Credit Servicer License

We acted for a credit servicer:

before the Polish Financial Supervision Authority (KNF) in proceedings to obtain
a license to conduct credit services

As of February 19, 2025, the Act of December 20, 2024, on Credit Servicers and Credit Purchasers (UPOK) has been in force in Poland. It implements Directive (EU) 2021/2167 of the European Parliament and of the Council of November 24, 2021, on credit servicers and credit purchasers.
As a result, conducting activities in the field of credit servicing requires obtaining a license from the Polish Financial Supervision Authority (KNF) to conduct credit servicing activities (subject to the exceptions provided for in the Act).

The UPOK defines credit servicing activities as conducting business activities consisting of performing, with respect to the creditor’s rights held by credit purchasers arising from a non-performing credit agreement or a non-performing credit agreement, at least one of the following activities:

1. recovering from the borrower the lender’s receivables arising from or related to the credit agreement,
2. renegotiating the terms of a credit agreement with respect to the creditor’s rights arising therefrom, or renegotiating the terms of a credit agreement in accordance with the instructions of the credit purchaser, where the entity servicing the credits is not a credit intermediary within the meaning of Article 5(3) of the Act of May 12, 2011, on consumer credit or a mortgage credit intermediary within the meaning of Article 4(15) of the Act of March 23, 2017, on mortgage credit and on the supervision of mortgage credit intermediaries and agents,
3. receiving and reviewing complaints and grievances concerning the enforcement of the lender’s rights arising from the credit agreement or the performance of such agreement, as well as appeals against such complaints and grievances,
4. informing the borrower of changes to the method of credit repayment or the interest rate, or of amounts due and fees borne directly by the borrower.

The application for a license must include, among other things:

1. articles of incorporation, articles of association, or partnership agreement,
2. documents confirming compliance with the conditions specified in the UPOK,
3. a description of internal procedures and policies regarding the conduct of loan servicing activities,
4. the applicant’s audited financial statements for the last 3 years preceding the year of application, together with resolutions approving them, and, if the applicant has been in operation for less than 3 years, for that period;
5. statements by members of the applicant’s management bodies confirming compliance with the requirements set forth in the UPOK
6. a draft agreement for the delegation of activities to a loan servicing entity—if the applicant intends to cooperate with a loan servicing provider;
7. confirmation of payment of the fee.

DLK’s advisory included:

• Assisting the applicant in preparing the necessary internal documentation
• Drafting, compiling, and submitting the license application to the Polish Financial Supervision Authority (KNF)
• Representing the applicant before the Polish Financial Supervision Authority (KNF)