Content:

1. What is European Payment Order?
2. What is considered a cross-border case?
3. What are uncontested claims?
4. How much can the claimant recover?
5. Who can bring up a claim?
6. What means civil and commercial matters?
7. Why you should use EPO procedure and how EuroClaim can assist you?

1. What is a European Payment Order?

Over time, all member states of the European Union (EU) agreed that the need for strong consumer rights protection, a growing number of late payments and the need to foster cross-border business transactions demand a swift and efficient recovery of outstanding debts over which no legal controversy exists from debtors all around Europe.

At the end of 2006, the growing demand for legal clarity in EU cross-border disputes resulted Regulation (EC) No 1896/2006 (EOP Regulation) enactment by creating a European order for payment procedure (EOP).

The purpose of this Regulation was to simplify, speed up and reduce the costs of litigation in cross-border cases concerning uncontested pecuniary claims. Also, the Europeans pursued to permit the free circulation of court decisions throughout the EU without a need for unnecessary enforcement proceedings in the different Member States.

2. What is considered a cross-border case?

A cross-border case is one in which at least one of the parties is domiciled or habitually resident in a Member State other than the Member State of the court seized. In other words, that means that if the Claimant lives in France whereas the Defendant lives in Spain and according to the agreement concluded between the parties, the French court has jurisdiction to hear the case between litigants that means this should be held as a cross-border case. More answers about EPO procedure in our FAQ section.

3. What are uncontested claims?

A claim is considered uncontested in the following situations:

• the debtor has expressly agreed to it by admission;

• the debtor has never objected to it;

• the debtor has not appeared or been represented at a court proceeding.

4. How much can the claimant recover under a European Payment Order?

Contrarily to ESCP, there is no upper limit of value to a claim within the scope of the EPO. Therefore if the claim under EPO is successful, the Claimant can recover all amount or collect all debt, which is owed by the debtor.

5. Who can bring a claim?

EPO can be used by individuals and companies encountering cross-border disputes. However, in order to be eligible to use EPO, the dispute between the parties should be monetary and it has to be related to a civil and commercial matter.

6. What means civil and commercial matters?

Although the EPO Regulation itself does not define the disputes of civil and/or commercial matters, it could be distinguished that such disputes can arise from:

• obligation to perform a money payment;

• pecuniary damages of illegal actions;

• delivery of goods or other property;

• other disputes between the parties of a civil and commercial nature.

EPO Regulation expressly excludes from its scope of application the following categories of cases:

• revenue, customs and administrative matters as well as the liability of the State for acts and omissions in the exercising of the State’s authority;

• rights in property arising out of a matrimonial relationship wills and succession;

• bankruptcy, proceedings relating to the winding-up of insolvent companies or other legal persons, judicial arrangements, compositions and analogous proceedings;

• social security;

• claims arising from non-contractual obligations, unless:

• they have been the subject of an agreement between the parties or there has been an admission of debt, or

• they relate to liquidated debts arising from joint ownership of property.

7. Why you should use European Payment Order procedure and how EuroClaim can assist you?

EPO is fast, reliable and enforceable all around Europe. EuroClaim’s platform has a mission to assist clients in recovering money from their debtors based in the EU, using EPO. Our experienced legal professionals prepare the claim, locate the competent court and send all relevant documents on your behalf for a reasonable service fee.

The only thing that the client needs to do is pay an official court and a small fee that depends on the jurisdiction and the amount of the claim. However, the expenses that the claimant incurred can be reimbursed if the case is won. If you have suffered damages because of somebody’s illegitimate actions and you are confident about their lawfulness, do not hesitate to contact EuroClaim. We are ready to restore a justice!