New debt recovery rules enter into force

Businesses, particularly small and medium-sized enterprises (SMEs), will be able to benefit from new EU rules to recover debt from debtors in other EU countries which came into force on Wednesday. About 600 million Euros are lost every year due to long and costly legal procedures preventing companies to recover money they are owed outside their home country. The proposed European Account Preservation Order (EAPO) can help companies by offering them a simple and cost-effective way to block funds that are owed.

Unpaid bills can seriously affect the bottom line of a company, says the EU’s Commissioner for Justice and Consumers Vera Jourova: “As a former entrepreneur, I know that Particularly small businesses often cannot afford the legal support necessary to bring back the money they are owed”.

“Thanks to the European Account Preservation Order, businesses and citizens will be able to recover millions in cross-border debts by requesting that the amount owed to them is blocked on the debtor’s bank accounts”…

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