You’re a CEO and you have the firm desire to increase your turnover internationally? But you fear that the differences in terms of legislation and behaviour in the target countries, particularly in terms of payment delays represent a significant risk to your export ambitions? Rest assured, solutions exist to solve your claims in Europe. Just identify them. We help you to see more clearer in this article.
The risk of unpaid, the main obstacle for export
The risk of non-payment remains the main threat to exports for 58% of French companies according to the latest Euler Hermès 2018 export barometer.
Taking legal action against bad payers in other member states of the European Union often seems too complicated, too long or too expensive (translations, travel, additional legal fees locally ...). Is this really the case?
Not always, we explain why.
Capitalize on legal recovery procedures common to the EU countries.
To recover your money in Europe and to solve more quickly the litigations with your debtors, it is possible thanks to certain measures and common European provisions for all the Member States often unknown or badly judged:
- European Enforcement Order: Created in 2004, it allows for the automatic recognition and enforcement of judgments, court settlements and authentic instruments for undisputed cross-border claims without the need to return to a judge.
- European order for payment: set up in 2006, it allows, thanks to the standard forms, to proceed to the recovery of undisputed claims in civil and commercial claims without asking for a declaration of enforceable force (exequatur) everywhere in the European Union except in Denmark. 12577: this is the number of European payment order applications filed in the EU between 2012 and 2013. (source EC Report of 13/10/2015).
- European Small Claims Procedure: created in 2007, it allows the settlement of litigations in civil and commercial claims not exceeding 2000 €. The decision rendered is recognized and enforced in other Member Countries without having to resort to exequatur.
- Brussels Regulation I Bis: adopted on December 12th 2012 by the Parliament and the European Council, it applies to actions brought January 10th 2015. It maintains the principle of recognition of decisions by operation of law and removes the exequatur procedure issued in different Member Countries. You have a judgment delivered by a French court and you want to execute it in another EU country? From now on, the only formality necessary for your judgment to be effectively enforceable in another Member Country is to forward to the competent authority, a copy of your judgment and the certificate attesting its enforceability.
- European Order for conservatory seizure of Bank Accounts: applicable since January 18th 2017, it allows a jurisdiction of an EU country to freeze funds in a debtor's bank account in another EU country. The procedure is fast and takes place without the debtor being informed and without his prior hearing. This "surprise effect" prevents the debtor from moving, concealing or spending money.
What about European countries that are not part of the EU?
Again, solutions exist.
Signed on October 30th 2007 and entered into force on May 1st 2011, the new Lugano Convention replaced the previous agreement of 1988. The purpose of this convention is to facilitate the circulation of judicial decisions between EU Member Countries with Norway, Iceland and Switzerland, its aim being to align with the provisions of Regulation 44/2001 of the European Council on Jurisdiction, Recognition and Enforcement of Judgments in Civil and Commercial Matters.
Entrust your recovery actions to a partner who knows how to deal with the specificities of each country in Europe.
Each country has its specificities: legislation, economic context, local practices, language, culture ... These many variables influence the path to follow for an efficient debts collection in Europe and all over the world.
Make sure that your partner has, on top of legal & debt collection skills:
- Experts who speak fluently the language (s) that is (are) concerned, and are aware of the legislation, the habits and customs of the countries in which your debtors are located,
- A proven network of local partners (debt collection & credit reporting colleagues, lawyers, bailiffs ...) that can quickly act on your most sensitive claims.
If you are looking for a personalized solution for a proven and efficient international debt collection service, FRANCE CREANCES will determine with you the best approach for your situation.
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