TITLE IV

Member States shall ensure that credit servicers and, where applicable, credit service providers to whom credit servicing activities have been outsourced in accordance with Article 12, comply with the national provisions transposing this Directive on an ongoing basis and shall ensure that those activities are subject to adequate supervision by the competent authorities of the home Member State in order to assess such compliance. The home Member State of a credit purchaser or, where applicable, its representative designated in accordance with Article 19, shall ensure that the competent authorities referred to in paragraph 1 of this Article are responsible for the supervision of the obligations set out in Article 10 and in Articles 17 to 20 in respect of the credit purchaser or, where applicable its representative designated in accordance to Article 19. Member States shall designate the competent authorities responsible for carrying out the functions and duties under the national provisions transposing this Directive. Where Member States designate more than one competent authority pursuant to paragraph 3, they shall determine their respective tasks and designate one of them to be a single point of entry for all necessary exchanges and interactions with competent authorities of home or host Member States. Member States shall ensure that appropriate measures are in place to enable the competent authorities designated pursuant to paragraph 3 of this Article to obtain from credit purchasers or their representatives designated in accordance with Article 19, credit servicers, credit service providers to whom a credit servicer outsources credit servicing activities under Article 12, borrowers and any other persons or public authority, the information necessary to carry out the following: assess ongoing compliance with the requirements laid down in the national provisions transposing this Directive; investigate possible infringements of those requirements; impose administrative penalties and remedial measures in accordance with the national provisions transposing Article 23. Member States shall ensure that the competent authorities designated pursuant to paragraph 3 have the expertise, resources, operational capacity and powers necessary for the exercise of their functions and duties laid down in this Directive. Member States shall ensure that the competent authorities of the home Member State designated pursuant to Article 21(3) are given all supervisory, investigatory and sanctioning powers, necessary for the exercise of their functions and duties laid down in this Directive, including at least the following: the power to grant or refuse an authorisation pursuant to Articles 5 and 6; the power to withdraw an authorisation pursuant to Article 8; the power to prohibit any of the credit servicing activities; the power to conduct on-site and off-site inspections; the power to impose administrative penalties and remedial measures in accordance with the national provisions transposing Article 23; the power to review outsourcing agreements concluded between credit servicers and credit service providers in accordance with Article 12(1); the power to require credit servicers to remove members of their management or administrative organ when they fail to comply with the requirements set out in Article 5(1), point (b); the power to require credit servicers to modify or update their internal governance arrangements and internal control mechanisms in order to effectively ensure respect for borrowers’ rights in accordance with the laws governing the credit agreement; the power to require credit servicers to modify or update their policies adopted to ensure the fair and diligent treatment of borrowers, and the recording and handling of complaints from borrowers; the power to request further information pertaining to the transfer of a creditor’s rights under the non-performing credit agreement, or of the non-performing credit agreement itself. Member States shall ensure that the competent authorities of the host Member State designated pursuant to Article 21(3) and of the Member State where the credit was granted, when different from the host and the home Member States, are given all necessary powers for the exercise of their functions and duties laid down in this Directive. Member States shall ensure that the competent authorities of the home Member State evaluate, by applying a risk-based approach, the implementation by a credit servicer of the requirements set out in Article 5(1), points (e) to (h). Member States shall determine the extent of the evaluation referred to in paragraph 3, having regard to the size, nature, scale and complexity of the activities of the credit servicer concerned. The competent authorities of the home Member State shall inform the competent authorities of the host Member State, or of the Member State where the credit was granted, when different from the host and the home Member States, of the results of the evaluation referred to in paragraph 3 upon request of one of those competent authorities, or where the competent authorities of the home Member State consider it appropriate. The details of any administrative penalties or remedial measures imposed shall be transmitted by the competent authorities of the home Member State to the competent authorities of the host Member State and, where appropriate, of the Member State where the credit was granted, when different from the host and the home Member States. Member States shall ensure that when carrying out the evaluation referred to in paragraph 3, the competent authorities of the home and of the host Member States, and of the Member State where the credit was granted, when different from the host and the home Member States, exchange all information necessary to enable them to carry out their respective functions and duties laid down in this Directive. Member States shall ensure that the competent authorities of the home Member State are able to require a credit servicer, credit service provider or credit purchaser or its representative designated in accordance with Article 19 that does not meet the requirements of the national provisions transposing this Directive to take, at an early stage, all necessary actions or steps in order to comply with those provisions. Without prejudice to the right of Member States to lay down criminal penalties, Member States shall lay down rules establishing appropriate administrative penalties and remedial measures applicable in at least the following situations: a credit servicer fails to comply with the requirement set out in the national provisions transposing Article 11 or enters into an outsourcing agreement infringing the national provisions transposing Article 12 or the credit service provider to whom the credit servicing activities were outsourced commits a serious infringement of the applicable legal provisions, including the national provisions transposing this Directive; a credit servicer’s governance arrangements and internal control mechanisms as set out in Article 5(1), point (e), fail to ensure respect for borrower rights and compliance with personal data protection rules; a credit servicer’s policy is inadequate for the proper treatment of borrowers as set out in Article 5(1), point (f); a credit servicer’s internal procedures as set out in Article 5(1), point (g), fail to provide for the recording and handling of complaints from borrowers according to the obligations set out in the national provisions transposing this Directive; a credit purchaser or, where applicable, its representative designated in accordance with Article 19 fails to communicate the information provided for by national provisions transposing Articles 18 and 20; a credit purchaser or, where applicable, its representative designated in accordance with Article 19 fails to comply with the requirement of the national provisions transposing Article 17; a credit purchaser fails to comply with the requirement of the national provisions transposing Article 19; a credit institution fails to communicate the information set out in the national provisions transposing Article 15; a credit servicer allows one or more persons not complying with the requirements set out in Article 5(1), point (b), to become or remain a member of its management or administrative organ; a credit servicer fails to comply with the requirements set out in the national provisions transposing Article 24; a credit purchaser or, where applicable, credit servicers or any entity mentioned under Article 2(5), point (a)(i) or (iii), fails to comply with national provisions transposing Article 10; a credit servicer receives and holds funds from borrowers when this is not permitted in a Member State in accordance with Article 6(1), point (b); a credit servicer fails to comply with the requirements set out in the national provisions transposing Article 6(2). The administrative penalties and remedial measures referred to in paragraph 1 shall be effective, proportionate and dissuasive and shall include at least the following: a withdrawal of an authorisation to carry out activities as a credit servicer; an order requiring the credit servicer or credit purchaser or, where applicable, its representative designated in accordance with Article 19 to remedy the infringement, and to cease the conduct and to desist from a repetition of that conduct; administrative pecuniary penalties. Member States shall ensure that administrative penalties and remedial measures are effectively implemented. Member States shall ensure that, when determining the type of administrative penalties or remedial measures and the amount of the administrative pecuniary penalties, the competent authorities take into account relevant circumstances, including the following: the gravity and the duration of the infringement; the degree of responsibility of the credit servicer or credit purchaser or, where applicable, its representative designated in accordance with Article 19, responsible for the infringement; the financial strength of the credit servicer or credit purchaser responsible for the infringement, including by reference to the total turnover of a legal person or the annual income of a natural person; the importance of profits gained or losses avoided because of the infringement by the credit servicer or credit purchaser or, where applicable, its representative designated in accordance with Article 19, responsible for the infringement, insofar as those profits or losses can be determined; the losses caused to third parties by the infringement, insofar as those losses can be determined; the level of cooperation by the credit servicer or credit purchaser responsible for the infringement with the competent authorities; previous infringements by the credit servicer or credit purchaser or, where applicable, its representative designated in accordance with Article 19, responsible for the infringement; any actual or potential systemic consequences of the infringement. Member States shall ensure that the competent authorities can apply the administrative penalties and remedial measures set out in paragraph 2 to members of the management or administrative organ, and to other individuals who under national law are responsible for the infringement. Member States shall ensure that before taking any decision imposing the administrative penalties or remedial measures set out in paragraph 2 of this Article, the competent authorities give the concerned credit servicer, credit purchaser or where applicable, its representative designated in accordance with Article 19, the opportunity to be heard. Member States shall ensure that any decision imposing the administrative penalties or remedial measures set out in paragraph 2 is properly reasoned and is subject to the right of appeal. Member States may decide not to lay down rules for administrative penalties for infringements that are subject to criminal penalties under their national law. In that case, Member States shall communicate to the Commission the relevant criminal law provisions.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-12 · Text as adopted (Official Journal); later amendments are not incorporated in this text.