Act No. 84 / 2024 Coll.
Non-performance credit market law
Valid
Law
Effective from 01.05.2024
Text versions:
01.05.2024
11.04.2024
Contents
ČÁST PRVNÍ
§ 1
§ 2
§ 3
ČÁST DRUHÁ
HLAVA I
§ 4
HLAVA II
§ 5
§ 6
§ 7
§ 8
§ 9
§ 10
§ 11
§ 12
§ 13
§ 14
§ 15
§ 16
§ 17
§ 18
ČÁST TŘETÍ
HLAVA I
§ 19
§ 20
HLAVA II
§ 21
§ 22
§ 23
ČÁST ČTVRTÁ
§ 24
§ 25
§ 26
§ 27
§ 28
§ 29
ČÁST PÁTÁ
§ 30
§ 31
§ 32
§ 33
§ 34
§ 35
§ 36
ČÁST ŠESTÁ
§ 37
§ 38
§ 39
§ 40
ČÁST SEDMÁ
HLAVA I
§ 41
§ 42
§ 43
§ 44
§ 45
HLAVA II
§ 46
§ 47
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84
THE LAW
of 6 March 2024
on the non-performance credit market
Parliament has decided on this law of the Czech Republic:
GENERAL PROVISIONS
Subject matter
This law implements the relevant European Union Regulation (1) and provides for
(a) the activity of the administrator of the non-executive credit;
(b) rights and obligations in the management of non-executive credit; and
(c) the rights and obligations of the credit trader.
Definition of certain terms
For the purposes of this Act:
(a) a deferred payment, a cash loan, a loan or a similar financial service by non-executive credit where:
1. have been provided by a bank, savings and credit cooperative, a foreign bank established in another Member State or a foreign bank established in a Member State other than a Member State which carries on its activities in the Czech Republic or another Member State; and
2. meet the conditions for non-executive exposures referred to in Article 47a of Regulation (EU) No 575 / 20132 of the European Parliament and of the Council) at the time of their transfer by the person who provided them;
(b) by a credit trader, the person to whom non-executive loans are transferred in the course of his business, except for a bank, savings and credit cooperative, a foreign bank established in another Member State or a foreign bank established in a non-Member State that carries out its business in the Czech Republic or another Member State;
(c) transfer of a non-executive loan transfer of a non-executive loan or transfer of rights and obligations arising therefrom;
(d) a durable medium of data of any instrument which allows the debtor to preserve the information intended for him personally so that it can be used for a reasonable period of time for the purpose of such information and which allows the reproduction of that information in unchanged form;
(e) qualifying holdings in accordance with Article 4 (1) (36) of Regulation (EU) No 575 / 20132 of the European Parliament and of the Council);
(f) a Member State of the European Union or another Contracting State of the Agreement on the European Economic Area,
(g) the home Member State of the non-executive credit administrator, the Member State in which the non-executive credit administrator has its registered office; if the administrator of the non-executive credit has no registered office under its national law, the Member State in which it has its head office;
(h) the home Member State of the credit trader, the Member State in which the credit trader has its registered office; if the credit trader does not have its registered office under its national law, the Member State in which it has its registered office;
(i) the host Member State of the non-executive credit administrator, a Member State which is not its home Member State and in which the non-executive credit administrator has a branch in which he provides services other than through a branch or where the debtor has his habitual residence or registered office; if the debtor does not have its registered office under its national law, the Member State in which it has its registered office,
(j) the host Member State of the credit trader, a Member State which is not its home Member State and in which the debtor has his habitual residence or registered office; if the debtor does not have its registered office under its national law, the Member State in which it has its registered office,
(k) the management of a non-executive credit activity carried out on behalf of a credit trader consisting of:
1. in the collection or recovery of debt due from non-executive credit;
2. in negotiations on the change in the content of the non-performance credit contract liability, if not for the mediation of consumer credit requiring authorisation under the law governing consumer credit,
3. the handling of complaints and complaints by the debtor relating to non-performance credit; or
4. in informing the debtor of any change in interest rate or remuneration associated with non-performing credit or of the maturity of the debt from non-performing credit.
Exemptions from the scope
(1) This law does not apply to the management of non-executive credit
(a) an investment fund manager or a foreign investment fund or comparable person under the law of another Member State; or
(b) a lawyer in the provision of legal services, a notary in the pursuit of a notarial activity or in the provision of legal services in the context of another activity in the context of a notarial activity or a judicial executor in the exercise of an enforcement activity or in the provision of legal assistance in the context of another activity.
(2) This Act shall not apply to the transfer of a non-executive credit where the person to whom a non-executive loan has been transferred is a bank, savings and credit cooperative, a foreign bank from another Member State or a foreign bank from another Member State which carries out its activities in the territory of the Czech Republic or in another Member State, with the exception of Sections 19 and 20 and Sections 5 and 6.
PERSONS AUTHORISED TO CORRECT AN IMPLEMENTARY CREDIT
Authorisation to manage a non-executive loan
Manage a non-executive loan as a business can only:
(a) the bank;
(b) savings and credit cooperatives;
(c) a foreign bank and authorised financial institutions;
(d) non-bank provider of consumer credit;
(e) the administrator of the non-executive credit; and
(f) the foreign administrator of a non-executive loan established in another Member State.
Non-executive loan manager
Basic provisions
The administrator of the non-executive loan is a legal person who is entitled to manage the non-executive loan on the basis of the authorisation to operate the non-executive loan manager granted by the Czech National Bank.
Authorisation to operate a non-executive loan manager
(1) The Czech National Bank grants permission to operate as a non-executive credit administrator to the applicant,
(a) which is a commercial corporation;
(b) which has both its registered office and its registered office in the Czech Republic,
(c) which is credible; the condition of credibility must also be fulfilled by members of its statutory body, supervisory body or other similar body of a legal person;
(d) which ensures that the statutory authority, supervisory authority or other similar body of a legal person has as a whole sufficient expertise and experience to understand the activities of that non-executive credit administrator;
(e) in which only persons have qualified participation;
1. which have not been convicted of an offence against property, an economic offence, an act of terrorist financing or an offence of unauthorised use of personal data, or an intentional offence against life or health; and
2. In respect of which a decision on bankruptcy has not become final in the last five years before the date of application,
(f) which has a transparent and safe origin of financial resources; the condition of transparent and safe origin of the financial resources must be met by the controlling person of the applicant; and
(g) whose management system complies with the requirements of Paragraph 11 and corresponds to the expected activities of the administrator of the non-executive credit.
(2) If the authorisation to operate as an administrator of a non-executive loan is to apply to the receipt of funds from the debtor, the Czech National Bank will grant permission to operate as an administrator of a non-executive loan to an applicant who:
(a) ensure the protection of the funds received from the debtor pursuant to Article 10; and
(b) satisfy the conditions laid down in paragraph 1.
(3) Where the administrator of a non-executive credit applies for an extension of the authorisation to operate as an administrator of a non-executive credit to receive funds from the borrower, paragraph 2 shall apply mutatis mutandis.
(4) An application for authorisation to operate as a non-executive credit administrator may be submitted for a business corporation which has not yet been established and, in the proceedings concerning such an application, by whoever has been designated as a statutory body by the founding act. A commercial corporation which has not yet been established shall be considered as a party to the proceedings. The Czech National Bank shall authorise this commercial corporation to operate as a non-executive credit administrator if it can reasonably be expected to meet the conditions set out in paragraphs 1 and 2 on the date of its establishment. The effects of the decision to grant authorisation for the activities of a non-executive loan manager may arise at the earliest from the date of the creation of this commercial corporation. If no commercial corporation is established within 6 months of the date on which the decision to grant authorisation to the administrator of a non-executive loan became legal, such authorisation shall be considered not to have been granted.
Procedure for the application for authorisation to operate
(1) An application for authorisation to operate as a non-executive credit administrator may only be submitted electronically. The application shall include, in addition to the formalities laid down in the administrative rules, information on compliance with the conditions for the authorisation to operate the non-executive credit administrator and documents certifying compliance with these conditions.
(2) The decision on the application will be issued by the Czech National Bank within 90 days of the date of initiation of the procedure. Within 45 days of receipt of the application, the Czech National Bank shall invite the applicant to remedy any defects in the application.
(3) In the operative part of the decision granting the authorisation to operate the non-executive loan manager, the Czech National Bank shall indicate whether the authorisation to operate the non-executive loan manager also covers the receipt of funds from the borrower.
(4) The detailed details of the application for the activity of the administrator of the non-executive credit, its formats and other technical details shall be laid down in the implementing legislation.
Amendment of data
(1) The administrator of the non-executive loan shall notify the Czech National Bank without undue delay of any significant changes to the data specified in the application for authorisation to operate the non-executive loan manager on the basis of which the authorisation was granted.
(2) The notification referred to in paragraph 1 may only be made electronically.
(3) The detailed details of the notification, its formats and other technical details are laid down in the implementing legislation.
Decommissioning of a non-executive loan manager
(1) The authorisation to operate as a non-executive credit administrator expires on
(a) cancellation of the non-executive credit administrator;
(b) the acquisition of the legal power of a decision on the bankruptcy of the administrator of a non-executive loan; or
(c) the enforceability of the decision to withdraw the authorisation for the activity of the non-executive credit administrator.
(2) As from the date of the expiry of the authorisation for the activity of the non-executive credit administrator, those whose authorisation to operate has expired may not receive funds from the debtor and conduct the management of the non-executive credit, except in the case of activities necessary to settle liabilities arising from the non-executive credit management.
(3) Until it has settled its liabilities under the management of a non-executive loan, any person whose authorisation for the activities of a non-executive loan has expired shall be deemed to be the manager of a non-executive loan under this Act for the purposes of protecting funds and supervision.
Protection of funds received
(1) The administrator of the non-executive loan shall ensure that the funds which he accepts as debt to the credit trader in the management of the non-executive loan are:
(a) registered separately from the own funds of the non-executive credit administrator and from other persons' funds, except for other funds which the non-executive credit administrator has accepted as debt to the same credit trader by the debtor; and
(b) deposited without undue delay in a separate account of the administrator of a non-executive loan with a bank, savings and credit cooperative, foreign banks located in a Member State or foreign banks located in a non-Member State operating in the Czech Republic in accordance with the law governing the activities of banks, or transferred to a credit trader.
(2) If the borrower fulfils his monetary debt to the borrower through the non-executive credit administrator, the debt shall be paid to the non-executive credit administrator.
(3) A non-executive credit manager can only accept money from the borrower as a debt payment to the credit trader if its authorisation to operate relates to this activity.
Management system
(1) The non-executive credit manager applies a governance system that is appropriate for sound management of non-executive credit. The governance system shall be proportionate to the nature, scale and complexity of the activities of the non-executive credit administrator and shall ensure that the non-executive credit is managed properly and smoothly, ensuring the rights of the debtor and respecting the rights and obligations of the creditor under the non-executive loan contract.
(2) The management system referred to in paragraph 1 includes:
(a) sound administrative and accounting procedures;
(b) an internal control system;
(c) rules on compliance with obligations relating to combating the legalisation of proceeds from crime and terrorist financing;
(d) the rules governing negotiations with the debtor which ensure:
1. compliance with the rules for the protection of the debtor;
2. integrity, fairness and competence in dealing with the debtor; and
3. taking into account the financial situation of the debtor and, where necessary, facilitating contact with the operator of the activity of free debt advice in the framework of a voluntary service under the law governing a voluntary service or social services under the law governing social services; and
(e) a system for handling debtors' complaints and complaints under which the administrator of the non-executive credit
1. a free reply to the debtor's complaint; and
2. records of complaints and complaints and records of measures taken to resolve them.
Non-executive loan management contract
The non-executive credit manager shall ensure that the contract under which it manages the non-executive credit on behalf of the credit trader is concluded in writing and includes:
(a) a detailed description of the non-executive credit management activities to be carried out by the non-executive credit administrator for the credit trader;
(b) the amount of remuneration of the administrator of the non-executive loan or the method of calculation thereof;
(c) the extent to which the administrator of the non-executive credit may represent the credit trader in relation to the debtor;
(d) a statement by the administrator of the non-executive loan that he is aware of the obligation to comply with this law, other legislation and directly applicable European Union provisions governing the non-executive loan and the obligation of the creditor resulting from the non-executive loan;
(e) the obligation of the administrator of the non-executive credit to inform the credit trader of his intention to entrust another person with the performance of a non-executive credit management activity; and
(f) the obligation of the administrator of the non-executive credit to act honestly, fairly and suitably against the debtor.
Allocation of another person to the management of non-executive credit
(1) An administrator of a non-executive credit wishing to entrust some activity to the management of a non-executive credit to another person shall notify the Czech National Bank and the competent authority of the host Member State in which the administrator of the non-executive credit manages the non-executive credit.
(2) The administrator of the non-executive credit shall ensure that the contract of delegation of another person to the management of the non-executive credit is in writing and includes a statement by the delegate that he is aware of the obligation to comply with this law, other legislation and directly applicable European Union provisions governing the management of the non-executive credit and the non-executive credit managed by the administrator of the non-executive credit.
(3) The contract referred to in paragraph 2 is without prejudice to the obligations of the administrator of the non-executive credit vis-à-vis the credit trader or debtor.
(4) The administrator of the non-executive credit cannot entrust any other person with all activities of the management of the non-executive credit or with the receipt of funds from the debtor. A non-executive credit manager may entrust a non-executive credit management activity to another person only if it does not result in a significant deterioration in the functioning of the management and management system of the non-executive credit administrator, a reduction in the ability of the Czech National Bank to supervise the activities of the non-executive credit administrator, and if the non-executive credit administrator has access to all relevant information concerning the activities entrusted to another person.
(5) The administrator of the non-executive loan shall ensure that, in the event of termination of the contract commitment referred to in paragraph 2, he has the expertise and resources to manage the non-executive loan, enabling him to continue to manage the non-executive loan.
(6) The notification referred to in paragraph 1 may be made only electronically.
(7) The details of the particulars of the notification, including the annexes certifying compliance with the conditions set out in paragraphs 2 and 4, its formats and other technical specifications shall be laid down in the implementing legislation.
Storage of documents and records
(1) The non-executive credit manager shall keep correspondence with the debtor and the credit trader, records of the instructions of the credit trader to manage the non-executive credit and the non-executive credit management contract for a period of 5 years from the date of termination of the commitment to the non-executive credit management contract.
(2) The administrator of a non-executive credit shall keep records of instructions given to another person responsible for managing the non-executive credit for a period of 5 years from the date of termination of the obligation under Paragraph 13 (2). This is without prejudice to the obligation to keep documents under other legislation.
(3) The legal successor of the administrator of the non-executive credit and of which the authorisation for the activity of the administrator of the non-executive credit has ceased shall also have obligations under paragraphs 1 and 2.
Management of non-executive credit in the host Member State
(1) The administrator of a non-executive loan intending to manage a non-executive loan in the host Member State shall notify the Czech National Bank of:
(a) the name of the host Member State in which it intends to manage the non-executive credit and the name of the Member State in which the non-executive credit was granted, if different from the host Member State and if it is already known to it,
(b) whether he intends to pursue his business in the host Member State through a branch and the address of that branch;
(c) whether it intends to entrust another person with the management of the non-executive credit in the host Member State and the identity and address of that person;
(d) the identity of the member of the statutory authority or other person managing the management of the non-executive credit in the host Member State;
(e) information that the management and management system of the non-executive credit administrator is appropriate for compliance with this law, other legislation and directly applicable European Union provisions governing the protection of the debtor's rights in the host Member State;
(f) a description of the procedures against the legalisation of proceeds from crime and terrorist financing that comply with the requirements applied in the host Member State; and
(g) information on how the administrator of the non-executive credit ensures communication with the debtor in the language of the host Member State or in the language agreed in the non-executive credit agreement.
(2) The notification referred to in paragraph 1 may only be made electronically.
(3) The details of the particulars of the notification, including the annexes containing the documents certifying the facts in the notification contained, its formats and other technical particulars, shall be laid down in the implementing legislation.
Informing the supervisory authority of the host Member State
(1) The Czech National Bank shall, within 45 days of the date on which it received the notification referred to in Article 15 (1), which does not suffer from defects, transmit the notification and the information on whether the administrator of the non-executive loan is entitled to receive funds from the debtor, the supervisory authority of the host Member State.
(2) The Czech National Bank shall inform the administrator of the non-executive loan of the date on which it informed the supervisory authority of the host Member State in accordance with paragraph 1 and of the date on which that authority confirmed receipt of this information.
(3) The Czech National Bank shall also inform the supervisory authority of the Member State in which the non-executive loan was granted, in accordance with paragraph 1, if that Member State differs from the host Member State of the non-executive credit administrator.
Change of data in the notification of the management of non-executive credit in the host Member State
(1) The administrator of the non-executive loan shall notify the Czech National Bank without undue delay of the change of data pursuant to Section 15 (1).
(2) The Czech National Bank shall transmit the notification referred to in paragraph 1 or the information relating to the change in the authorisation of the non-executive credit administrator to receive funds from the debtor to the supervisory authority of the host Member State or to the supervisory authority of the Member State in which the non-executive credit was granted, if that Member State differs from the host Member State, in accordance with the procedure laid down in Article 16.
(3) The notification referred to in paragraph 1 may be made only electronically.
(4) The detailed details of the notification, its formats and other technical details are laid down in the implementing legislation.
Performance of foreign administrator of non-executive credit in the Czech Republic
(1) In the Czech Republic, the foreign administrator of a non-executive loan with its head office in another Member State may manage a non-executive loan or receive funds from the debtor if he is authorised to carry out such activities on the basis of an authorisation granted to him by the supervisory authority of his home Member State.
(2) If the Czech National Bank is informed by the supervisory authority of the home Member State of the foreign non-executive credit administrator based in another Member State of its intention to manage the non-executive credit in the Czech Republic, the Czech National Bank shall confirm receipt of such information to the supervisory authority of the home Member State of the non-executive credit administrator based in another Member State without undue delay.
(3) The foreign administrator of a non-executive loan based in another Member State may manage a non-executive loan in the Czech Republic or receive money from the debtor
(a) from the date on which it receives information from the supervisory authority of its home Member State that the Czech National Bank has confirmed receipt of the information referred to in paragraph 2; or
(b) two months after the Czech National Bank has been informed by the supervisory authority of the home Member State in accordance with paragraph 2.
MARKET WITH NON-CONSOLIDATED CREDIT
Obligations of the creditor when offering non-executive credit for the transfer
Information on non-performance loans offered
(1) A bank, savings bank and credit cooperative, a foreign bank based in another Member State and a foreign bank based in a Member State other than a Member State operating in the territory of the Czech Republic, shall, when offering a non-executive loan to a credit trader, provide information on the non-executive loan on the basis of which a credit trader can assess the value and return of the non-executive loan before its transfer, in a separate document, the form of which is laid down in a directly applicable European Union regulation implementing Article 16 of Directive 2021 / 21671 of the European Parliament and of the Council.
(2) A person offering a non-executive credit under paragraph 1 shall ensure that the data provided are not misused or is not disclosed without legal justification.
(3) Where a bank, savings and credit cooperative, a foreign bank located in another Member State or a foreign bank having its registered office in a Member State other than a Member State that carries on its business in the Czech Republic, a non-executive loan to another bank, savings and credit cooperative, a foreign bank having its registered office in another Member State or a foreign bank having its registered office in a Member State other than that of the Czech Republic, it shall provide that person with information on non-executive credit in a separate document, the form of which is laid down by the directly applicable European Union law implementing Article 16 of Directive (EU) 2021 / 21671 of the European Parliament and of the Council.
Reporting of transferred non-performance loans
(1) A bank, savings and credit cooperative, a foreign bank established in another Member State and a foreign bank established in a Member State other than a Member State that carries on its business in the Czech Republic, a credit trader who has its registered office or its head office in a Member State, and a credit trader pursuant to Article 23 (1), provide the Czech National Bank with information on non-performing loans transferred to a credit trader every six months.
(2) The information referred to in paragraph 1 shall include at least:
(a) the standardised international legal entity identifier of the credit trader;
(b) where the identifier referred to in point (a) is not assigned, the identity of the credit trader and members of his statutory body, supervisory authority or other similar body of the legal person and persons having a qualifying interest in it and the address of the credit trader;
(c) aggregate outstanding debt from the non-performing loan transferred;
(d) the number and volume of non-performing loans transferred; and
(e) an indication of whether the transfer involves a non-executive loan concluded with the consumer and the types of potential assets that provide the non-executive credit.
(3) If the Czech National Bank considers it necessary for the proper exercise of supervision, it may provide that the obligation referred to in paragraph 1 shall apply on a quarterly basis.
(4) The Czech National Bank shall transmit without undue delay the information referred to in paragraph 2 and any other information necessary to carry out its tasks to the competent authority of the home Member State of the credit trader.
(5) The notification referred to in paragraph 1 may be made only electronically.
(6) Detailed details of the particulars of the notification, its formats, deadlines and other technical formalities are laid down in the implementing legislation.
Credit Trader and its Obligations
Obligations of the credit trader
(1) Where a consumer is a debtor of a non-executive credit, a credit trader having its registered office or its head office in a Member State shall be obliged to conclude a written contract with the person authorised to manage the non-executive credit which the consumer undertakes to manage on behalf of the credit trader. This does not apply if the credit trader is the administrator of a non-executive credit or non-bank consumer credit provider under the Consumer Credit Act.
(2) A credit trader having its registered office or head office in a Member State may entrust the management of a non-executive credit only to a person authorised to manage a non-executive loan by a written contract which the latter undertakes to manage the non-executive loan on behalf of the credit trader.
(3) Where a credit trader enters into a contract pursuant to paragraph 1 or 2, the obligations of the credit trader under Paragraph 20 are fulfilled by the person authorised to manage the non-executive loan that has entered into the contract with him.
Information about the person authorised to manage a non-executive loan
Contents
ČÁST PRVNÍ
§ 1
§ 2
§ 3
ČÁST DRUHÁ
HLAVA I
§ 4
HLAVA II
§ 5
§ 6
§ 7
§ 8
§ 9
§ 10
§ 11
§ 12
§ 13
§ 14
§ 15
§ 16
§ 17
§ 18
ČÁST TŘETÍ
HLAVA I
§ 19
§ 20
HLAVA II
§ 21
§ 22
§ 23
ČÁST ČTVRTÁ
§ 24
§ 25
§ 26
§ 27
§ 28
§ 29
ČÁST PÁTÁ
§ 30
§ 31
§ 32
§ 33
§ 34
§ 35
§ 36
ČÁST ŠESTÁ
§ 37
§ 38
§ 39
§ 40
ČÁST SEDMÁ
HLAVA I
§ 41
§ 42
§ 43
§ 44
§ 45
HLAVA II
§ 46
§ 47
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Regulation Information
| Citation | Act No. 84 / 2024 Coll., on the Non-Performance Credit Market |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 11.04.2024 |
|---|---|
| Effective from | 01.05.2024 |
| Effective until | - |
| Status | Valid |
Parliamentary Paper:
Paper No. 472
The regulation text is for informational purposes only.
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