So, the EU is at it again: putting the interests of the banks before those of its citizens, accepting their possible financial ruin. How long will it take for EU citizens to realise that this EU is not their EU? I am writing to inform you of a serious threat to the rights of borrowers and consumers arising from a proposed new EU Directive, which aims to develop a secondary market for non-performing loans. (Proposal for an EU Directive on credit servicers, credit purchasers and the recovery of collateral).
This proposed EU Directive is designed to promote the use of vulture funds and securitisation vehicles in order to move this bad debt off the banks’ balance sheets and into the opaque and unregulated shadow banking sector.