Credit Servicing Agreement

From Open Risk Manual


Credit Servicing Agreement means a written contract concluded between a Credit Purchaser and a Credit Servicer concerning the services to be provided by the credit servicer on behalf of the credit purchaser.


A credit servicing agreement under the NPL Directive is required to provide for the following:

  • a detailed description of credit servicing activities to be carried out by the credit servicer;
  • the level of remuneration of the credit servicer or how the remuneration is to be calculated;
  • the extent to which the credit servicer can represent the credit purchaser in relation to the borrower;
  • an undertaking by the parties to comply with European Union and national law applicable to a creditor’s rights under a credit agreement, or to the credit agreement itself, including in respect of consumer and data protection
  • a clause requiring the fair and diligent treatment of the borrowers


The credit servicing agreement contains a requirement pursuant to which the credit servicer notifies the credit purchaser prior to outsourcing any of its credit servicing activities