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

The legal framework governing debt collection across Europe operates at two levels: the EU-wide floor established by Directive 2011/7/EU on combating late payment in commercial transactions, and the national-level statutes that implement, supplement, and in some cases exceed that floor. Directive 2011/7/EU entitles every B2B creditor in the EU to ECB base rate plus 8 percentage points in statutory interest automatically from the day after the contractual payment due date — without any demand, without any court order, without any action by the creditor — plus €40 fixed recovery compensation per invoice, also automatic and without demand.

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

These rights are non-waivable in B2B contracts: any contractual clause that purports to exclude or reduce them is void. Germany’s BGB §288(2) goes further, mandating base rate plus 9 percentage points for B2B commercial obligations; France’s Code de commerce L441-10 mandates ECB+10pp. Three EU enforcement instruments layer on top: the European Payment Order (Regulation 1896/2006, all 26 participating states, no claim cap, directly enforceable on no-opposition), Brussels I Recast (Regulation 1215/2012, automatic enforcement of judgments across all 27 member states without exequatur since 10 January 2015), and the EAPO (Regulation 655/2014, pre-judgment bank account preservation order, obtainable ex parte).

A UK-based pharmaceutical equipment supplier has invoices outstanding against debtors in Germany, Italy, France, Spain, and Poland. All are between 60 and 120 days overdue. The finance director’s first question: which law applies and what can be claimed automatically? The answer across all five files is the same starting point: EU Directive 2011/7/EU entitles the supplier to ECB+8pp statutory interest plus €40 per invoice on every EU file from the due date, already accruing, nothing required to activate it. The national fast-track payment orders then determine collection speed: German Mahnverfahren resolves uncontested invoices in 4–8 weeks; Italian decreto ingiuntivo in 2–4 weeks with provisional execution available immediately; French injonction de payer in 4–8 weeks; Spanish proceso monitorio with a 20-day response window; Polish EPU e-court in 2–6 weeks at 1.25% filing fee. A network agency with verified local correspondents in all five markets places all five files simultaneously under one placement mandate.

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 — 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. 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. EAPO (Reg.655/2014): freeze a debtor’s bank account in another Member State ex parte 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.

You know the debt is real. What you need now is someone on the ground in the right jurisdiction who can make it cost the debtor more to ignore it than to pay it. Contact Cosmopolite for a free case assessment. No win, no fee.