The Commission decides to take SPAIN and other countries to the Court of Justice of the EU.

The European Commission decided to refer Bulgaria, Spain, Hungary, Netherlands, Austria, Portugal and Finland to the Court of Justice of the European Union for failing to transpose the Directive on Non-Performing Loans (Directive(EU) 2021/2167). The Directive aims to foster the development of a well-functioning secondary market for non-performing loans by establishing rules for the authorisation and supervision of credit purchasers and servicers. The Directive further provides a set of harmonised criteria allowing credit servicers to market non-performing loans cross-border.

Member States were required to transpose this Directive by 29 December 2023. To date, most EU Member States have declared complete transposition of the Directive. However, Bulgaria, Spain, Hungary, Netherlands, Austria, Portugal and Finland have still not notified the Commission the full transposition of the Directive into their national laws.

The Commission sent letters of formal notice to these Member States on 24 January 2024 and subsequently reasoned opinions on 25 July 2024. The Commission considers that efforts by the national authorities of these Member States have, to date, been insufficient and is therefore referring them the Court of Justice of the EU.

In referring Bulgaria, Spain, Hungary, Netherlands, Austria, Portugal and Finland to the Court of Justice of the EU, the Commission will request the Court to impose financial sanctions on for each of these Member States. The amount of each penalty has been calculated taking into account the seriousness, the duration of the infringement and the deterrent effect reflected in the ability to pay of that Member State.

Background

Directive (EU) 2021/2167 attaches significant importance to borrowers and includes safeguards to strengthen consumer protection, such as forbearance measures and information requirements to increase the level of transparency in the relationship with the creditor.

The transposition of the Directive is crucial for the single market as it facilitates the cross-border sale and servicing of non-performing loans, increasing market liquidity and efficiency. It also helps to create a level playing field for credit purchasers and credit servicers across the EU. Most importantly, the strengthened consumer protection measures help safeguard borrowers’ rights, reduce the risk of financial hardship and promote a more stable and trustworthy financial environment.

More information European Commission.