Preamble

In 2008, the members of the Bundesvereinigung für Kreditankauf und Servicing e.V. (BKS) adopted the Code of Conduct in which they undertake to comply with processing standards. With this Code of Conduct, BKS provides a common basis for responsible, entrepreneurial behaviour and supports its member companies in responding to the different framework conditions on the German market and in meeting the challenges of social responsibility. The Code of Conduct is therefore intended to emphasise the interests of BKS and its member companies in fair, sustainable, responsible and ethical principles of action.

Task
Balancing global business and national standards

• BKS represents the interests of credit (receivables) buyers in Germany.
• Against this background, we monitor the financial sector.
• We are convinced that the refinancing of credit institutions is important for the continued existence of the German financial market.
• Promoting the professional organisation of loan sales and the subsequent processing of non-performing loans (NPLs) by the loan buyer itself or an affiliated debt collection company (servicer) offers added value for both the loan creditor and the borrower.
• We give the loan purchaser sector a voice, contribute to the functioning of this important market and define quality standards for the actions of loan purchasers.

We are in favour of a largely free financial sector that regulates itself beyond the legal framework by means of associations such as the BKS.

Laws
Compliance with the law is the basis of every trade.

• Compliance with the applicable laws and other legal framework conditions forms the cornerstone of our members’ business activities.
• Every market participant should be able to take advantage of their opportunities on the German market if they respect the laws and values of this country.
• The rights of borrowers/debtors and third parties involved must be observed just as strictly as the rights of creditors.
• Violations of the law by members of BKS are not accepted.
• The BKS and its members attach particular importance to data protection and banking secrecy.
• The preservation of informational self-determination and the protection of privacy as well as the security of data processing are core concerns for the BKS and its member companies. The greatest possible care and strict confidentiality are observed when collecting, storing and processing borrower/debtor data. Only data that is absolutely necessary for the performance of the activity is processed. In addition, the BKS and its member companies undertake to comply with the principles of transparency, data avoidance and data economy in a special way.
• BKS members base their actions on generally accepted moral principles and values, in particular transparency, integrity, honesty, openness and non-discrimination based on gender, age, race, religion or ideology and ethnic origin.

Members
We are strong as a group

• Members can rely on the BKS to represent their interests in the opinion-forming process at all relevant institutions.
• We consider it our duty to clearly distinguish ourselves from dubious market participants, to maintain and further develop the good reputation of our industry.
• The members of the BKS are committed to the quality standards defined in the Federal Association for the process of NPL sales and their subsequent processing, over and above the legal requirements and framework conditions.
• We do not accept violations of our applicable standards and rules by members.

Borrower/debtor and guarantor.
Where there are rights, there are also obligations

• It is not only respect for fellow human beings that requires BKS members to always endeavour to find an amicable solution with borrowers/debtors and guarantors:
• We are convinced that a co-operative approach makes the most economic sense for all parties.
• Borrowers/debtors and guarantors can rest assured that they will be supported by BKS members in their search for redemption/rescheduling options for their loan/collateral.
• If the realisation of collateral, in particular the sale of a collateral object, is the only way to redeem the loan or debt, the BKS member will of course assist with the best possible marketing/valuation.
• However, we consider it the duty of a borrower/debtor to take responsibility for his situation and his previous actions. They should be open to constructive proposals for resolving their debts and actively co-operate in reaching agreements. Agreements made must also be honoured by the borrower/debtor.

Editing processes
Quality is measurable

• We expect understanding, respect and openness for each other from all parties involved in NPL transactions – from the creditor, loan seller, buyer, servicer and borrower/debtor.
• If the borrower/debtor is professionally represented, this representative will of course be involved in finding a quick, amicable solution.
• In addition to the statutory provisions, BKS defines the following process standards for the processing of loans/receivables:
• The buyer of the receivable or its servicer informs the borrower/debtor promptly in writing of the transfer of the receivable in accordance with the statutory provisions.
• The debt buyer or its servicer introduces itself to the borrower/debtor in writing and names contact persons and contact details.
• Immediately after familiarisation with the specific debt exposure, the debt buyer or its servicer will contact the borrower/debtor (or responsible representative) to discuss the next steps in person or by telephone.
• The debt buyer and its servicer will fully honour the security agreement underlying a land charge (abstract security) and will not claim that they were unaware of the security agreement.
• Coercive measures will only be taken if there are no other promising, prompt solutions.
• Basic rules of ethical behaviour are observed by the debt buyer and its servicer.