Credit revolution. The new regulations will reach the president’s desk

The Senate adopted the Act on loan servicers and loan purchasers without introducing any amendments. The new regulations aim to reduce the risk of non-performing loans and adapt Polish law to the requirements of the European Union. 58 senators voted for the adoption of the bill and 32 were against. Now the document will go to the president’s desk.

What does the new law change?

The Act introduces a number of new regulations regarding entities dealing with loan servicing, including requirements for permits to conduct business, including cross-border ones. Particular attention is focused on non-performing loans, i.e. those whose repayment is delayed by more than 90 days. The new regulations are aimed at protecting the rights of borrowers and increasing the transparency of the activities of loan servicing companies.

These entities will have to develop detailed internal procedures, including anti-money laundering and anti-terrorist financing policies. A procedure will also be introduced to regulate relations with borrowers to ensure greater security and clear rules for loan servicing.

New supervision over the credit market

Pursuant to the Act, the activities of loan servicers will be supervised by the Polish Financial Supervision Authority (KNF). The Polish Financial Supervision Authority will gain the right to maintain a register of these entities and to withdraw permits in the event of non-compliance with the new regulations.

These activities are aimed at protecting the financial market against the risk related to the insolvency of borrowers and the activities of dishonest companies.

When will the changes come into force?

The new regulations are currently waiting for the president’s signature. If approved, they will come into force shortly. Experts emphasize that these regulations are intended to adapt Polish law to EU directives and to strengthen the protection of borrowers against the risk of non-repayment of loans.

According to legislators, the introduction of internal procedures and supervision by the Polish Financial Supervision Authority are key steps in improving security on the credit market. The act is intended to reduce the number of problematic loans and ensure greater stability of the financial system, while protecting the interests of borrowers and limiting the risk for financial institutions.

Will these changes bring the expected results? Everything indicates that time will tell, but legislators are already counting on an improvement in the situation for both borrowers and financial institutions.