The European Commission has taken action against Bulgaria, Spain, Hungary, the Netherlands, Austria, Portugal, and Finland by referring them to the Court of Justice of the European Union for failing to implement the Non-Performing Loans (NPL) Directive into their national laws.

Among these countries, Portugal has been specifically highlighted for its non-compliance, as it has not yet transposed the NPL directive despite the deadline of December 29, 2023.

This directive is crucial for establishing a legal framework for the sale of unpaid loans, which has been occurring without adequate regulations, thereby impacting families and individuals.

The NPL Directive aims to create a secondary market for non-performing loans by setting rules for the authorization and supervision of loan managers and buyers, ultimately enhancing consumer protection.

It mandates that loan managers and buyers must act in good faith, treat debtors fairly, and respect their privacy, prohibiting harassment and misleading information.

The level of protection for individuals, particularly concerning housing loans, will largely depend on how effectively the Portuguese government incorporates this directive into its national legislation.

However, the effectiveness of this legislation may be compromised, as banks in Portugal have already sold over 40 billion euros in non-performing loans from 2013 to 2023, with ongoing sales continuing into 2024.

In response to this situation, the political party Livre plans to present a resolution recommending the transposition of the NPL directive to enhance consumer protection regarding credits sold to investment funds.

The European Commission is expected to request the Court to impose financial penalties on the non-compliant countries, taking into account the severity and duration of the infringement.

If Bulgaria and the other non-compliant countries do not address these issues promptly, the European Commission may escalate the cases to the Court of Justice.

This referral marks the first infringement case against Bulgaria in 2025, following multiple cases in previous years, highlighting ongoing compliance challenges within the EU.

Bulgaria has yet to notify the European Commission of its national measures to comply with the directive, which is essential for creating a robust secondary market for non-performing loans.