Letter to the European Banking Authority: E.U. Directive on Credit Servicers and Credit Purchasers

The Directive (EU) 2021/2167 on credit servicers and credit purchasers (“Directive”) was proposed as part of the European Commission’s strategy to reduce current stocks of non-performing loans (“NPLs”) on EU banks’ balance sheets and prevent future NPL build-ups.  The Directive was published in the Official Journal on 8 December 2021 and E.U. Member States are required to adopt and publish implementing legislation by 29 December 2023. Following this, the European Banking Authority published a consultation on its draft implementing technical standards (“ITS”) templates to be used for the provision of information in connection with the sale of NPLs. Stakeholders have brought to the Committee’s attention several potential areas of legal uncertainty in relation to the Directive and the ITS.

The FMLC has sent a letter to the European Banking Authority in response to its consultation highlighting some examples of legal uncertainty. It would value an opportunity to discuss the issues raised in the letter further.  

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