The process of relicensing management companies ends at the end of the month with the assessment of 18 files submitted by attendantsto be in its final stage.
The screening process went smoothly and without surprises, as most companies provided all the additional information that was requested. Bank of Greecehowever, 2-3 companies seem to still have unresolved issues, which may delay their licensing.
The new law on the activities of servicers, however, provides that they can be granted a short extension by the supervisor to cover their outstanding issues.
It should also be noted that the ECHR did not apply for a license to refinance claims.
At the moment, the law provides: a minimum capital of 100,000 euros is required for servicers active exclusively in claims management, and 4.5 million euros for companies expanding their activities and providing loans for debt restructuring.
As is known, the new law on licensing and control of service providers provides specific provisions, namely:
- Servicers are required to adopt a strengthened framework of internal management and internal control mechanisms that, among other things, ensure respect for borrowers’ rights and compliance with legislation governing credit and credit agreement requirements.
- Adopt a framework of sanctions, administrative and remedial measures to strengthen protection and fair treatment borrowers including appropriate procedures for registering and managing borrower complaints;
- clarifies the information obligations regarding the transmission of claims by credit and financial organizations and loan buyers;
- defines the scope of cross-border activity by credit managers;
- they must submit a business plan with a full description of the company’s operations and strategy over a three-year period.
- to provide the identity data of all natural or legal persons participating in the management company as shareholders or as members of the management.
- establishes the policy for the protection of borrowers and the observance of the rules of honest and diligent treatment of them, as well as the registration and consideration of complaints and complaints of borrowers.
- presents an assessment of the true financial condition of the debtors and provides an undertaking that if the debtor is vulnerable, they will not be auctioned;
- establishes policies and internal procedures for monitoring the performance of the managed portfolio with reference to specific indicators (KPIs).
It should be noted that the three largest companies in the sector – doValue, Cepal, Intrum – have a market share of 82.7% based on the total value of managed exposures, while the rest of the companies register minimally inactive activity (less than 1%). share):
