Attention Creditors! Collecting Claims Made Easier in Europe
Good news for Dutch entrepreneurs having a monetary claim
against a debtor in a Member State of the European Union. The EC
Regulation creating a European order for payment opens a swift,
easy and cheap way for Dutch creditors to collect undisputed
monetary claims against debtors in foreign countries.
Since the EC Regulation creating a European order for payment
procedure (the "Regulation") entered into force on 12 December
2008, creditors may apply for a European payment order (an "EPO")
to the court in the country of the debtor. The Regulation applies
to all Member States except Denmark.
It is possible to apply for the EPO for cross-border claims in
civil and commercial matters in cases that are not disputed by the
debtor. In order to be eligible for the EPO, it must be possible to
express the claim in money. The amount that may be claimed is not
subject to a maximum, since the size of the claim has usually
nothing to do with the claim being disputed or undisputed.
Nevertheless, higher claims are more likely to be opposed.
The procedure to be followed is uniform in all European Member
States. The applicant can use a standard application form that is
the same in all Member States. It is not necessary to be
represented by an attorney. The EPO procedure therefore saves time
and holds down costs. Moreover, it lowers the language barrier.
The application form has to be filed with the court designated
for that purpose on the basis of international rules of competency
in the country of the debtor. It is not necessary to submit written
evidence, but the creditor will have to describe a few elements of
evidence in the application.
If the conditions for submission of an application have been
met, the court will issue an EPO. The debtor may defend himself
within thirty days of service of the EPO. The standard statement of
opposition does not have to be supported by reasons. If no
statement of opposition is filed within thirty days after service
of the EPO, the EPO can be enforced. This is done directly by an
enforcement agent in the country of the debtor, without further
judicial intervention.
An admissible statement of opposition from the debtor
automatically leads to the termination of the EPO procedure. The
creditor may then choose either to continue the EPO procedure in a
defended action before the foreign court, or to end the EPO
procedure.
The Dutch legislator is currently preparing the European
Payments Implementation Act in order to adapt Dutch law to the
Regulation. This bill is currently in the Dutch Senate for
treatment. Meanwhile the EPO procedure can be followed already,
because the Regulation has direct effect in the law of all Member
States.