Regulation on European Account Preservation Order

The regulation of the European Parliament and the Council (EU) No 655/2014 of 15 May 2014 that establishes a European Account Preservation Order procedure to facilitate cross-border debt recovery in civil and commercial matters, about which adoption we have already informed you (see http://www.baroch-sobota.en/european-account-preservation-order), became effective (18^th January 2017).

The goal of the regulation is to facilitate the enforcement of the pecuniary claims arising from the civil and commercial matters in cross-border cases within the EU.

The significant advantage for the creditors is the fact that the debtor shall not be notified of the application for a Preservation Order or be heard prior to the issuing of the Order. Therefore the debtor does not have the possibility to remove, hide or spend the financial means.

Nevertheless the regulation also regulates means to protect the debtor so the Preservation Order will not be misused by the creditor such as the obligation of the creditor to provide security in stated situations. Beside that the creditor shall be liable for any damage caused to the debtor by the Preservation Order due to fault on the creditor´s part.