Regulation of the European Account Preservation Order should facilitate the cross-border debt recovery in civil and commercial matters in the EU.
Under this regulation, the motion to impound financial means on an account has to be submitted to a court. It is possible to submit it even before the initiation of the proceedings in the very same matter (the legal action). The creditor has to establish the existence of an urgent need to be provided with the order. At the same time there would have to be a real risk of thwarting or fundamental decrease of chances for the subsequent successful receivables enforcement proceedings against the debtor in case that the order is not issued.
The important benefit for the creditors is that the debtor does not take part in the proceedings related to the issue of the order and he or she is only informed about it subsequently. Thus, the debtor has no chance to transfer the financial means, to hide them or spend.
The regulation further specifies the protective measures in favor of the debtor against possible misuse of the order by the creditor when it provides for the cases in which the creditor is obliged to provide an assurance. Apart from that, the creditor is also liable for the damage incurred to the debtor by issuance of the order due to creditor’s mistake.
Regulation (EU) of the European Parliament and of the Council a Rady no. 655/2014 from 15 May 2014
With effect from: 18 January 2017