The vast majority of proceedings were initiated by companies, and individuals only rarely attempted to recover their claim by means of a payment order. Few people still know that in the event of an overdue debt or damage, the order for payment procedure is the simplest and fastest way to recover a money claim without litigation. Last year, only 5.5 percent of the cases were litigated, with an average of seven cases out of ten, totaling 401,000 cases.
The vast majority of 527,698 requests for payment issued last year were made by debt managers, public service companies – public transport, utilities, and mobile operators – initiated. In addition, there were many credit card debt, parking fines, and payment orders for copyright protection. 96 percent of the proceedings were initiated due to debts of between HUF 10,000 and one million, but in more than a thousand cases applications were also made to claim over HUF 10 million, the latter typically in corporate cases.
The vast majority of the proceedings – 521,000 applications – were submitted electronically, and the number of requests made orally or on paper was negligible. On paper and orally, individuals can apply for a payment order and condominiums that are not jointly represented by an individual entrepreneur or a legal entity. Low percentage of oral and paper applications (1.2%) it shows that there are still few individuals initiating the procedure – said Ádám Tóth. The president of MOKK emphasized that many are still losing their legitimate cash claims due to lack of knowledge and fear of protracted litigation. However, individuals under the $ 30 million limit they may initiate the issuance of a payment order at any notary, And under $ 3, is the easiest way to claim money without litigation.
Typically, this is the case if the tenant fails to pay the rent, fails to repay a private rent or has a claim against someone due to damages. However, a payment order procedure can also be initiated if an online store fails to refund the purchase price of the returned product, the airline forgets to reimburse the baggage damage, or the employer does not pay the employee's wages, overtime, or severance pay.
Contrary to myths, to initiate a payment order procedure there is no need to attach any unpaid invoices, contracts or other evidence – only apply to the notary for the issue of a payment order. The procedure is simple and quick. If the application is received electronically, the notary must decide on the payment order within 3 working days and, in the case of oral or paper applications, within 15 days. Even if your debtor is not domiciled in Hungary, it is not worth losing your debt, in which case your debtor can enforce your claim in the European order for payment procedure.
Also in favor of the procedure is that 90.5 percent of payment orders issued last year became legal within a few weeks, that is, they ended successfully. Either because the debtor has acknowledged his debt or because he has not contradicted it, which is also sufficient to make the payment order final on the sixteenth day following its receipt.
Anyone who does not pay afterwards can be sued. In 2019, 401 thousand such requests were made, ie On average, seven out of ten cases were eventually enforced against debtors. This is because receiving a payment order increases your willingness to pay, meaning that many debtors do not wait until they are in the enforcement phase but settle their debts. If the debtor disputes the debt, he or she may file a contradiction to the order for payment, which results in the proceedings becoming litigation and continuing in court.
2019 only 5.5 percent of payment orders, or 29,000, were litigatedbecause the debtors did not fully or partially acknowledge their debt.
Businesses and other legal entities, such as foundations, associations, or sole proprietors, can only object if they receive a payment order, “said Ádám Tóth. If they do not do so, their submissions will be automatically rejected and may even slip out of the available 15-day time limit and be subject to enforcement proceedings.