The directive was agreed in 2021 and it has to be transposed by December 2023. The purpose of the directive is to promote a secondary market for non-performing loans. It lays down a common framework for the sale and management of bank originated non-performing loans which are transferred or sold after 29 December 2023. It provides for a new EU wide authorisation and regulatory framework for credit servicers to be overseen by national competent authorities (which in the case of Ireland will be the Central Bank) and it allows such authorised entities to passport credit servicing activities across the EU.
In addition to the provisions relating to the sale and servicing of bank originated non-performing loans, the directive also makes certain amendments to the Consumer Credit Directive (2008) and the Mortgage Credit Directive (2014).
The directive contains a number of discretions in respect of which decisions which will have to be made during the transposition process. The purpose of this consultation process is to seek the views of the public on these discretions so as to inform the Minister’s decisions in the context of transposing the directive.
Speaking today, Minister McGrath said:
“This directive aims to develop a secondary market for non-performing loans. It lays down a common European framework for the transfer and management of bank originated non-performing loans which are transferred or sold after 29 December 2023, while at the same time safeguarding borrowers’ rights.
The public consultation process on the credit servicers’ directive process will run until 28 February 2023. Submissions received in response to this consultation will be taken into consideration when taking decisions on the discretions contained within the directive when transposing the provisions of the directive into Irish law.”
