On 9 November 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines on complaints-handling of credit servicers under Directive (EU) 2021/2167 on credit servicers and credit purchasers (otherwise known as the NPL Directive).

The main purpose of the NPL Directive is to foster the development of secondary markets for non-performing loans (NPLs) in the EU, by removing impediments to, and laying down safeguards for, the transfer of NPLs by credit institutions to credit purchasers, while at the same time safeguarding borrowers’ rights. It provides for an EU-wide regulatory arrangement for both the purchasers and servicers of such credit agreements.

The draft guidelines specify, in accordance with Article 24(1) of the NPL Directive, the requirements credit servicers should comply with when establishing and maintaining effective and transparent procedures for complaints handling from borrowers.

With the aim of bringing about consistent, efficient and effective supervisory practices and a high level of consumer protection across all EU Member States during the transposition of the NPL Directive, the EBA is proposing to extend to credit servicers the application of the existing Joint Committee guidelines on complaints handling, which were developed by the three European Supervisory Authorities and apply uniformly across the banking, investment and insurance sectors since 2014.

The deadline for feedback to this consultation is 9 February 2023.