Legal Collections in Poland | Debt Collections Fees in Poland
1. Amicable stage
There aren’t any formalities for the dispatch of a reminder to the debtor.
Fees and the costs of are based on the deal together with the appointed lawyer, if one is instructed at this period.
Before enforcement proceedings, it’s impossible to obtain financial advice regarding physical men, but during enforcement proceedings, this information may be found. It is always possible to get info regarding companies.
At this period any guarantee may be granted only with the debtor’s authorization.
In case of late payments, the statutory speed of interests is 13% annually as of the day of prepa- ration of this study, i.e. March 2011 and there are additionally conventional interests which as of today cannot exceed 27% per annum.
2. Legal stage
It’s obligatory before commencing legal action in court, to deliver a call for payment to the debtor. There is a different procedure for cases in which both parties of the dispute are entrepreneurs (companies or natural persons conducting business activity). These types of cases are reviewed by a unique chamber in court, i.e. business court. The creditor could also use the “payment order procedure” if he disposes of documents where the debtor admitted the debts. In case the creditor disposes of the documents supporting the debt, he can start a “writ proceeding” and if so, the debtor’s acknowledgement isn’t necessary.
Regulation (EC) 1896 (2006) creating a European order for payment procedure and regulation (EC) 861/2007 establishing a European Small Claims Process are well known and well used in Poland.
Unless a certain provision provides otherwise, the prescription period is 10 years, and 3 years for claims concerning those and periodical performances associated with conducting company activities. Moreover, the Polish Civil Code defines the specific details of the debt prescription depen- ding on the type of the contract. The prescription intervals are unable to be shortened or expanded by a legal act subject to the debtor’s permission to meet the creditor’s claim.
The judicial prices to be paid to the court in the summary procedure is determined by the worth of the issue of the litigation. In the event the claimant wins a case the costs shall be returned by the defendant. In case the debtor brings objections to the order for payment, court fees shall be paid by him at 3,75% of the claim worth. However the order of payment becomes final and enforceable, the court shall return 3,75% of the court fee and the remaining part of this fee shall be returned by the defendant.
Injunctions and seizures are potential in order to defend the creditors’ rights as much as really possible.
In Poland, records in a foreign language need to be translated by a sworn translator.
Attorney fees can partly be recovered as the court orders reimbursement of legal fees at mini- mum rate, which largely doesn’t completely cover the remuneration agreed with the attorney. Court fees are not completely unrecoverable. Interests are recoverable at the statutory rate.
There are not any fees for the late payment except for normal and statutory interests.
Within enforcement proceedings, the enforcement is obligatory is the enforcement power.
Debt collection offices shall employ a person that has entered into a long-lasting compulsory relationship with the lender provided the range of this mandate includes the subject matter of the case, to represent its client, legal advisors or lawyers. The same applies to credit insurance companies.
3. Enforcement of a foreign judgement
A European enforcement order issued in the Republic of Poland which became final and valid because of the deficiency of defendant’s objection shall be construed as an execution title. The execution title will likely be enforceable in the event the court will be provided by it with the enforcement clause.
Enforcement matters belong to competence of districts courts and bailiffs acting therefore. Bailiffs conduct enforcement measures with the exclusion of those allowed for courts by binding provisions of law. In the event of the financial performances the bailiff is alone entitled to carry out.
According to the Polish law there isn’t any obligation to pay any court fee for the statement of enforceability of a European order for payment’s provision with the enforcement clause and it.
Enforcement fees collect for carrying out the enforcement and takes the advance payments for the enforcement. In issues with reference to financial performances proportional fees are collected by the bailiffs depending in the value of the performance that is enforced. The bailiff collects fees at a rate of 15% of the value of the functionality enforced, nevertheless not less than 1/10 and not more than thirtyfold value of the typical monthly remuneration with the exceptions stipulated in the provisions of law.