Making Good Use of the European Payment Order in France

The European Payment Order (EOP) Explained:

The European Payment Order (EOP) was established within the 2006 EU Regulation (EC) No 1896/2006 – creating A European Order for Payment Procedure. The goal was to create a simplified EU-wide procedure for litigation of uncontested cross-border debt collection claims. The procedure was able to reduce the costs and increase the efficiency of treatment of these claims. It was also meant to allow for a smooth transfer of enforceability of Orders across EU member states. The European Payment Order is currently enforceable in all EU countries, with the exception of Denmark.

The European Payment Order (EOP) procedure covers all cross-border civil and commercial matters. It makes the noted exceptions however of issues relating to:

revenue, customs or administrative matters,
state liability for acts and omissions in the exercise of state authority,
matrimonial property regimes,
bankruptcy, insolvency proceedings
social security,
non-contractual obligations, unless an agreement exists between parties

The EC Regulation on creating a European Order for Payment Procedure has had a particular influence on debts involving SMEs and b2b debts, on which rests a large part of the European economy. The reliability of this simplified procedure has increased trust between businesses and creditor-debtor relationships. It has been thoughtfully crafted to work harmoniously with national jurisdictions and has been imagined as standing independently from the national policies of the different member states (cf. Art 1.2 of Regulation (EC) No 1896/2006)

Debt Collection in France:

See: NovLaw Practical Guide to Debt Collection in France

The European Payment Order in France:

The European Payment Order simplifies cross-border debt collection of uncontested claims. It established a standard-form application for resolving debt collection disputes within the European Union. If you are an international creditor with a defaulting French debtor you have the option to file for a European Payment Order at the EU level.

How do I apply in France?

Applying for an EOP in France is simple. The Law for Programming and Justice Reform of March 23, 2019 (« LOI n° 2019-222 du 23 mars 2019 de programmation 2018-2022 et de réforme pour la justice ») covered the applicability and enforceability of the European Order for Payment. It began by establishing a unique jurisdiction with national competences to hear judgements on payment Orders. However, on 19 May 2021, the government presented an amendment to abolish it altogether due to the complexities faced with the ongoing Covid-19 crisis. Some Member States, such as Germany, have set up national courts to increase the the process of applications for EOPs.

In France, the judgement is likely to fall on the president of the Chamber of Commerce. The competent court is that of the defendant’s place of residence and is seized by filing Standard Form A either by post or online application.

The procedure is low-cost as it aims to simplify and democratise the application process for EU citizens. The newly added Article 1425 of the Code of Civil Procedure stipulates that the costs are to be advanced by the applicant and deposited by the clerk’s office at the latest 15 days following the application. The competent court must examine the application as soon as possible, provided that all relevant conditions are met.

How often is this procedure used in France?

While the European order for payment procedure is becoming increasingly popular within France, French lawyers continue to turn towards costlier and more traditional alternatives. In 2018, the number of claims filed under this regulation amounted to 604 in France.

A Practical Guide to Making Good Use of the European Payment Order:

Step 1: Fill out Standard Form A and File for your EOP

Filing for an EOP begins with Standard Form A in which is specified the amount due and its regulatory due date. The form should be sent to the competent court (issues of competences and jurisdiction are determined within Regulation (EC) No 121/2012 and are addressed in more detail below). It is important to state the cause of action as well in your form.

Step 2: Determine the Competent Court in your Case

Following Standard Form A, you will need to identify your Competent Court in order to send your request to the appropriate authority. In order to obtain a favourable judgement for your Order request you must pay special attention to the jurisdictional rules. The competent courts have been chosen by the member states and have been registered with the Commission. You can find a complete listing on the Commission website’s in their simple-to-use online Atlas for determining competences

If you file your application with the wrong Courts national legislatures will take over in defining the appropriate competences.

Step 3: Wait out the Delays while the Court Examines your Application

Once Standard Form A, has been filed the Court evaluates the application’s eligibility – criteria found in Article 7 of the Regulation (EC) No 1896/2006. If your claim is well-founded and un-contested, and your form is properly filed the Courts will rule that your application is admissible. In this case, the Court will issue the requested EPO within a 30-day delay. However, in the event that your application is incomplete or filed with the wrong Courts, the applicant may be brought to file form B requesting additional details or certain key modifications to the application itself.

You will want to remember that in the event your claim is denied by the Courts, there is a duty to inform the application of its reasoning. While the EOP procedure does not provide for the proceedings for a right of appeal, due to its expedited nature, the applicant is however in their right to re-apply a new form or proceed with an alternative measure of debt collection.

Remember to respect the delays dictated to you by the Courts. If these delays are not respected the Courts will reject your application.

Step 4: Have your EOP Properly Enforced

Once you have received a notice from the Courts that your EOP has been issued your debtor has a 30-day delay to contest the claim or accept its payment in full. Lack of reply is taken as tacit acceptance in these cases and the EOP is certified and enforceable through the member states – always with the exception of Denmark.

Getting your EOP enforced requires you to provide to the appropriate authorities a copy of the European Payment Order and if relevant, its translation.

In the event that your debtor does contests the requested claims, the case is sent to the ordinary civil courts and the jurisdiction will be transferred to national courts. Challenged claims are outside of the scope of EU jurisdictions. However, there remains the possibility for an alternative EU measure through the newly established European Small Claims Procedure.

Step 5: Last step… File for a European Enforcement Order

Now that your EOP is enforceable across member states you will need to have it certified by a European Enforcement Order (EEO). An EEO is acquired by filing a standard form, found here to a judge. The judge-issued EEO will then be sent off to the relevant enforcement authorities in charge of your claim (in compliance with the regulation, the enforcement authorities are those of your debtor’s member state) Alongside the EEO there must also be a copy of the original judgment and a translated version of the judge-issued EEO certificate.