Claim recovery in Poland
Daniel Klementewicz
by Daniel Klementewicz
Both the legal framework and the entire industry of claim recovery are expected to undergo significant changes in Poland in 2023.
Directive implementation
Poland, like all EU member states, must implement the EU Directive (EU) 2021/2167 on credit servicers and credit purchasers (also known as the non-performing loan (NPL) directive) by the end of this year.
In the context of claim recovery, the NPL irective provides a framework for the management and resolution of NPLs (an NPL is a loan whose repayment is overdue by more than 90 days). The directive unifies and regulates the secondary market in non-performing loans more strictly than ever before. It creates new categories of supervised entities to which lenders – essentially banks – can dispose of NPLs, specifying the conditions to be met by such entities.
The legislation work on its implementation in Poland has been restricted so far to the draft regulation of the debt collection business.
New debt collection regulation
The draft law on debt collection activities and the profession of debt collectors, although not formally an implementation of the NPL Directive, covers the activities of entities dealing with NPLs.
This means that debt collection activities will become a regulated activity. In consequence, the commencement and performance of such activity will mean compliance with numerous requirements, including, most crucially, obtaining a licence.
Furthermore, both debt collection itself and the principles of supervising debt collection activities will be subject to detailed regulation. The draft prohibits the collection of time-barred debts and debt collection with respect to certain categories of persons (e.g. senior citizens and people with disabilities). Consumers and individual farmers will be granted the right to object to debt recovery actions. Following such an objection, debt collection must be discontinued and may not be resumed against the same person by the same company for the same debt.
This will of course drastically change the debt collection landscape in Poland and could be a force for positive change in the upcoming months.
Daniel Klementewicz is respected for his in-depth understanding of practical aspects of deal-making and business setups. His unique skills focus on each stage of the investment life cycle, including purchase, roll out, integration, reorganisation, and exit. Contact Daniel.
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