EU Member States to implement a common debt recovery procedure
The European Union Council reached today a final decision on the European payment order procedure, which will make it easier for the European citizens to recover uncontested debts across the borders. Following the reform’s entry into force, for example a Finnish seller can use a standard for to recover delayed payments from another EU Member State.
The objective of the measure is to simplify and speed up cross-border debt recovery and lower the cost inherent in the proceedings. The Member State’s own debt recovery systems will stay in force alongside the new, European-wide procedure. Debtors can choose whether they want to use the European payment order or proceed in accordance with the procedures prescribed in the Member State’s legislation.
For information exchange between courts and the involved parties, standard forms are predominantly used to facilitate administration and enable automated information data processing. In addition, documentation supporting the claim can be provided by using a form with an extensive list of frequently used evidence types. Payment orders may also be contested by using a standard form; however, courts must take into consideration all clearly outlined statements of objection lodged in writing.
The regulation on the implementation of the European payment order will not apply to all cases, such as those falling into the scope of family courts or bankruptcies.
Further information:
Asko Välimaa, Legislative Counsellor, tel. +358 9 1606 7708 and Mari Aalto, Senior Specialist, tel. +32 2 287 8431