Debt Collection Laws in Europe: A Creditor's Legal Map

ECB+8ppLate Payment Dir. 2011/7/EU — automatic B2B statutory interest

€40Fixed recovery cost per invoice — no reminder required

27 statesEU member jurisdictions — all transposed Late Payment Directive

The EU-Wide Framework Governing Debt Collection in Europe

ECB+8ppMandatory B2B interestAutomatic from due date — no demand needed

€40Fixed recovery costPer invoice, no reminder needed

30 daysMax B2B payment terms60d if expressly agreed

Brussels IAuto EU enforcementNo exequatur since January 2015

EAPOPre-judgment freezeCross-border EU bank account preservation

EU collection framework

1

EU Late Payment Directive 2011/7/EU

Statutory default interest: ECB reference rate + 8 percentage points, applied automatically from the day after the contractual due date. Fixed recovery compensation: EUR 40 per invoice for collection costs — no reminder needed. Maximum payment term: 30 days between businesses (60 days where expressly agreed and not grossly unfair). These rights arise automatically — no court order, no demand, no action required. Non-waivable in B2B contracts.

2

EU Payment Order Regulation (EPO) Reg.1896/2006

Available in 26 Member States. File Form A — creditor can file from any Member State court. Debtor has 30 days to oppose. No opposition: order becomes directly enforceable in every participating Member State without exequatur. No cap on claim amount. No requirement to prove the claim in adversarial proceedings. One of the fastest cross-border enforcement tools in the world.

3

Brussels I Recast + EAPO

Brussels I Recast (Reg.1215/2012): automatic recognition and enforcement of judgments across Member States — no declaration of enforceability since 10 January 2015. European Account Preservation Order (EAPO, Reg.655/2014): freeze a debtor’s bank account in another Member State ex parte (before serving the debtor) as a precautionary measure. Powerful pre-judgment tool for cross-border creditors.

The cornerstone instrument is Directive 2011/7/EU: ECB+8pp automatic, EUR 40 per invoice automatic, 30-day terms maximum. A recovery firm that fails to invoke these statutes is leaving your money on the table. Layer national fast-track procedures on top: Mahnverfahren (DE), decreto ingiuntivo (IT), injonction de payer (FR), proceso monitorio (ES).

Limitation periods and national payment orders by jurisdiction

JurisdictionLimitation periodPayment order

Germany — §195 BGB + Mahnverfahren

3 years

From year-end. Mahnverfahren (ZPO §§688-703d): 4–8 weeks uncontested. ERV online filing.

4–8 weeks

Italy — Art.2946 cc + Decreto ingiuntivo

10 years

Decreto ingiuntivo (CPC 633–656): 2–4 weeks. Provisional execution Art.642 immediate.

2–4 weeks

France — Art.L.110-4 C.com + Injonction

5 years

Injonction de payer (CPC 1405–1425): 4–8 weeks. Non-contradictoire.

4–8 weeks

Spain — CC Art.1964 + Proceso monitorio

5 years

Proceso monitorio (LEC 812–818): 20-day response. No cap. Fastest in Iberia.

3–6 weeks

Poland — KC Art.118 + EPU e-court

3 years

EPU Lublin: 1.25% fee (min 30 PLN), 2–6 weeks. 89% non-opposition rate.

2–6 weeks

What are the debt collection laws in Europe?

EU instruments: Directive 2011/7/EU (ECB+8pp + €40 per invoice, automatic), Reg.1896/2006 (EPO), Brussels I Recast (auto enforcement 27 states), EAPO (pre-judgment bank freeze). Limitation: DE 3yr, FR 5yr, IT 10yr, ES 5yr, PL 3yr, UK 6yr (post-Brexit). National payment orders: Mahnverfahren, decreto ingiuntivo, injonction de payer, proceso monitorio.