The official government approved a draft Law on credit servicers and credit buyers. It introduces into national legislation the requirements of Directive (EU) 2021/2167 for the general framework and the requirements for persons servicing non-serviced credit contracts issued by a credit institution, as well as for credit buyers.
The draft law includes measures to solve the problems with the high levels of non-performing loans through the development of a stable secondary market, announced the press center of the Council of Ministers (MC). The new law aims to absorb the surplus of non-performing loans by credit institutions, improve the conditions for the cross-border transfer of non-performing credit claims and ensure high levels of protection of borrowers' interests.
Requirements are also being introduced for credit buyers. A license regime is being created for the performance of the activity of service of claims on non-serviced bank loans. Thus, their buyers will be obliged to entrust the service to specialized persons who have the necessary knowledge and skills for the high-quality, efficient and conscientious performance of the activity, in order to ensure the protection of the rights of the borrowers. The Ministry of Justice points out that the writing down of clear rules and requirements for the servicing of non-performing loans will ensure transparency, predictability and contribute to increasing public confidence in the activity of acquiring and servicing claims on non-performing loans.
At the same time, transitional periods are provided for credit servicers and credit buyers to adapt to the new requirements.
Amendments and additions to the Law on the Bulgarian National Bank (BNB), the Law on Credit Institutions, the Law on Consumer Credit and the Law on Consumer Real Estate Loans are proposed in the transitional and final provisions of the draft law. They provide for the granting of powers to regulate and supervise the activities and persons in question by the BNB and the Consumer Protection Commission (CCP).