Cap. 645 Art. 15Obligations of credit purchasers.

(1) A credit purchaser that is domiciled or has its registered office in Malta shall appoint an entity as referred to in article 4(a)(i) or (iii) or a credit servicer, to perform credit servicing activities in respect of a creditor’s rights under a non-performing credit agreement, or of the non-performing credit agreement itself, concluded with consumers.

(2) Without prejudice to the provisions of sub-article (1), when a credit purchaser domiciled in the European Union, or that has its registered office or, if under its national law it has no registered office, its head office in the European Union purchases a creditor’s rights under a non-performing credit agreement, or the non-performing credit agreement itself, concluded with a consumer domiciled in Malta, in addition to a creditor’s rights under any other credit agreement, or any such other credit agreement itself, it shall appoint an entity as referred to in article 4(a)(i) or (iii) or a credit servicer, to perform credit servicing activities in respect of such creditors’ rights, or such credit agreements themselves.

(3) When a credit purchaser is not domiciled in the European Union, or does not have its registered office, or if under its national law it has no registered office, its head office in the European Union, its designated representative shall appoint an entity as referred to in article 4(a)(i) or (iii), or a credit servicer, except in cases where the designated representative itself is an entity as referred to in article 4(a)(i) or (iii) or a credit servicer, to perform credit servicing activities in respect of a creditor’s rights under a non-performing credit agreement, or of the non-performing credit agreement itself, concluded with:

(a) natural persons, including consumers and independent workers; and, or

(b) micro, small and medium-sized enterprises (SMEs), as defined in Article 2 of the Annex to Commission Recommendation 2003/361/EC:

Provided that the provisions of this sub-article shall also apply when a credit purchaser as referred to in this sub-article purchases a creditor’s rights under a non-performing credit agreement, or the non-performing credit agreement itself, concluded with a consumer domiciled in Malta, in addition to a creditor’s rights under any other credit agreement, or any such other credit agreement itself.

(4) A credit purchaser shall not be subject to any additional requirements for the purchase of a creditor’s rights under a non-performing credit agreement, or of the non-performing credit agreement itself, other than as provided for in accordance with this Act and any regulations made thereunder, or Credit Servicing Rules and Conduct of Business Rules issued thereunder, or by any applicable provisions of consumer protection law, contract law, civil law or criminal law.

(5) The relevant European Union law and national law concerning in particular the enforcement of contracts, consumer protection, borrowers’ rights, credit origination, bank secrecy rules and criminal law shall continue to apply to the credit purchaser upon the transfer of the creditor’s rights under the credit agreement, or of the credit agreement itself, to the credit purchaser.

(6) Without prejudice to any national and international laws on promissory notes and bills of exchange, the level of protection provided under European Union law and national law to consumers and other borrowers, as well as insolvency laws, shall not be affected by the transfer of the creditor’s rights under the credit agreement, or of the credit agreement itself, to the credit purchaser.

(7) The provisions of this Act and of any regulations made thereunder, Credit Servicing Rules and Conduct of Business Rules issued thereunder shall be without prejudice to the power of the competent authority and any other national authority, agency and, or body at law to require information from credit purchasers regarding a creditor’s rights under a credit agreement, or the credit agreement itself, and its performance.

(8) Credit purchasers shall be prohibited from engaging natural persons to service the credit agreements that they have acquired.

(9) A credit servicer or entity as referred to in article 4(a)(i) or

(iii) appointed in terms of this article shall comply, on behalf of the credit purchaser, with the obligations imposed on the credit purchaser under sub-articles (3) to (5) and articles 16 and 18. In cases where no credit servicer or entity as referred to in article 4(a)(i) or (iii) is appointed, the credit purchaser or its representative shall remain subject to those obligations.

(10) The competent authority may require that the credit servicer or entity as referred to in article 4(a)(i) or (iii) appointed in terms of this article complies, on behalf of the credit purchaser, with the obligations imposed on the credit purchaser in accordance with national law, including this Act and any regulations made thereunder, Credit Servicing Rules and Conduct of Business Rules issued thereunder, and any law as referred to in sub-article (6).