Brexit and Its Potential Effect on European Debt Collection
The UK’s scheduled exit from Europe at the end of March will affect many things not least being the European debt collection agency industry. Depending on what decisions are made, we may be about to experience some upheaval as the laws governing outcoming and incoming judgement enforcement will need to be reviewed and amended.
Many of the UK’s Business debt collection agencies operate across Europe’s international borders, which means that EU jurisdictions are frequently the topic of discussion when cases arise. It might seem like a lost cause when considering trying to recover monies from a debtor who’s moved to another country, but as things stand, with sufficient knowledge and a touch of persistence, there’s more than an average chance of success. And all without wasting too much time and money in the process.
The key phrase here is ‘as things stand’, as the UK’s decision threatens to have a profound effect on how judgements made against debtors outside Britain are enforced.
What can we expect?
The exact details of the UK’s extrication from the European Union are as uncertain now as they’ve ever been, but there will be an inevitable conclusion to proceedings, some time in the not-too-distant future. We can only guess at this point in time what that will look like, but one thing is for sure, there is potential for major change in judgements and how they’re enforced
The likelihood is that the lack of any agreement in place will drive up both the cost and time involved in international debt collection, in the short term at least. The UK is in the unenviable position of having to rely on the EU’s willingness to cooperate in creating new or ratifying existing arrangements and that is by no means a foregone conclusion.
A Complex Arrangement
There are many that wonder what it is that takes the time it does to create international laws, but when you consider the complex nature of how the EU is organised, there’s a lot that needs to be amended. There’s the European Enforcement Order that’s concerned with enforcement of court judgements, the Brussels Regulation that deals with non-money judgements and the Legano Convention which only concerns judgements between Norway, Iceland and Switzerland.
Needless to say, there’s a lot to work out, but with everything being finite in nature, it will be resolved sooner or later and then we can all get on with our lives. We just have to stay patient and confident that potential future issues can be overcome.
Regrettably, Brexit has been the subject of much conjecture over the past couple of years since the referendum about how it will affect European B2B Trade and the intricacies therein. There are so many ‘so called’ experts who spout incorrect fabrications and myths about International Debt Collection so it is wise to seek counsel with a respected company that is not there to try and profit from uncertainty.
The good news is that debt collection within the UK is not expected to experience too much disruption as a result of Brexit. And when you add that to the fact that international debt collection laws will be resolved soon, professional debt collection agencies are still going to be the only savvy choice for any business looking for a cost-effective, time-efficient and professional method of recovering owed money.
That at least looks set to be the case for the foreseeable future.
If your company is seeking a Professional solution for European Debt Collection then please feel free to speak to our friendly New Business Team for great help and advice.