New rules for service of payment orders: how will they affect creditors and debtors?

As of 1 July 2024, there have been major changes to the process of serving payment orders that will significantly affect both creditors and debtors. These changes were part of an amendment to the Civil Procedure Code and are aimed in particular at making the debt recovery process more efficient and faster.

Dual service of payment orders

One of the main changes is the introduction of two modes of service of payment orders, depending on whether the addressee has a data box or not.

If the order for payment is sent to the debtor's data box, the so called "fiction of service" will be used. This means that if the debtor does not open the order for payment in his or her mailbox within ten days of its delivery, it will be deemed to have been served, regardless of whether or not the debtor has actually read the message containing the order for payment.

In cases where the order for payment is not served by means of a data box, the existing rules remain unchanged. This means that if the addressee does not collect the mail not delivered to the data box, the order for payment will not be deemed to have been served and the court will cancel it. If the debtor remains passive, such cases may be decided by way of a recognition judgment or, for example, by default judgment (if a hearing is held).

Advantages for creditors: Faster route to recovery

For creditors, the new rules represent a significant simplification of debt recovery, especially if the debtor is inactive and does not communicate, even though he has an active data mailbox. Previously, even in cases where the debtor had an active mailbox, the court had to invite the debtor by a qualified notice to make a written statement of the case and, in the event that it did not recognise the claim, to elaborate on its defence and attach evidence, and, in the situation where the debtor remained passive after the notice, to subsequently issue a judgment for recognition. However, it will now be sufficient for the court to serve the order for payment in a data box and if the debtor does not respond within ten days, the order for payment will be deemed to have been served even if the debtor does not actually open the data box. In such a case, the time limit for lodging an appeal (opposition) starts to run, which may expire without the debtor having any knowledge of the service of the order for payment. The creditor will then be able to initiate the enforcement action, as he will have a final and enforceable order for payment.

The new legislation will therefore significantly reduce the time for the creditor to be able to obtain a final and enforceable order for payment. This change will thus enable creditors to obtain an enforcement order more quickly and thus proceed to the enforcement of their claims.

Risks for debtors: ignoring the data box may have consequences

For debtors, this change poses some risk, especially for those who have a data box but do not actively use it. If a debtor does not check his or her data box regularly, he or she may be served with a payment order without knowing it and after ten days the order will be deemed to have been served. At the same time, the time limit for lodging an appeal (opposition) may expire. The debtor may thus easily find himself in a situation where he only becomes aware of the court proceedings when enforcement proceedings are initiated against him.

It is therefore important that everyone who has a mandatory data box regularly checks its contents. It may be advisable to set up notifications for incoming messages to avoid a situation where such important messages go unnoticed. Borrowers in particular should be aware that inaction or ignoring messages can lead to unpleasant legal consequences.

Conclusion

The changes to the service of payment orders brought about by the amendment to the Code of Civil Procedure are intended to streamline processes on the part of both courts and creditors. For debtors, however, they imply the need for greater attention and responsibility when checking the data box. It is therefore important to pay attention to this new regulation and adapt to it so that debtors do not experience unwanted surprises or legal complications.