Credit Servicing Agreement
From Open Risk Manual
Revision as of 17:41, 3 June 2022 by Wiki admin (talk | contribs)
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
