Debt Recovery and Small Claims in Europe

Many business, particularly when using traders, deal with other businesses or consumers outside the UK.  As of January last year, a new system has been developed for individuals and businesses to deal with small claims in other European Member States in an effective way.

The system is used for recovering claims of up to € 2,000 (which does not include interest, expenses and disbursements). There is a strict time limit to adhere to if you wish to make a claim. However the system does allows for the procedure (generally) to be dealt with in writing, which can save on the costs of having to appear at Court in person.

Unlike in the UK (in which small claims can be made up to the value of £5,000.00 and for which legal costs are not recoverable), the unsuccessful party to a claim made in the participating Member States bears the costs of those proceedings. That is, provided those costs were not unnecessarily incurred or are not disproportionate to the claim.

The process is estimated to take 118 days from issuing the claim until the date of judgement. It is a relatively fast process which simplifies and speeds up lower value cross-border litigation.

For more information please contact Rebecca Pitt at rpitt@mayowynnebaxter.co.uk