Difference between revisions of "Credit Servicing Agreement"
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== Definition == | == Definition == | ||
| − | '''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 | + | '''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. |
| + | |||
| + | == Requirements == | ||
| + | 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 | ||
| + | |||
| + | == Outsourcing == | ||
| + | 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 | ||
[[Category:NPL Directive]] | [[Category:NPL Directive]] | ||
Latest revision as of 17:41, 3 June 2022
Definition
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.
Requirements
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
Outsourcing
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
