On May 5, HUN PRL issued text of Act XII of 2025 of Apr. 30 on NPLs.
HUN PRL issued text of Act XII of 2025 of Apr. 30, 2025 on servicers of non-performing credit agreements (NPLs) and purchasers of NPLs.
Overview
Act promotes development of secondary market for NPLs by removing obstacles to transfer from credit institutions and non-credit institution creditors to loan purchasers.
Also establishes transparent and officially supervised loan servicing activities, while at the same time protects rights of borrowers in appropriate and effective manner.
To increase level of protection provided to borrowers, strengthen consumer confidence, defines in detail content of activities of credit servicer and general operation conditions.
The act creates uniform framework based on EU-level rules that, by eliminating obstacles arising from different national regulations, will enable credit purchasers and credit servicers to take greater advantage of benefits of the EU internal market.
Also creates efficient, competitive market and ensures uniform consumer protection.
Possible for credit entities, creditors not classified as credit firms to manage their NPL portfolio better, under safer conditions by improving conditions for selling loans to third parties, servicing loans, prevent their excessive, economically harmful accumulation.
New EU-wide reg on purchasers, caretakers of NPLs/creditor rights arising therefrom, without prejudice to, without affecting civil, enforcement, financial law rules in force.
There are no changes to regulation of loans not affected by Act such as performing loans, or claims from other financial service activities not specified in the Act on Credit Institutions and Financial Enterprises.
The Act does not affect statutory provisions on transfer of NPLs that are not past due or are less than 90 days past due.
Specific chapters on authorization of operation of credit service provider, return or revocation; relationship of loan purchaser and loan servicer with borrower; cross-border service; supervision of credit servicers providing cross-border services; etc.
HUN GVT authorized to regulate by decree loan servicer's complaint handling process and complaint handling policy; assess knowledge, experience of credit service provider management body as whole, members of management body necessary for activities.
Effectiveness
Act in force on 16th day post promulgation while S28 on 31st day post promulgation.
Any person performing credit servicing activities upon entry into force of the Act may continue credit servicing activities without permission for 180 days post in force date.
Regulators
HUN PRL
Entity Types
B/D; Bank; CNSM; HF; MSB
Reference
PR 5/5/2025; Act XII of 2025, 4/30/2025; Dir 2021/2167
