Region

Jurisdiction

Regulator

2026-05-07

Information on Application for Permission to Conduct Credit Servicing Activities

Finanstilsynet has issued guidance on the new Act on Credit Servicing Companies and Credit Buyers, which implements the EU NPL Directive and establishes regulatory frameworks for the secondary market of non-performing loans while protecting borrower rights. The regulation requires companies previously licensed for debt collection to submit applications for credit servicing permissions by 29 February 2024 to utilize a six-month transitional arrangement allowing continued operations until 29 June 2024 or a final decision. Credit buyers and credit institutions are simultaneously reminded of their new disclosure obligations under the updated legal framework.

Denmark

Finanstilsynet Denmark

13-02-2024 Credit servicing companies, as well as credit buyers and credit institutions, should be aware of new requirements in the Act on Credit Servicing Companies and Credit Buyers. Finanstilsynet has compiled information for companies wishing to apply for permission to conduct credit servicing activities, as well as information for credit buyers and credit institutions regarding their disclosure obligations.

Apply for Permission to Conduct Credit Servicing Activities

Background

The Act on Credit Servicing Companies and Credit Buyers entered into force on 30 December 2023. The Act implements the European Parliament and Council Directive on credit servicing companies and credit buyers (the NPL Directive) into Danish law.

The Act promotes the development of a secondary market for non-performing loans by ensuring regulatory frameworks that remove obstacles and establish protective measures for the transfer of non-performing loans from credit institutions to credit buyers. At the same time, the Act protects the rights of borrowers and consumers. This is achieved, among other things, by setting new criteria for permissions for companies conducting credit servicing activities and by granting Finanstilsynet supervisory powers in this area.

Transitional Arrangement for Companies with Permission to Conduct Debt Collection Activities

Credit servicing activities were previously covered by the Debt Collection Act and the requirement for permission to conduct debt collection activities before 30 December 2023. The Act on Credit Servicing Companies and Credit Buyers includes a transitional arrangement ensuring that debt collection companies – without permission under the Act on Credit Servicing Companies and Credit Buyers – may continue credit servicing activities for half a year after the rules enter into force (until 29 June 2024), or until Finanstilsynet makes a decision. However, the permission exemption requires that covered companies submit an application for permission to conduct credit servicing activities by 29 February 2024 at the latest. If they do not apply by 29 February 2024, they will no longer be able to use the transitional arrangement after that date and must cease credit servicing activities until permission under the Act on Credit Servicing Companies and Credit Buyers is granted.

Last updated 13-02-2024

You control your data

This website uses third-party cookies for visit statistics. If you select "Accept all", you consent to third-party services storing information about your visit.