Guidelines on the establishment and maintenance of national lists or registers of credit servicers

General Information

This document is a guide published by the European Banking Authority (EBA) in 2024, entitled "Guidelines on the establishment and maintenance of national lists or registers of credit servicers." It concerns the establishment and updating of national lists or registers of authorized credit service providers in the European Union, pursuant to Directive (EU) 2021/2167 (Credit Servicers Directive). The scope covers competent authorities of Member States, authorized credit service providers, credit purchasers, and borrowers, with a focus on transparency and harmonization of practices in the non-performing loans (NPL) sector. The application period of the guidelines begins on 30 December 2024 (p. 1-2, 4-6, 11).

Executive Summary

The subject concerns the guidelines developed by the EBA to assist competent authorities of Member States in establishing and maintaining national lists or registers of authorized credit service providers, pursuant to Article 9(1) of Directive (EU) 2021/2167. These lists must contain specific information to ensure transparency and fair treatment across the Union, notably for credit purchasers and borrowers, the main users and beneficiaries. Required information includes provider identification (name, address, national identification number, LEI if available), authorization status to provide services and to receive/hold funds, contact details for complaint submission, as well as the list of host Member States where services are provided with corresponding dates. The lists must be accessible 24/7, without prior registration, free of charge, available in the national language and in English, and downloadable. Updates must be made at least weekly, with a reduced deadline of two working days in case of authorization withdrawal or prohibition to receive funds. A standardized notification template is provided to facilitate exchanges between national authorities. Finally, a link to the EBA website presenting competent authorities for complaint handling must be included. These guidelines were subject to public consultation between July and October 2023, with seven responses received, leading to clarifications and minor additions, notably on authorization status and availability of lists in English. Application is planned from 30 December 2024, with a two-month deadline for authorities to notify their compliance (p. 4-5).

Context and Objectives

Directive (EU) 2021/2167 aims to harmonize practices related to credit service providers and purchasers of non-performing loans (NPL) in the European Union, to facilitate the management and sale of NPLs by financial institutions. Article 9(1) requires Member States to establish and maintain a national list or register of authorized credit service providers. The EBA was mandated to develop guidelines specifying the content, accessibility, and update deadlines of these lists, to ensure transparency and fair treatment at the European level. The document responds to this mandate, considering the needs of main users (borrowers and credit purchasers) and competent authorities. The scope is limited to authorized providers, and the guidelines do not cover the creation of a centralized European register nor detailed complaint management procedures (p. 6-8, 19-21).

Summary of Key Points by Theme

Content of lists or registers:

- The lists must include for each provider: the Legal Entity Identifier (LEI) if available, a national identification number assigned by the competent authority of the home country, the legal name with legal form, the trade name if different, the full address of the head office, branch addresses in host Member States, contact details (email, web form, postal address, phone), contacts for complaint handling, home country, authorization status (valid or withdrawn) with associated dates, authorization status to receive and hold funds (authorized, prohibited for this provider, or general prohibition in the country), the list of host Member States where services are provided with start and end dates (p. 12-14).

Accessibility:

- The lists must be accessible 24/7 on the competent authority’s website or other electronic tool, without registration or fees, downloadable, and available in the national language and in English (p. 14-15).

Updates:

- Regular update at least once per week.

- Urgent update within two working days in case of authorization withdrawal or prohibition to receive/hold funds.

- Notification between competent authorities via a standardized annexed template, with instant and traceable communication.

- Authorities must inform the EBA of functional email addresses for list management (p. 14-15).

Complaint management:

- Authorities must indicate if they are competent to handle complaints related to providers.

- A link to the EBA website presenting competent authorities for complaints must be included in the list presentation, but not in the lists themselves (p. 15).

Public consultation and adjustments:

- Seven responses received during the consultation from July to October 2023.

- Clarifications on authorization status, including addition of a "generally prohibited" status for countries where receipt of funds is generally banned.

- Inclusion of download possibility and availability in English.

- Clarification on contact details, allowing multiple means.

- Retention of providers whose authorization was withdrawn indefinitely, to ensure transparency and protect borrowers long-term.

- Rejection of including responsible managers in the lists to limit administrative burden (p. 7-8, 22-40).

Main Findings and Lessons Learned

Established facts:

- The Directive requires maintaining national lists or registers of authorized providers.

- The EBA defined a harmonized framework specifying information to include, access modalities, and update deadlines.

- Lists must be accessible free of charge, without registration, 24/7, downloadable, in the national language and in English.

- Updates must be weekly, with shortened deadlines for critical cases.

- A standardized template facilitates exchanges between national authorities.

Assumptions and interpretations:

- The EBA considers main beneficiaries to be credit purchasers and borrowers, guiding content and accessibility.

- Transparency is prioritized, justifying indefinite retention of withdrawn providers in the register.

- Availability in English is justified by the cross-border nature of the markets.

Uncertainties:

- The EBA does not address creation of a centralized European register, which could be a future development.

- Detailed complaint management is not covered by these guidelines.

- The real impact on reputation of withdrawn providers remains debated, but priority is given to consumer protection (p. 4-5, 7-8, 19-22, 28-29).

Conclusions and Recommendations

The EBA concludes that these guidelines are necessary to harmonize competent authorities’ practices regarding maintenance of lists or registers of authorized credit service providers, thereby contributing to transparency and a more efficient secondary market for non-performing loans in the European Union. The guidelines clearly specify content, access modalities, update deadlines, and notification procedures between authorities, while integrating feedback from the public consultation. They will be translated into all official EU languages and enter into force on 30 December 2024. Competent authorities must notify their compliance within two months following publication. The EBA maintains the necessity to retain withdrawn providers indefinitely in the registers to protect borrowers long-term. Finally, a link to the EBA website presenting competent authorities for complaints must be included in the list presentation (p. 5, 10-11, 19-21, 28-29, 40).