European Payment Order & Small Claims Procedure

Banking & FinanceEuropean Payment Order & Small Claims Procedure

What is the European Payment Order?

The European Order for Payment policy was presented by EC Regulation 1896/2006 and is applicable to all Member States. The procedure permits creditors to retrieve undisputed civil and commercial claims utilizing a simplified policy.

The standard European Payment Order form can be seen here and it is available in all languages here. In these links, you can review and find out which courts can issue a European Payment Order and where to send the payment form.

How to file European payment order?

After filing Form A with all the essential information of parties and features of the claim, the procedure of European payment order can be started. Court will examine and check the application whether has correct data or not. The court must state its decision within 30 days after the filing and if it approves the application will issue the European Payment Order.

How to respond to the European payment order?

If the court approves the claimant’s payment order, the next step of the court will be notifying the defendant about the European payment order. Defendant naturally has two choices to pursue: paying the order or contesting it in 30 days. 

If there is no objection by the defendant regarding the payment order, the order automatically becomes enforceable. Most of the time, however, the defendant will be contesting the payment order and as a claimant, you will have to select one of the paths below:

  1. Filing a lawsuit in the normal civil law courts under the scope of national law,
  2. Following the European Small Claims Procedure,
  3. Relinquish the claim.

Enforcement of the European Payment Order

To enforce a payment order in a Member State, the enforcement administrations of the Member State should be notified with a copy of the European Payment Order. Yet enforcement must take place in harmony with Member State’s national regulations. Noting that, an official translation might be needed in case of the European Payment Order is prepared in another language rather than English. For further information regarding the enforcement of a European Payment Order, please consult the relevant section.

The first amendment adds an alternative of a continuance of the proceedings in a case of lodging a declaration of opposition following the rules of Regulation (EC) 861/2007 specifying a European Small Claims Procedure. 

The second amendment expands the application of the European Small Claims Procedure to declarations worth up to 5000 euros.

For additional knowledge in this regard please consult the new text of Article 17 of the Regulation together with Article 2 of Regulation (EC) 861/2007, as amended by Regulation (EU) 2015/2421.

Corresponding links:

Practice Guide for the application of the Regulation on the European Order for Payment (5809 Kb) 

European payment order – notifications of the Member States and a search tool helping to identify competent court(s)/authority(ies)

Rules and Regulations

EC Regulation 1896/2006

EC Regulation 2017/1260 (from 14 July 2017)

Act of Sederunt (Sheriff Court European Order for Payment Procedure Rules) 2008

Act of Sederunt (Sheriff Court Rules Amendment) (European Small Claims Procedure and European Order for Payment Procedure) 2017

Forms

Regulation forms:

Costs

Court fees are expected for filing these declarations in a trial, and the latest costs can be checked in the Sheriff’s Court Fees.

Since cost immunity may be applicable for some applicants it is better to check distinct state benefits. Further information can be visited in the Court Costs and the cost immunity application form.

Finally, consultant expenses are not included in the fees if you have requested a consultant to help with your European payment order. If you have, requesting your counselor will be a better way to get full expenditures.

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