European payment order as a means of cross-border debt collection in the European Union

Abstract

This article examines the European Payment Order (EPO). The importance of this instrument as a component of the principle of the EU internal market is emphasized. It has been argued that as in any trade or other commercial relationship, there is a risk of arrears, which creates problems for creditors. Problems can be further complicated by the fact that the debtor is located outside the state in which the creditor is located, and therefore it is a different state, with different laws, approaches to dispute resolution, etc. The main stages of the EPO procedure are considered. It is emphasized that the procedure looks simple in general, but the main drawback is immediately noticeable - for a dispute it is enough to simply submit an application without even providing sufficient grounds for the dispute. Thus, it allows the debtor to delay the case rather easily, transfer it to the national court (although it provides that the debtor must react within 30 days, which may not always happen in practice, especially if the debtor does not use the services of a qualified legal advisor). Also important is the fact that the EPO procedure is used in all EU member states, except for Denmark. This means that its application is truly universal and can be applied to almost any debtor in the European Union. It is indicated that EU Regulation No. 1896/2006 of December 12, 2006 applies to civil and commercial matters in cross-border cases, and also provides for exceptions when it cannot be applied. It was concluded that the main drawback of the procedure is that it would be more expedient if the debtor was obliged to provide at least minimal arguments, reasons for filing such an objection. This would allow to avoid groundless objections aimed solely at prolonging the resolution of the debt issue. In addition, it would force debtors to take the objection procedure more seriously and encourage them to seek help from qualified legal counsel. Since the services of such a legal advisor can be quite expensive, the debtor could weigh the expediency of such - for example, whether it makes sense to spend money and resources on such services, if the grounds for the claim are truly unconditional and the chances of a challenge already in court are zero. Instead, the debtor can very easily deny the application without any additional reasons. It was concluded that, at the same time, after Ukraine becomes a member of the European Union, it will be useful to join this procedure and it will be necessary to develop the main national features of the EPO application.