MEPs approved new procedures for resolving uncontested debts across EU borders this week. The new European Order for Payment procedure is intended to benefit individuals and businesses alike.
At the moment, debt claims can only be pursued using national legal systems, with the claim dealt with in the jurisdiction of the defendant debtor. This creates problems for claimants, who sometimes have to make claims in a foreign country. The new procedure, approved by the European Parliament on Tuesday and by Member States at the Justice and Home Affairs Council on 2nd December, should make debt collection easier. The European Order for Payment (EOP) sets out a uniform procedure to obtain a judgment that will be automatically recognised in all EU countries. It will only apply to uncontested claims. If the debt itself is contested, it will still need to be adjudicated by civil court processes. Another new procedure, the European Small Claims Procedure (ESCP), is intended to help claimants in contested matters. "This is a pragmatic and practical piece of EU law,” said Arlene McCarthy MEP, Rapporteur for the Order for Payment. “Our goal is giving business and consumers a simple and affordable system to recover monies owed to them by companies or individuals in other Member States."
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