Brussels, 2014-02-21

With regards to the objective of simplifying cross-border debt recovery, in the future it shall be possible for businesses as well as private persons to seize debtors bank accounts Europe-wide.

The EU council and the members of the Judicial Committee of the European Parliament have already agreed on a relevant draft law. Advantages of the European Account Preservation Order (EAPO) compared to national proceedings shall be lower prices and greater speed.

"The regulation will allow creditors to use an efficient and standardized procedure for obtaining an EAPO under the same conditions in all member states.”, confirmed Raffaele Baldassarre (European Parliament).

The Purpose of the Act is it to make it possible for creditors to obtain an EAPO under the same conditions, regardless of the competent courts´ country. Furthermore creditors should be allowed competence to obtain information about the debtors´ bank account residence. At the same time costs and deferral for creditors, which obtain an EAPO in cases with cross-border reference and want to enforce it, shall be reduced.

According to estimates by the EU Commission, businesses can save ca. 600 Million EUR annually on court costs. Due to a faster processing it should also prevent the debtor from transferring money in time into a bank account in another country.

To avoid misuse by the creditor, a liability clause was added to the draft law. Debtors are thereby able to demand compensation from the creditors, if the EAPO has been executed unjustifiably.

Before the EAPO can come into force, the European Parliament as well as the EU council must formally agree. The vote is scheduled for April 2014.

Further information here