WRITTEN QUESTION No. 4082/97 by Gerhard HAGER to the Commission. Enforcement of payment demands by debt- collection agencies
Date: 1998-01-16
Institutions: European Parliament, HAGER
Subjects: Austria, administrative procedure, claim, consumer protection, legal profession, payment, proposal (EU), restriction on competition













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91997E4082

WRITTEN QUESTION No. 4082/97 by Gerhard HAGER to the Commission. Enforcement of payment demands by debt- collection agencies  


Official Journal C 386 , 11/12/1998 P. 0001 





WRITTEN QUESTION E-4082/97by Gerhard Hager (NI) to the Commission(16 January 1998)Subject: Enforcement of payment demands by debt-collection agenciesAccording to the report on default in payments on commercial transactions, the Commission intends to draw up a legislative proposal, one provision of which will be to authorize debt-collection agencies to serve orders throughout the Community for the recovery of payment because the circumstance that in many Member States representation before the courts is reserved to the legal profession can be seen as an obstacle to the prompt and low-cost enforcement of claims.The Austrian Chamber of Legal Practitioners however takes the view that the proposed directive will entail:- reduced protection for creditors and debtors;- deterioration in consumer safeguards;- a one-sided, materially unjustified distortion of competition to the advantage of debt-collection agencies.1. Does the Commission consider that in submitting this proposal it is acting in accordance with the subsidiarity principle and complying with the principles of necessity and proportionality?2. Does the Commission consider that there is a need for this measure in Austria, where the legal situation is that electronic debt-recovery proceedings can be invoked to secure accelerated processing of demands for amounts up to ATS 100 000, and where it is precisely because a lawyer is involved in the execution procedure that a claim to title is a sufficient ground for the proceedings?3. That being so, does the Commission consider the distortion of competition to the advantage of debt-collecting agencies as justified?Answer given by Mr Papoutsis on behalf of the Commission(23 February 1998)1. The Commission is currently considering the content of a legislative proposal in the field of late payment. It will of course respect the principle of subsidiarity as defined in Article 3 (b) of the EC Treaty and comply with the principles of necessity and proportionality.2. The Commission takes note of the opinion of the Austrian chamber of legal practitioners, cited by the Honourable Member, according to which the legal situation in Austria works well for enterprises. However, the Commission also noted a recent survey(1) which showed that 60 % of Austrian businesses think that the current legal system for collecting debts is ineffective, 55 % think that it is too slow, and 48 % think that it costs too much. Furthermore, 82 % of Austrian businesses think that the legal procedures should be streamlined.3. The Commission initiative will certainly not distort competition in any way. On the contrary, the Commission's communication of 17 July 1997(2) identified a number of obstacles preventing debt collection agencies from operating on a Community-wide basis. The objective of the Commission's initiative is therefore to create a level playing field and a properly functioning single market for businesses collecting debts.(1) European Payment Habits Survey, Intrum Justitia, Amsterdam, April 1997.(2) OJ C 216, 17.7.1997.