The EU Directive on Credit Servicers and Credit Purchasers has been published in the Official Journal as Directive (EU) 2021/2167.

As expected, Member States will need to publish their transposing measures by 29 December 2023, and apply them from 30 December 2023. For more information, read our previous updates here and here.

As mentioned in our previous updates, in-scope credit purchasers will not need to be regulated and this is a welcome development as, in Ireland, the authorisation requirement has been particularly onerous. However, key issues to be worked through pre-transposition include the categorisation of NPLs, and how sales of combined portfolios by EU banks (comprising NPLs and performing loans) are to be dealt with. The Directive will apply to post-transposition NPL sales only, so credit servicers and credit purchasers are likely to be dealing with a mixed regime for some time to come.

Please contact any member of our team to discuss the impact of the Directive on your business.