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."
