2014/17/EU and the EBA guidelines on arrears and foreclosure EBA/GL/2015/12. 2. Forbearance measures may include the following concessions to the consumer: (a) a total or partial refinancing of a credit agreement; (b) a modification of the previous terms and conditions of a credit agreement, which may include among others: i. extending the term of the mortgage; ii. changing the type of the mortgage (such as, changing the type of mortgage from a capital and interest mortgage to an interest only mortgage); iii. deferring payment of all or part of the instalment repayment for a period; iv. changing the interest rate up to a certain cap; v. offering a payment holiday. 3. Definition of non-performing loans adopted by the Commission Implementing Regulation (EU) 2015/227 shall be without prejudice to the creditors’ forbearance obligations. 4. In case of foreclosure, when the credit is secured by the consumer’s primary residence, return or transfer to the creditor or a third-party of the security or proceeds from the sale of the security shall be sufficient to repay the credit. Article 28(4) of Directive 2014/17/EU shall be amended accordingly.
Amendment 307 #
Proposal for a directive Article 3 a (new) Amendment 308 #
Proposal for a directive Article 3 b (new) Article 3b Exclusion of primary residences Residential mortgages for primary residences are excluded from the scope of this Directive.
Amendment 309 #
Proposal for a directive Article 3 c (new) Article 3c Borrower protection A sufficient level of borrower protection shall be ensured at all times. Credit servicers dealing with borrowers must comply with the specific requirements laid down in this Directive.
Amendment 310 #
Proposal for a directive Title 2 – chapter 1 – title Authorisation of credit servicers and credit purchasers
Amendment 311 #
1a. Member States shall be able to maintain the existing national measures aiming at protecting distressed borrowers, as well to adopt stricter measures, such as personal insolvency measures, restriction of the activity of credit servicers and credit purchasers.
Amendment 312 #
Proposal for a directive Article 4 – paragraph 1 a (new) 1a. Member States shall require a credit purchaser to obtain an authorisation in a home Member State before commencing its activities within its territory in accordance with the requirements set out in the national provisions transposing this Directive.
Amendment 313 #
Proposal for a directive Article 5 – paragraph 1 – introductory part 1. Member States shall lay down the following requirements for the granting of an authorisation as referred to in Article 4(1) and Article 4(1a):
Amendment 314 #
Proposal for a directive Article 5 – paragraph 1 – point a a (new) (aa) Credit servicers and credit purchasers shall act in good faith, treat consumers fairly and respect their privacy. The following practices shall be forbidden: i) provision of misleading information to consumers; ii) harassment of consumers, including communication of information about the consumers’ debt to their employer, family, friends and neighbours; iii) charging fees and penalties to consumers that exceed the costs directly related to the management of the debt. Member States shall place a cap on fees and penalties referred to in point (iii) according to the principles of fairness, rationality and proportionality.
Amendment 315 #
Proposal for a directive Article 5 – paragraph 1 – point b – introductory part (b)
Amendment 316 #
Proposal for a directive Article 5 – paragraph 1 – point b – point i (i)
Amendment 317 #
Proposal for a directive Article 5 – paragraph 1 – point b – point i (i) are of sufficiently good repute on the basis of Article 5a;
Amendment 318 #
Proposal for a directive Article 5 – paragraph 1 – point b – point i (i) are of sufficiently good repute, according to Article 135 of Directive 2006/48/CE and Article 13 of Guideline: EBA/CP/2013/03 EBA Consultation Paper on draft Guidelines for assessing the suitability of members of the management body and key function holders of a credit institution;
Amendment 319 #
Proposal for a directive Article 5 – paragraph 1 – point b – point ii (ii)
Amendment 320 #
Proposal for a directive Article 5 – paragraph 1 – point b – point iii (iii)
Amendment 321 #
Proposal for a directive Article 5 – paragraph 1 – point e a (new) (ea) the applicant has sufficient suitable employees who speak the language of the Member State where the credit servicer requests operation;
Amendment 322 #
Proposal for a directive Article 5 – paragraph 1 – point e a (new) (ea) the applicant has sufficient initial capital and adequate own funds and liquidity requirements;
Amendment 323 #
Proposal for a directive Article 5 – paragraph 1 – point e b (new) (eb) the applicant has adequate anti- money laundering and counter-terrorism procedures in place, where the home Member State national legislation transposing Directive 2015/849/EU designates credit servicers as obliged entities for the purposes of preventing and combating money laundering and terrorist financing;
Amendment 324 #
Proposal for a directive Article 5 – paragraph 1 – point e b (new) (eb) the applicant has sufficient suitable employees who speak the language of the Member State where the borrower resides at the time of concluding the credit agreement;
Amendment 325 #
Proposal for a directive Article 5 – paragraph 1 – point e c (new) Amendment 326 #
Proposal for a directive Article 5 – paragraph 1 – point e c (new) (ec) the applicant has adequate anti- money laundering and counter terrorism procedures in place, where the home or host Member State national legislation transposing Directive 2015/849/EU designates credit servicers as obliged entities for the purposes of preventing and combating money laundering and terrorist financing;
Amendment 327 #
Proposal for a directive Article 5 – paragraph 1 – point e d (new) (ed) there are no obstacles to the effective supervision of the applicant stemming from the structure of its group;
Amendment 328 #
Proposal for a directive Article 5 – paragraph 1 – point e e (new) (ee) applicant is subject by virtue of applicable national law to:
Amendment 329 #
Proposal for a directive Article 5 – paragraph 1 – point e f (new) (ef) robust governance arrangements, which include adequate internal control mechanisms and sound administration and accounting procedures;
Amendment 330 #
Proposal for a directive Article 5 – paragraph 1 – point e g (new) (eg) appropriate measures for taking up, managing, monitoring and mitigating the risks it is or might be exposed to;
Amendment 331 #
Proposal for a directive Article 5 – paragraph 1 – point e h (new) (eh) reporting and public disclosure requirements.
Amendment 332 #
Proposal for a directive Article 5 – paragraph 1 a (new) 1a. EBA shall issue draft regulatory technical standards to specify the conditions referred to in points (c), (d), (ec) and (ed) of paragraph 1, and the minimum requirements referred to in point (ee) of paragraph 1 of this Article. EBA shall submit those draft regulatory technical standards to the Commission by ... [one year after the entry into force of the Directive]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 333 #
Proposal for a directive Article 5 a (new) Amendment 334 #
Proposal for a directive Article 6 – paragraph 1 1. Member States shall establish a procedure for the authorisation of credit servicers and credit purchasers which enables an applicant to submit an application and provide all the information necessary for the competent authority of the home Member State to verify that the applicant has satisfied all the conditions laid down in the national measures transposing Article 5(1).
Amendment 335 #
Proposal for a directive Article 6 – paragraph 2 – point g a (new) (ga) evidence that the persons referred to in point (c) of this paragraph comply with the conditions laid down in points (ea) to (ee) of Article (1);
Amendment 336 #
Proposal for a directive Article 6 a (new) Amendment 337 #
Proposal for a directive Article 6 a (new) Article 6a Requirements for credit servicers, creditors and credit service providers on conduct of business and debt collection 1. Member States shall ensure that creditors, credit servicers and other credit service providers send the borrower before any debt collection a mandatory notification that provides without any ambivalence evidence of the debt, relied on a credit agreement. The debt notification must be exclusively made by a letter to the borrower in a white envelope without any specific writing and with acknowledgment of receipt. The notification shall not exceed 3 pages and include in clear and understandable for the general public language at least the following: (a) the evidence of the debt, relied on a credit contract (b) the identification of the creditor including its contact details; (c) where relevant, the identification of the credit servicer and its rights; (d) the legal base of the debts, the detailed amounts requested, and their source (capital, interest, penalties, procedural costs); (e) a key selection of borrowers’ rights description, including necessarily the protection against harassment and misleading behaviours; (f) a contact reference where to receive information and advice for borrowers under payment difficulties. 2. Member states shall ensure that no behaviour or practice causes damage to borrowers’ privacy. 3. Member states shall ensure that creditors or credit servicer refrain from: (a) omitting to deduct previous payments from the requested amount; (b) sending stigmatising, intimidating or misleading communications, including improper legal threats or information that may be misleading for the borrower; (c) contacting other persons than the borrower including borrowers’ relatives 4. EBA shall develop regulatory technical standards to specify the provisions of paragraphs 2 and 3. EBA shall submit those draft regulatory technical standards to the Commission by … [12 months after the date of entry into force of this Directive]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010. 5. EBA shall develop draft implementing technical standards that specify the mandatory format of the notification under paragraph 1. EBA shall submit those draft implementing technical standards to the Commission by [12 months from the entry into force of this Directive].
Amendment 338 #
Proposal for a directive Article 6 a (new) Article 6a Debt buy-back 1. When a credit institution intends to transfer a credit agreement to a credit purchaser at a specified price, before the transfer the credit institution shall allow the debtors concerned who are consumers to buy back their debt at the same price or with a small mark-up, which would be specified by the relevant competent authorities. For that purpose, credit institutions shall be required to disclose to the relevant competent authorities the necessary details of expected deals with credit purchasers. 2. Member States shall ensure that the buy-back option can be exercised in instalments.
Amendment 339 #
Proposal for a directive Article 7 – paragraph 1 – introductory part 1. Member States shall ensure that the competent authorities of the home Member State
Amendment 340 #
Proposal for a directive Article 7 – paragraph 1 – introductory part 1. Member States shall ensure that the competent authorities of the home Member State may withdraw the authorisation granted to a credit servicer or a credit purchaser, where such a credit servicer or a credit purchaser either:
Amendment 341 #
Proposal for a directive Article 7 – paragraph 1 – point c (c) has ceased to engage in the activities of a credit servicer for more than
Amendment 342 #
Proposal for a directive Article 7 – paragraph 1 – point f (f) commits a serious breach of the applicable rules, including the national law
Amendment 343 #
Proposal for a directive Article 7 – paragraph 1 – point f a (new) (fa) commits a serious breach of the applicable rules outlined in Article 6(a) (new).
Amendment 344 #
Proposal for a directive Article 7 – paragraph 1 a (new) 1a. Member States shall ensure that where competent authorities of the host Member State have determined that credit servicer acts in a way that falls under points e) and f) of the first subparagraph, they shall send a reasoned request to the competent authorities of the home Member State asking for the withdrawal of its authorisation. In case of disagreement between the competent authorities Article 12(11a) shall apply.
Amendment 345 #
Proposal for a directive Article 7 – paragraph 2 2. Where an authorisation is withdrawn in accordance with paragraph 1, Member States shall ensure that the competent authorities of the home Member State shall immediately inform the competent authorities in the host Member States if the credit servicer or credit purchaser provides services under Article 11.
Amendment 346 #
Proposal for a directive Article 8 – title Register of authorised credit servicers and EBA Register of secondary markets on NPLs
Amendment 347 #
Proposal for a directive Article 8 – paragraph 1 1. Member States shall ensure that competent authorities establish and
Amendment 348 #
Proposal for a directive Article 8 – paragraph 3 a (new) 3a. EBA in cooperation with national competent authorities shall establish and maintain a register of all transactions of non-performing loans in secondary market in the Union. The information registered for each transaction shall include the identity of the creditor, the credit purchaser, the credit servicer, the amount of the purchase denominated in euros, the original amount of the loan, and the number of loans included in each transaction.
Amendment 349 #
Proposal for a directive Article 8 – paragraph 3 b (new) 3b. A summarized version of the register shall be made available online and shall be updated on a yearly basis.
Amendment 350 #
Proposal for a directive Article 8 a (new) Article 8a Borrowers' protection 1. Member States shall require that credit servicers, in their relationship with the debtors, act in good faith, fairly, professionally and respect their privacy. 2. Member States shall ensure that credit services comply with the following requirements: (a) The information provided shall not be misleading, unclear or false; (b) Credit servicers shall protect the personal information and privacy of the debtors and not to communicate with persons other than the borrower, including family members or employers, unless under authorisation by the debtor; (c) Credit services shall not communicate to debtors in way which constitutes harassment, coercion, or undue influence. 3. Member States shall ensure that fees and penalties charged on borrowers by credit servicers do not exceed the cost directly related to the management of the debt. Member States shall require that in the event of the transfer of the creditor’s rights under a credit agreement or the credit agreement itself to a credit purchaser, the debtor is notified in due time about the transfer and that all relevant Union and national law concerning in particular the enforcement of contracts, consumer protection, borrower’s rights and criminal law continues to apply to the credit purchaser or the credit servicer. 4. Member States shall ensure that credit servicers and credit purchasers foresee the possibility, if viable, and set out the conditions for non-performing borrowers to exit their non-performing status in line with measures set out in the ECB Guidance to banks on non-performing loans.
Amendment 351 #
Proposal for a directive Article 9 – paragraph 2 – point d (d) an undertaking by the parties to comply with the Union and national law applicable to the credit agreement or the creditor's rights, including in respect of consumer protection.
Amendment 352 #
Proposal for a directive Article 9 – paragraph 2 – point d a (new) (da) a clause requiring the fair and diligent treatment of the borrowers.
Amendment 353 #
Proposal for a directive Article 9 – paragraph 2 – point d a (new) (da) a clause requiring the fair and diligent treatment of the borrowers.
Amendment 354 #
Proposal for a directive Article 9 – paragraph 2 a (new) 2a. Member States shall require that the credit servicing agreement provides requirements according to which: (a) the credit servicer shall notify the creditor prior to outsourcing any of its activity as credit servicer; (b) the borrower shall be informed of the credit servicing agreement as well as of any further outsourcing of credit servicing activities; (c) the costs and remuneration of the credit servicer may not be charged to the borrower; (d) the borrower shall be entitled to plead against the credit servicer any relevant defence which was available to him as against the original creditor.
Amendment 355 #
Proposal for a directive Article 9 – paragraph 3 – introductory part 3. Member States shall ensure that the credit servicer keeps and maintains the following records for at least 10 years from the date of the contract referred to in paragraph 1 and for at least five years from the date the contract is terminated::
Amendment 356 #
Proposal for a directive Article 10 – paragraph 1 – introductory part 1. Member States shall ensure that where a credit servicer uses a third party to perform activities that would normally be undertaken by that credit servicer ('credit service provider'), the credit servicer should be supervised by the same supervisory authorities the banking system of the Member State has and remains fully responsible for complying with all obligations under the national provisions transposing this Directive. The outsourcing of those credit servicing activities shall be subject to the following conditions:
Amendment 357 #
Proposal for a directive Article 10 – paragraph 1 – introductory part 1. Member States shall ensure that where a third party performs for a credit servicer
Amendment 358 #
Proposal for a directive Article 10 – paragraph 1 – subparagraph 1 (new) For the purposes of the first subparagraph a written outsourcing agreement between the credit servicer and the credit service provider shall be concluded, which shall provide that the credit service provider is obliged to comply with the applicable legal provisions, including national law transposing this Directive, and the relevant Union or national law applicable to the creditor’s rights under a credit agreement or the credit agreement itself. The contractual relationship between the credit servicer and the creditor and obligations of the credit servicer towards the creditor or borrowers shall not be altered by the outsourcing agreement with the credit service provider. The compliance of a credit servicer with the requirements of its authorisation as set out in Article 5(1) shall not be affected by the outsourcing of the credit servicing activities. The outsourcing to the credit service provider shall not prevent the supervision by competent authorities of a credit servicer in accordance with Articles 12 and 20. The outsourcing of those activities stated in Article 3(9) shall not be undertaken in such a way as to impair the quality of the credit servicer’s internal control, soundness or continuity of its credit services.
Amendment 359 #
Proposal for a directive Article 10 – paragraph 2 2. Member States shall ensure that the credit servicer keeps and maintains records of all instructions provided to the credit service provider for at least 10 years from the date of the contract referred to in paragraph 1 and for at least five years from the date the contract is terminated.
Amendment 360 #
Proposal for a directive Article 10 – paragraph 2 2. Member States shall ensure that the credit servicer
Amendment 361 #
Proposal for a directive Article 10 a (new) Article 10a Right to legal representation 1. In any court hearing involving a distressed borrower there shall be consideration of the equality of representation status to ensure a full and fair hearing and full and complete understanding of all of the parameters and legal contentions being addressed. 2. This demands that there be an equivalent of legal representation provided and available to all distressed borrowers and, insufficient advance, to ensure comprehensive preparation of all relevant facts and detail for appropriate court representation of the case in dispute. 3. Where necessary, this service shall be provided at the cost of the Member State through free legal aid or its equivalent.
Amendment 362 #
Proposal for a directive Article 11 – paragraph 1 1. Member States shall ensure that a credit servicer having obtained an authorisation in accordance with Article 5 in a home Member State has the right to provide in the Union those services that are covered by that authorisation or those established for the renegotiation of the terms and conditions related to the creditor’s rights under a credit agreement or of the credit agreement itself.
Amendment 363 #
Proposal for a directive Article 11 – paragraph 1 1. Member States shall ensure that a credit servicer having obtained an authorisation in accordance with Article 5 in a home Member State has the right to provide in the Union those services that are covered by that authorisation, without prejudice to national laws for borrowers’ rights.
Amendment 364 #
Proposal for a directive Article 11 – paragraph 1 a (new) 1a. By way of derogation from the first subparagraph, with regard to secured credit agreements concluded between creditors and borrowers who are consumers as defined in point (a) of Article 3 of Directive 2008/48/EC, as well as credit agreements concluded between creditors and business borrowers secured by the immovable residential property which is the primary residence of a business borrower, a credit servicer shall be required to obtain an authorisation and establish a branch or a subsidiary in the Member State where it intends to operate.
Amendment 365 #
Proposal for a directive Article 11 – paragraph 1 a (new) 1a. With regard to credit agreements concluded between creditors and consumers, as well as credit agreements concluded between creditors and business borrowers secured by the immovable residential property which is the primary residence of a business borrower, a credit servicer shall be required to obtain an authorisation and establish a branch or a subsidiary in the Member State where it intends to operate.
Amendment 366 #
Proposal for a directive Article 11 – paragraph 1 a (new) 1a. With regard to credit agreements concluded between creditors and consumers, a credit servicer shall be required to obtain an authorisation and establish a branch or a subsidiary in the Member State where it intends to operate.
Amendment 367 #
Proposal for a directive Article 11 – paragraph 1 a (new) 1a. With regard to credit agreements concluded between creditors and consumers, a credit servicer shall be required to obtain an authorisation and establish a branch or a subsidiary in the Member State where it intends to operate.
Amendment 368 #
Proposal for a directive Article 11 – paragraph 2 – point b (b)
Amendment 369 #
Proposal for a directive Article 11 – paragraph 2 – point c Amendment 370 #
Proposal for a directive Article 11 – paragraph 7 a (new) 7a. Credit servicers shall follow any additional host Member State laws and rules for debt collection activities regardless of where the headquarters of the credit servicer is located in the EU.
Amendment 371 #
Proposal for a directive Article 11 – paragraph 7 a (new) 7a. A credit servicer shall follow the host Member State rules for debt collection activities, regardless of where its headquarters are located in the EU.
Amendment 372 #
Proposal for a directive Article 12 – paragraph -1 (new) -1. Credit servicers shall not be allowed to provide cross-border services in respect of credit agreements concluded between creditors and borrowers who are consumers as defined in point (a) of Article 3 of Directive 2008/48/EC, as well as credit agreements concluded between creditors and business borrowers secured by the immovable residential property which is the primary residence of a business borrower. In that case, credit servicers shall be authorised and supervised by the competent authorities of the Member State where they effectively operate.
Amendment 373 #
Proposal for a directive Article 12 – paragraph 1 1. Member States shall ensure that the competent authorities of the home Member State review and evaluate the ongoing compliance by a credit servicer who provides services in a host Member State with the requirements laid down in Article 5 and 5a of this Directive.
Amendment 374 #
Proposal for a directive Article 12 – paragraph 1 a (new) 1a. Credit servicers shall not be allowed to provide cross-border services in respect of credit agreements concluded between creditors and consumers, as well as credit agreements concluded between creditors and business borrowers secured by the immovable residential property which is the primary residence of a business borrower. In that case, credit servicers shall be authorised and supervised by the competent authorities of the Member State where they effectively operate.
Amendment 375 #
Proposal for a directive Article 12 – paragraph 1 a (new) 1a. Member States shall ensure that the competent authorities of the host Member State may review and evaluate the ongoing compliance by a credit servicer who provides services in that Member State with the requirements arising from this Directive as well as from other Union and national rules applicable to the credit agreement and to its debtor.
Amendment 376 #
Proposal for a directive Article 12 – paragraph 1 a (new) 1a. Credit servicers shall not be allowed to provide cross-border services in respect of credit agreements concluded between creditors and consumers. In that case, credit servicers shall be authorised and supervised by the competent authorities of the Member State where they effectively operate.
Amendment 377 #
Proposal for a directive Article 12 – paragraph 1 a (new) 1a. Credit servicers shall not be allowed to provide cross-border services in respect of credit agreements concluded between creditors and consumers. In that case, credit servicers shall be authorised and supervised by the competent authorities of the Member State where they effectively operate.
Amendment 378 #
Proposal for a directive Article 12 – paragraph 2 2. Member States shall ensure that the competent authorities of a home and host Member State are empowered to supervise, investigate and impose administrative sanctions or penalties and remedial measures on credit servicers in respect of their activities in a host Member State concerning the responsibilities conferred by the previous paragraph.
Amendment 379 #
Proposal for a directive Article 12 – paragraph 4 4. Member States shall ensure that where a credit servicer which is domiciled or established in a home Member State, has set up a branch or appointed a
Amendment 380 #
Proposal for a directive Article 12 – paragraph 5 5. Member States shall ensure that the competent authorities of the home Member State in the exercise of their functions and duties provided for in this Directive shall ask the competent authorities of the host Member State for their assistance in carrying out an on-site inspection of a branch set up in or of an agent appointed in
Amendment 381 #
Proposal for a directive Article 12 – paragraph 9 9. Member States shall ensure that where the competent authorities of the host Member State have evidence that a credit servicer providing services within its territory, in accordance with Article 11, is in breach of applicable rules, including the obligations arising from the national provisions transposing this Directive, it shall transmit that evidence to the competent authorities of the home Member State and request that they take appropriate measures.
Amendment 382 #
Proposal for a directive Article 12 – paragraph 9 9. Member States shall ensure that where the competent authorities of the host Member State have evidence that a credit servicer providing services within its territory, in accordance with Article 11, is
Amendment 383 #
Proposal for a directive Article 12 – paragraph 11 11. Member States shall ensure that where, after having informed the home Member State no adequate measures were taken in a reasonable time or despite measures taken by the competent authorities of the home Member State or in an urgent case, where immediate action is necessary to address a serious threat to the collective interests of the borrowers, given that the credit servicer continues to be in breach of the applicable rules, including its obligations under this Directive and other national rules, the competent authorities of the host Member State are entitled to take appropriate administrative
Amendment 384 #
Proposal for a directive Article 12 – paragraph 11 11. Member States shall ensure that where, after having informed the home Member State
Amendment 385 #
Proposal for a directive Article 12 – paragraph 11 a (new) 11a. Where a competent authority of a Member State considers that, in a particular matter, cooperation with competent authorities of another Member State does not comply with the relevant requirements set out in this Directive, it shall refer the matter to EBA. In case of disagreement between the home and host authorities that last longer than 4 months, the authorities concerned shall defer their decision to EBA and await any decision that the Authority may take in accordance with Article 19(3) of Regulation (EU) No 1093/2010 and shall take their decision in accordance with the decision of EBA. The four-month period shall be deemed to be the conciliation period within the meaning of that Regulation. EBA may also assist the competent authorities in reaching an agreement on its own initiative in accordance with the second subparagraph of Article 19(1) of that Regulation.
Amendment 386 #
Proposal for a directive Title 2 – chapter 2 a (new) Rights and protection of distressed consumer borrowers
Amendment 387 #
Proposal for a directive Article 12 a (new) Article 12a Forbearance measures and foreclosure 1. Creditors shall make every effort to avoid transferring consumer non- performing loans to third parties. Notably, Member States shall ensure that creditors exercise reasonable forbearance towards the distressed borrowers, in accordance with Article 28 of Directive 2014/17/EU and the EBA Guidelines on arrears and foreclosure EBA/GL/2015/12. 2. Forbearance measures may include the following concessions to the consumer: (a) a total or partial refinancing of a credit agreement; (b) a modification of the previous terms and conditions of a credit agreement, which may include among others: (i) extending the term of the mortgage; (ii) changing the type of the mortgage (such as, changing the type of mortgage from a capital and interest mortgage to an interest only mortgage); (iii) deferring payment of all or part of the instalment repayment for a period; (iv) changing the interest rate up to a certain cap; (v) offering a payment holiday. 3. Definition of non-performing loans adopted by Commission Implementing Regulation (EU) 2015/227 shall be without prejudice to the creditors’ forbearance obligations. 4. In case of foreclosure, when the credit is secured by the consumer’s primary residence, return or transfer to the creditor or a third-party of the security or proceeds from the sale of the security shall be sufficient to repay the credit. Article 28(4) of Directive 2014/17/EU shall be amended accordingly.
Amendment 388 #
Proposal for a directive Article 12 b (new) Article 1 b Debt buy-back 1. When a credit institution intends to transfer a credit agreement to a credit purchaser at a specified price, before the transfer the credit institution shall allow the debtors concerned who are consumers to buy back their debt at the same price or with a small mark-up, which would be specified by the relevant competent authorities. For that purpose, credit institutions shall be required to disclose to the relevant competent authorities the necessary details of expected deals with credit purchasers. 2. Member States shall ensure that the buy-back option can be exercised in instalments.
Amendment 389 #
Proposal for a directive Article 12 b (new) Amendment 390 #
Proposal for a directive Article 12 d (new) Article 12d Right to legal representation 1. In any court hearing involving a distressed borrower there shall be consideration of the equality of representation status to ensure a full and fair hearing and full and complete understanding of all of the parameters and legal contentions being addressed. 2. This demands that there be an equivalent of legal representation provided and available to all distressed borrowers and, insufficient advance, to ensure comprehensive preparation of all relevant facts and detail for appropriate court representation of the case in dispute. 3. Where necessary, this service shall be provided at the cost of the Member State through free legal aid or its equivalent;
Amendment 391 #
Proposal for a directive Article 12 e (new) Article 12e Out of court settlement Member States shall ensure that independent and effective out-of-court settlement mechanisms are available to consumers. Those mechanisms shall comprise direct settlement and alternative dispute resolution.
Amendment 392 #
Proposal for a directive Article -13 (new) Amendment 393 #
Proposal for a directive Article -13 a (new) Article -13a Requirements for creditors prior to transferring creditor’s rights under a credit agreement or the credit agreement Member State shall require that creditors may not transfer a performing credit agreement without the agreement of the borrower having concluded the credit agreement.
Amendment 394 #
Proposal for a directive Article 13 – paragraph 1 Amendment 395 #
Proposal for a directive Article 13 – paragraph 1 1. Member States shall, to the extent that it has or can reasonably be expected to obtain, or facilitate distribution of, such information, ensure that a creditor shall provide all necessary information to a credit purchaser to enable that credit purchaser assess the value of the credit agreement and the likelihood of recovery of the value of that agreement prior to entering into a contract for the transfer of that credit agreement.
Amendment 396 #
Proposal for a directive Article 13 – paragraph 2 – introductory part 2. On a biannual basis, Member States shall require
Amendment 397 #
Proposal for a directive Article 13 a (new) Article 13a Credit purchasers subject to national law A credit purchaser carrying out activities in a Member State is subject to the restrictions and requirements established in the national law of the Member State in accordance with this Directive.
Amendment 398 #
Proposal for a directive Article 14 – paragraph 1 1. EBA shall develop draft
Amendment 399 #
Proposal for a directive Article 14 – paragraph 1 1. EBA shall develop
Amendment 400 #
Proposal for a directive Article 14 – paragraph 1 1. EBA shall develop draft implementing technical standards that specify the formats to be used by creditors who are credit institutions for the provision of information as set out in Article 13(1), in order to provide detailed information on their credit exposures in the banking book to credit purchasers for the screening, financial due diligence and valuation of the credit
Amendment 401 #
Proposal for a directive Article 14 – paragraph 2 Amendment 402 #
Proposal for a directive Article 14 – paragraph 3 Amendment 403 #
Proposal for a directive Article 15 – paragraph 1 1. Member States shall ensure th
Amendment 404 #
Proposal for a directive Article 15 – paragraph 2 Amendment 405 #
Amendment 406 #
Proposal for a directive Article 15 – paragraph 2 2. Member States shall ensure that
Amendment 407 #
Proposal for a directive Article 15 – paragraph 2 2. Member States shall ensure that a credit purchaser is not subject to any additional administrative requirements for the purchase of creditor’s rights under a non-performing credit agreement or the non-performing credit agreements itself other than as provided for by the national measures transposing this Directive, the consumer protection law or governing contract law. Member States shall ensure that relevant Union and national law concerning in particular the enforcement of contracts, consumer protection, borrower's rights, credit origination, bank secrecy rules and criminal law continues to apply to the credit purchaser upon the transfer of the creditor’s rights under a credit agreement or the credit agreement itself to the credit purchaser. The level of protection provided under Union and national law to consumers and other borrowers shall not be affected by the transfer of the creditor’s rights under a credit agreement or the credit agreement itself to the credit purchaser.
Amendment 408 #
Proposal for a directive Article 15 – paragraph 2 2. Member States shall ensure that a credit purchaser is
Amendment 409 #
Proposal for a directive Article 15 – paragraph 2 a (new) 2a. Member States shall ensure that a credit purchaser, or where relevant the appointed credit servicer, upon the transfer of the creditor’s rights under a credit agreement or the credit agreement itself assumes all relevant information and notification requirements to the national competent authorities.
Amendment 410 #
Proposal for a directive Article 15 – paragraph 2 a (new) 2a. This Directive is without prejudice to national powers regarding credit registers, including the power to require information to credit purchasers regarding the creditor’s rights under a credit agreement or the credit agreement itself and its performance.
Amendment 411 #
Proposal for a directive Article 15 – paragraph 2 b (new) 2b. This Directive does not affect Member States’ laws extending the scope of the Directive or imposing additional requirements to credit purchasers.
Amendment 412 #
Proposal for a directive Article 17 Amendment 413 #
Proposal for a directive Article 18 – paragraph 1 – introductory part 1. Member States shall ensure that a credit purchaser, entities or, where applicable, its representative designated in accordance with Article 17, shall be subject to the same rules, be it specialised credit servicers and banking institutions. Moreover, it communicates to the competent authorities of the Member State where the credit purchaser or, where applicable its representative is domiciled or established that it intends to directly enforce a credit agreement by providing the following information:
Amendment 414 #
Proposal for a directive Article 18 – paragraph 1 – introductory part 1. Member States shall ensure that a credit purchaser
Amendment 415 #
Proposal for a directive Article 19 – paragraph 1 1.
Amendment 416 #
Proposal for a directive Article 19 – paragraph 1 a (new) 1a. Member States shall require the national competent authorities to make publicly available information regarding the transfer of credit agreements from a credit institution to a credit purchaser, or from one credit purchaser to another, including the identity and address of the new credit purchaser and, where applicable, its representative designated in accordance with Article 17.
Amendment 417 #
Proposal for a directive Article 20 – paragraph 1 1. Member States shall ensure that credit servicers, credit purchasers and, where applicable, credit service providers to whom activities have been outsourced in accordance with Article 10, comply with the national provisions transposing this Directive on an on-going basis and shall ensure that those activities are subject to adequate supervision by the competent authorities of the home Member State in order to assess such compliance.
Amendment 418 #
Proposal for a directive Article 20 – paragraph 2 Amendment 419 #
Proposal for a directive Article 21 – paragraph 1 – introductory part 1. Member States shall ensure that competent authorities of the home and host Member State designated pursuant to Article 20(3), are given all supervisory, investigatory and sanctioning powers necessary for the exercise of their functions and duties laid down in this Directive, including at least the following:
Amendment 420 #
Proposal for a directive Article 21 – paragraph 1 – point b a (new) (ba) the power to prohibit certain activities;
Amendment 421 #
Proposal for a directive Article 21 – paragraph 1 – point e a (new) (ea) the power to require a credit servicer to remove members of its management or administrative organ when they fail to comply with the requirements set out in Article 5(1)(b) and Article 5a;
Amendment 422 #
Proposal for a directive Article 21 – paragraph 1 – point e b (new) Amendment 423 #
Proposal for a directive Article 21 – paragraph 1 – point e c (new) (ec) the power to require credit servicers to modify or update the policies adopted by credit servicers to ensure the fair and diligent treatment of the borrowers, and the recording and handling of borrower complaints;
Amendment 424 #
Proposal for a directive Article 21 – paragraph 1 – point e d (new) (ed) the power to request further information pertaining to the transfer of the creditor’s rights under the credit agreements or of the credit agreements themselves;
Amendment 425 #
Proposal for a directive Article 21 – paragraph 1 – point e e (new) (ee) the power to review sound forbearance policies and processes referred to in Article -13;
Amendment 426 #
Proposal for a directive Article 21 – paragraph 2 2. Member States shall ensure that the competent authorities of the home Member State evaluate, at least once a year, the implementation by a credit servicer of the requirements set in points (
Amendment 427 #
Proposal for a directive Article 22 – paragraph 1 – introductory part 1. Without prejudice to the right of Member States to laydown criminal penalties, Member States shall lay down rules
Amendment 428 #
Proposal for a directive Article 22 – paragraph 1 – point a (a) a credit servicer fails to
Amendment 429 #
Proposal for a directive Article 22 – paragraph 1 – point b (b) a credit purchaser or credit servicer's governance arrangements and internal control mechanisms fail to ensure respect for borrower rights and compliance with personal data protection rules;
Amendment 430 #
Proposal for a directive Article 22 – paragraph 1 – point c (c) a credit servicer or a credit purchaser's policy is inadequate for the proper treatment of borrowers as set in Article 5(1)(d);
Amendment 431 #
Proposal for a directive Article 22 – paragraph 1 – point c (c) a credit purchaser or credit servicer's policy is inadequate for the proper treatment of borrowers as set in Article 5(1)(d);
Amendment 432 #
Proposal for a directive Article 22 – paragraph 1 – point d (d) a credit purchaser or credit servicer's internal procedures fail to provide for the recording and handling of borrower complaints according to the obligations set in the
Amendment 433 #
Proposal for a directive Article 22 – paragraph 1 – point g a (new) (ga) a credit institution fails to communicate information set out in the national measures transposing Article 13 of this Directive, only once and after the transfer of the credit agreement is finalized;
Amendment 434 #
Proposal for a directive Article 22 – paragraph 1 – point g a (new) (ga) a credit purchaser fails to comply with the requirements set out in national measures transposing Article -13 of this Directive;
Amendment 435 #
Proposal for a directive Article 22 – paragraph 1 – point g b (new) (gb) a credit purchaser fails to comply with the conduct of business requirements set out in national measures transposing Article 6a of this Directive;
Amendment 436 #
Proposal for a directive Article 22 – paragraph 1 – point g c (new) (gc) a credit institution fails to communicate information set out in the national measures transposing Article 13 of this Directive;
Amendment 437 #
Proposal for a directive Article 22 – paragraph 1 – point g d (new) (gd) a credit institution fails to comply with the requirements set out in national measures transposing Article -13 of this Directive;
Amendment 438 #
Proposal for a directive Article 22 – paragraph 1 – point g e (new) (ge) a credit institution fails to comply with the conduct of business requirements set out in national measures transposing Article 6a of this Directive;
Amendment 439 #
Proposal for a directive Article 22 – paragraph 1 – point g f (new) (gf) a credit servicer allows one or more persons not complying with the requirements as set in Article 5(1)(b) to become or remain a member of its management or administrative organ;
Amendment 440 #
(gg) a credit servicer fails to comply with the requirement set out in the national measures transposing Article 35 of this Directive;
Amendment 441 #
Proposal for a directive Article 22 – paragraph 1 – point g h (new) (gh) a credit servicer or credit service provider fails to comply with the conduct of business requirements set out in national measures transposing Article 6a of this Directive;
Amendment 442 #
Proposal for a directive Article 22 – paragraph 2 – point a (a) a
Amendment 443 #
Proposal for a directive Article 22 – paragraph 4 – introductory part 4. Member States shall ensure that when determining the type of administrative penalties or other remedial measures and the amount of those administrative pecuniary penalties that competent authorities take into account
Amendment 444 #
Proposal for a directive Article 22 – paragraph 5 5.
Amendment 445 #
Proposal for a directive Article 22 – paragraph 6 6. Member States shall ensure that before taking any decision imposing administrative penalties or remedial measures set out in paragraph 2 of this Article, the competent authorities give the concerned credit servicer, credit purchaser
Amendment 446 #
Proposal for a directive Article 22 a (new) Amendment 448 #
Proposal for a directive Article 24 Amendment 449 #
Proposal for a directive Article 25 Amendment 450 #
Proposal for a directive Article 26 Amendment 451 #
Proposal for a directive Article 27 Amendment 452 #
Proposal for a directive Article 28 Amendment 453 #
Proposal for a directive Article 29 Amendment 454 #
Proposal for a directive Article 30 Amendment 455 #
Proposal for a directive Article 31 Amendment 456 #
Proposal for a directive Article 32 Amendment 457 #
Proposal for a directive Article 33 Amendment 458 #
Proposal for a directive Article 34 Amendment 459 #
Proposal for a directive Article 34 – paragraph 1 – introductory part Without prejudice to the obligations to inform the consumer pursuant to Directive 2014/17/EU, Directive 2008/48/EC
Amendment 460 #
Proposal for a directive Article 34 – paragraph 1 – introductory part Without prejudice to the obligations to inform the consumer pursuant to Directive 2014/17/EU, Directive 2008/48/EC and Directive 93/13/EEC, Member States shall ensure that prior to substantially modifying the terms and conditions of a credit agreement either by consent or by operation of law, the creditor communicates the following information to the consumer:
Amendment 461 #
Proposal for a directive Article 34 – paragraph 1 – point a (a) a clear and comprehensive description of the proposed changes and the need for borrower consent or, where applicable, of the changes introduced by operation of law;
Amendment 462 #
Proposal for a directive Article 34 – paragraph 1 – point a (a) a clear
Amendment 463 #
Proposal for a directive Article 35 – paragraph 1 – point a (a) the identity of the credit servicer and, where applicable, the credit purchaser it is providing the service to;
Amendment 464 #
The provision of information to individuals about the processing of personal data and the processing of such personal data and any other processing of personal data for the purposes of this Directive shall be carried out in accordance with Regulation (EU) 2016/679 and with Regulation (EC) No 45/2001. Debt collection is a legal ground for data storing and processing.
Amendment 465 #
Proposal for a directive Article 37 a (new) Article 37a Illegal state aid The Commission shall investigate whether the past sale of credit agreements by publicly owned, or partially publicly owned, credit institutions to credit purchasers which have received special tax advantages may have constituted illegal state aid.
Amendment 466 #
Proposal for a directive Article 40 – paragraph 1 1.
Amendment 467 #
Proposal for a directive Article 40 – paragraph 1 a (new) 1 a. The Commission's impact assessment carried out prior to the proposal for this Directive failed to take into account the impact of the Directive on EU citizens' human rights under the Charter of Fundamental Rights. The transposition of this Directive must be delayed until the Commission produces a new assessment that takes into account the impact of this Directive on the Charter rights of EU citizens.
Amendment 468 #
Proposal for a directive Article 40 – paragraph 1 a (new) 1 a. The evaluation shall assess, inter alia, non-prudent lending practices by creditors, the implementation of forbearance measures under Article 12a and any violations of consumers’ rights through the sale of credit agreements to the secondary market. It shall pay particular attention to the situation of vulnerable debtors, such as individuals from low-income groups.
source: 645.006
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2020-02-17T00:00:00New
2020-02-18T00:00:00 |