New Rules You Need to Know
- The transfer of non-performing credit to investment funds has left many families unprotected in recent years.
- With the new rules finally in effect,and as DECO PROteste advocated,consumers with transferred credit now have the right to resume normal compliance with their credit,eliminating the possibility of...
- The new rules apply to credit sales made from December 10, 2025.
The transfer of non-performing credit to investment funds has left many families unprotected in recent years. but the European directive that strengthens consumer protection, whose defaulted loans are sold by banks to third parties, was only transposed into national legislation in December 2025, two years after the deadline set by the European Commission.
With the new rules finally in effect,and as DECO PROteste advocated,consumers with transferred credit now have the right to resume normal compliance with their credit,eliminating the possibility of being forced to pay off the debt at once. In addition, the protection mechanisms in case of default, such as PARI and PERSI, remain, something that was not previously provided for.
The new rules apply to credit sales made from December 10, 2025.
What is credit transfer and how does it affect consumers?
Table of Contents
When families in difficulty are no longer able to pay their credit installments on time, these are often grouped into portfolios of “non-performing loans” (in English, “non-performing loans” or NPL) and sold by banks to third parties. These companies become holders of the rights and guarantees associated with the loans, ensuring the management and collection of debts.
What changes with the new rules for the sale of bad credit?
Consumers maintain rights provided for in the initial contract
The transfer of loans to funds or management companies does not depend on the consent of consumers, although they may submit a complaint to the credit institution when this occurs.
The new rules resulting from the transposition of Directive 2021/2167, though, have vital implications for the consumer’s legal position, which cannot become more unfavorable after the sale of their credit. That is, the rights provided for in the initial credit contract
Debt collection Practices in Portugal: new Regulations and bank Practices (as of January 24, 2026)
Recent changes in Portuguese law aim to regulate the debt collection industry, particularly concerning the sale of non-performing loans by banks to third-party companies. These regulations focus on protecting debtors from aggressive or illegal collection tactics.
Increased Regulation of Credit Management companies
Under the new rules, companies purchasing debt are required to employ an authorized credit manager (gestor de créditos autorizado) responsible for all interactions with debtors and ensuring full compliance with legal requirements. The Banco de Portugal (Bank of Portugal) oversees the licensing and regulation of these companies.
Penalties for Non-Compliance
Violations of these regulations can result in significant fines,potentially reaching up to €1 million. These penalties are enforced by the Banco de Portugal, the national regulatory authority.
Prohibitions on Coercive and Harassing Tactics
The law explicitly prohibits debt purchasers from using “harassment, coercion, or undue influence” (“assédio, coação ou influência indevida”) in their debt recovery efforts. This addresses concerns raised by consumer protection organizations like DECO PROteste regarding aggressive tactics employed by some debt recovery firms. DECO PROteste has previously reported instances of intimidation used to expedite debt recovery.
Why Banks Sell Non-Performing Loans
Banks are increasingly selling non-performing loans (npls) to financial companies and investment funds to improve their financial statements and meet solvency ratios mandated by regulators. This allows them to avoid the costs associated with debt collection and enforcement.
The practice is particularly attractive to international investment funds, which can acquire these debts at discounted prices and seek to recover the full amount owed. the Banco de Portugal publishes regular reports on the state of NPLs within the Portuguese banking system.
Latest Verified Status (January 24, 2026): The regulations described above are currently in effect. Recent reports from the Banco de Portugal indicate a continued trend of banks selling npls, alongside increased scrutiny of debt collection practices. There have been no major legal challenges to the regulations as of this date.