Licence requirement for credit service providers – services for non-performing loans now require a licence

When the Secondary Credit Market Act (Kreditzweitmarktgesetz) came into force on 30 December 2023, services relating to non-performing loans, i.e. loans that are no longer being settled or are at risk of default, will require a licence. Companies that already provide credit services today had to register with BaFin in February and state that they will continue to provide these services and now have until April to submit a licence application. A transitional regulation will then apply to them, under which the services can initially still be provided without a licence. In addition, the sale of NPLs by credit institutions will be subject to clear rules, particularly with regard to the standardised communication of information on the NPLs sold.
BaFin has published FAQs on the new regulation.
These summarise initial information on the licensing requirement and licensing procedures. BaFin has also drawn attention to the changed submission deadlines.