The European Union said in a statement that it wants to improve the enforcement of cross-border debt collection between member states and has adopted a green paper which will make collecting monetary debts in different countries more efficient.



‘Creditors seeking to enforce a civil court order in another member state are confronted with different legal systems, procedural requirements and language barriers which entail additional costs and delays,’ said EU commissioner for justice, freedom and security, Franco Frattini.



In practice, a creditor seeking to recover a monetary claim in Europe will most commonly try to do so by a procedure which attaches or freezes a debtor?s moveable property in the hands of a third party and prevents the third party from dealing with or giving up possession of the property. Such procedures exist in most Member States and, if working efficiently, can be a powerful weapon against recalcitrant or fraudulent debtors.



However, under existing Community instruments, there is no bank attachment which can be enforced throughout the European Union.


A European procedure for the attachment of bank accounts would have protective effect blocking the debtor?s funds in a bank account without immediately transferring these to a creditor. The procedure would be subject to conditions for the granting of the order including an adequate level of debtor protection. An attachment order issued in one Member State would be recognised and enforceable directly throughout the European Union without the need for a declaration of enforceability. Such a new and self-standing European procedure would be available in addition to measures existing under national law.


An alternative might be to achieve the desired improvement in the efficacy of enforcement by harmonising Member States’ national rules on the attachment of bank accounts by means of a directive. The decision whether or not to initiate legislation in this area will be subject to an impact assessment.


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