What is true about European Payment Orders?
In a specific case handled by the Rhetor Law Firm with the decision No. 309/21-2-2019, the Thessaloniki County Court applied the European Regulation to a cross-border dispute, accepting the factual and legal claims of the applicant creditor, whose claim for money will be directly met.
On 1.1.2007, Regulation (EC) 1896/2006 was established and regulates the procedure for the European order for payment. The activation of this European mechanism aims at the fast and effective collection of uncontested claims, as late payments are one of the main causes of bankruptcy that threatens particularly small and medium – sized enterprises.
Both the content and the effectiveness of payment order procedures in the Member States of the European Union vary considerably. In addition, in many cases the existing national procedures are inapplicable in cross-border cases.
It is therefore clear that the prospect of national payment order procedures is particularly difficult or impossible in the case of cross-border disputes. These obstacles demand the intervention of the European legislator to ensure the existence of equal terms for creditors and debtors throughout the EU.
The aim of a European order is to simplify, speed up and reduce the costs of cross-border disputes regarding the uncontested financial claims and to ensure the free circulation of European payment orders in all Member States. In this way, the creditor’s claim is directly met, even if it results from a definite claim and reflects the normality of business life.
Rhetor Law Firm and its qualified associates, checking the conditions for the application of the above regulation, can assist in the process of meeting your financial claims and within the EU.
Attorney at law