Cross-border creditors [What Europe does for you]

With European elections coming up in May 2019, you probably want to know how the European Union impacts your daily life, before you think about voting. In the latest in a series of posts on what Europe does for you, your family, your business and your wellbeing, we look at what Europe does for cross-border creditors.

Twitter Hashtag #EUandME

Around 50 % of all consumers shop online, and the number of cross-border transactions in the internal market is growing steadily. However, the individual value of such transactions remains relatively small, with almost half coming under €100. Because the amounts involved are small, not all contracts are properly performed, which sometimes leads to cross-border disputes, most of which do not end up in court. According to estimates, there could be as many as 0.5 million cross-border consumer cases of a value below €2 000 and some 130 000 such cases between businesses per year in the EU. The annual number of consumer claims for amounts between €2 000 and €10 000 is estimated at 84 000, and claims between businesses at 208 700.

To assist cross-border creditors who need to take a debtor in a different country to court over a small sum of money, the EU created the European small claims procedure in 2008. This simple, fast procedure is available only for small monetary claims in cross-border cases. Using ready-available standard forms, in all EU languages, its basic elements are identical throughout the EU.

Reform of the procedure in 2015 means creditors can now make cross-border claims up to €5 000. Court fees were reduced, and digital technology is increasingly used to take evidence, further reducing costs and making the proceeding easier.

Further information

• EPRS publication ‘Reform of the European Small Claims Procedure’, 2015, link1.euhttp://www.europarl.europa.eu/EPRS/EPRS-Briefing-565871-Reform-European-Small-Claims-Procedure-rev-FINAL.pdf
• European e-Justice Portal, https://e-justice.europa.eu/content_small_claims_forms-177-en.do?clang=en

http://www.youtube.com/watch?v=F-fmkaBQwnA