Glossary of debt collection terms
Industry jargon can be tricky, and we want to make it easier for you to understand. We have prepared a glossary of terms related to the debt collection industry, explaining the terminology you might encounter in our letters, emails, and texts. If anything is unclear, please get in touch with us.
We use plain language to help you get through this more easily
At EOS Poland, we know that dealing with debt can be stressful and raise many questions. That’s why we communicate with you in simple, plain language — helping you feel more in control and less stressed about your situation. Our aim is to make every piece of information easy to understand and make every next step easier for you. That's why we work with consultants who specialize in plain language and trained our own experts.
We're deeply committed to communicating in simple, plain language, avoiding complicated words and difficult letters. This helps you understand your options well and find the right solution.
Definitions
The current creditor is the entity that currently owns your debt. It acquired the rights to it under a debt sale (assignment) agreement from the previous creditor – that is, the entity with which your debt originally arose (e.g. a bank or telecoms company). It is to this entity’s account that you must repay the debt.
In cases managed by EOS Poland, the current creditor may be our company or one of the funds – a so-called Non-Standardised Closed-End Debt Investment Fund (NFIZW for short). In notifications from EOS Poland, you will therefore come across the company EOS Investment Poland GmbH or the funds EOS1 NFIZW, CRF1 NFIZ, VPF I NFIZ.
→ EOS Poland acts as the agent for your current creditor and represents them in their dealings with you.
Credit Information Bureaus – BIGs – are commonly referred to as ‘debtor’ registers’. Their activities involve collecting, storing and providing access to various information about debtors, including details of their outstanding liabilities. Economic Information Bureaus receive data not only from the banking sector, but also from telecommunications companies, utility providers, local authorities and even private individuals.
In Poland, you may come across:
→ EOS Poland, as the representative of the current creditor, has the right to pass on information about your debt to the BIGs.
A Bank Enforcement Order (BTE) is a document which, until 2016, allowed banks to recover debts through a simplified and accelerated process. Therefore, if you took out a bank loan or credit and were unable to repay it, the institution could issue a BTE to initiate debt enforcement proceedings – without taking the matter to court.
Assignment of claims is an agreement under which the rights to your debt are transferred from one creditor to another. Most often, it is a bank or another entity to which you owe money that sells the claim to a fund. Under the agreement, the fund becomes your current creditor.
You will then receive a notice of the change in ownership of your debt, known as a notice of assignment of debt.
→ We send you this letter – letter of assignment – as the representative of your current creditor.
EOS Online is a portal where you can manage your own affairs with EOS Poland. It is available at https:eos-online.pl
Once you have created an account on the portal, you can check the status of your case at any time, update your details, repay your debt, select an offer and set a repayment schedule, and reach a settlement.
Debt collection involves actions carried out by EOS Poland on behalf of the current creditor. Our aim is to reach an amicable settlement for the repayment of your debt.
As part of our activities, EOS Poland may, for example, contact you by telephone, send you letters, text messages and emails, and conduct direct negotiations with you regarding the repayment of the debt.
Under Polish civil law, you may inherit assets following the death of a loved one. These may include not only rights but also the deceased’s outstanding liabilities. EOS Poland may therefore contact you – as the heir of the deceased debtor – on behalf of the current creditor.
Enforcement, or enforcement proceedings, refers to actions carried out by a bailiff on the basis of a court order. To ensure the debt is repaid, the bailiff has the right, under the enforcement order issued, to seize your assets, such as your wages, bank account or property. Enforcement is initiated by the creditor by submitting an application to the bailiff to commence enforcement proceedings.
→ Enforcement proceedings are conducted by a bailiff on the basis of an enforcement order issued by a court.
Electronic Summary Proceedings, or EPU, is a fast and simplified procedure in the e-court that does not require a hearing. The order for payment and the enforcement clause are issued electronically. If the case relating to your debt is not complicated, it may be referred to the e-court.
The first stage of debt recovery is the so-called amicable stage. We contact you to remind you of your arrears, reach a settlement and agree on repayment terms. We are keen to resolve your case amicably, without involving other institutions. This is the best solution – beneficial to both parties.
→ During the amicable stage, we do not involve the court in the debt matter.
The legal proceedings stage is the second stage of debt recovery if our amicable efforts prove unsuccessful. As the representative of the current creditor, EOS Poland may recommend referring the case to court to obtain a payment order.
The debt case is referred to the Electronic Reminder Proceedings (EPU) – the e-court – or to a court of general jurisdiction. During the legal proceedings stage, you can still reach a settlement with the current creditor.
→ During the legal services stage, the debt case is referred to the EPU or a court of general jurisdiction.
The enforcement stage begins once an enforcement order has been obtained through court proceedings. At this point, the debt case is usually referred to a bailiff.
As part of the enforcement proceedings, the bailiff may seize, for example, the debtor’s wages, bank account or property. Remember that even at this stage of the proceedings, you can reach a settlement with the current creditor.
→ During the enforcement stage, the bailiff may, for example, seize your wages or property.
A fund is an entity that purchases debts, for example, from banks, but also from telecommunications, credit or loan companies. We are referring to a specific type of fund – namely the Non-Standardised Closed-End Debt Investment Fund, abbreviated to NFIZW.
The fund becomes the current creditor of your debt, and it commissions EOS Poland – a debt collection agency – to handle your case. That is why you may come across the following funds in notifications from EOS Poland: EOS1 NFIZW, CRF1 NFIZW, VPF I NFIZW.
The debt exchange is a portal where creditors list offers to sell the debts owed to them. Similar to credit reference agencies, it is a place where you can check whether a particular person or company has any outstanding debts.
→ EOS Poland — acting as the agent of the current creditor — may list an offer to sell your debt on the exchange.
This is a plan for repaying the debt in instalments, agreed between you and the current creditor. It may be agreed verbally or in writing, as well as on the portal EOS Online, as part of a settlement.
A compulsory mortgage is a security for the repayment of debt by encumbering the property. It is entered in the land register on the basis of a final court ruling. It does not require your consent.
An inspector or field advisor is an EOS Poland employee who may visit you at your place of residence if we have been unable to contact you by other means. During the visit, they will discuss the debt and arrange for its repayment.
→ The inspector/advisor always carries a visible ID badge.
This is a document issued by the court either ex officio or at the creditor’s request. It confirms that the enforcement order (payment order or judgment) becomes an enforceable title, on the basis of which enforcement proceedings may be initiated.
A bailiff is a public official who works at a court and runs their own bailiff’s office. Their main task is to carry out enforcement activities to secure repayment of the debt established by the enforcement order. A bailiff acts at the request of the current creditor and on the basis of a court ruling.
These are the costs arising from conducting:
Legal costs consist of: court fees, stamp duty, solicitor’s fees and bailiff’s fees.
The principal debt is the basic amount of your debt – excluding interest and costs – equivalent, for example, to the amount of an unpaid loan or invoice. In cases at the court stage, the principal debt comprises the basic amount of the debt and capitalised interest.
→ The principal debt may, for example, be the equivalent of the outstanding amount of a loan or invoice.
This is a court ruling confirming that your debt exists and must be repaid to the creditor. Once it becomes final, the order for payment/judgment becomes an enforcement order, and once an enforcement clause is added, it becomes an enforcement title.
Insolvency occurs when you are unable to meet your financial obligations due to a prolonged loss of financial liquidity.
The case number is a unique, 8-digit number assigned to your debt by EOS Poland. You will find it in all communications sent by us. It forms part of the bank account number we assign to your case (this is the account to which you repay your debt).
You will need the case number when making a payment on the online payment page and when registering an account on the EOS Online portal.
Interest is an additional charge calculated for each day of delay in repaying the debt. For individuals not engaged in business activity, so-called statutory interest for late payment is charged, whilst for businesses – statutory interest for late payment in commercial transactions.
This is an authorisation granted by the current creditor to EOS Poland as a debt collection agency. On this basis, we can take steps to ensure your debt is repaid. This means we have the right to contact you, even though we have not previously entered into any agreement with you.
This is a party who has guaranteed the repayment of the debt on behalf of the principal debtor. Together with the principal debtor, they are liable for the repayment of the debt.
→ If you are a guarantor, this means that you have undertaken to the creditor to repay the person’s debt should they fail to do so themselves.
A natural person, a legal person or an entity with whom you originally incurred your debt. This could be, for example, a bank to which you have not repaid a loan, or a telecommunications company to which you owe an outstanding invoice.
A previous creditor is an institution or company that has sold the debt to another entity. For example, if you failed to repay a loan according to the repayment schedule, the bank may have sold your debt to a fund. From that point on, the fund is your current creditor. The financial institution/bank has become the previous creditor.
When amicable attempts to agree repayment terms with you prove unsuccessful, the creditor may initiate legal proceedings. This begins with filing a claim in court to obtain an enforcement order – that is, confirmation of the debt’s existence – and the authority to commence enforcement proceedings.
→ Court proceedings may be conducted via the EPU (e-court) or before a court of general jurisdiction.
Probate proceedings are actions aimed, amongst other things, at formally confirming the heirs’ rights to the estate of a deceased debtor.
This is a quick and secure online form available at https://platnosci.eos-online.pl/.
You can use it to easily settle your debt using payment methods such as BLIK or a quick transfer. It will only take a few moments. Simply enter your case number assigned by EOS Poland and provide the last 3 digits of your Social Security Number (PESEL).
Put simply, this is the ‘expiry date’ of the debt as defined by law. Once this period has elapsed, the debt becomes time-barred and the creditor loses the right to take the matter to court.
→ The limitation period does not mean that your debt ceases to exist.
GDPR is the colloquial name for the General Data Protection Regulation. It sets out the rules for the protection of personal data across the European Union. The aim of the regulation is to ensure that every individual has control over how their personal data is processed.
The provisions of the GDPR guarantee that the debt recovery process is carried out with respect for privacy, and that your personal data is used only to the extent that is necessary and legally permissible.
This is a breakdown of your total debt into individual amounts. In the debt details, you can see which components make up the total amount owed that the creditor is demanding repayment of. In the letters sent to you by EOS Poland, these amounts are stated as at the date the letter was generated.
A trustee is a person who conducts bankruptcy proceedings. They are appointed by the court and, under its supervision, act in the interests of all the debtor’s creditors. The trustee’s task is to take charge of all the debtor’s assets,
The scope of the trustee’s activities is set out in the provisions of bankruptcy law.
This is a payment order or a court judgment resulting from legal proceedings. It is an enforcement order bearing an enforcement clause. It forms the basis for a bailiff to initiate and conduct enforcement proceedings.
A settlement is a written agreement between you and the current creditor. It sets out the agreed terms for repaying the debt. It is the result of negotiations with a positive outcome for both parties. You can reach a settlement at any stage of the debt recovery process. Simply contact us or log in to your account on the EOS Online portal.
Debt remission is the partial or total release of the debtor from the obligation to repay the debt. In practice, this means that, with the creditor’s consent, a specified portion or the entirety of the debt is not pursued by the creditor. The terms of debt remission are set out in the settlement agreement.
→ A condition for the discharge of part of the debt may be, for example, compliance with the terms of the settlement.
Discontinuation of enforcement involves the termination of the enforcement proceedings conducted by the bailiff in relation to the debt. If this occurs due to the ineffectiveness of the proceedings, it does not mean that the debt ceases to exist – the current creditor will have the right to reapply for the initiation of enforcement proceedings.
Bankruptcy proceedings are a court procedure initiated when a debtor is no longer able to meet their financial obligations. In practice, their assets are seized and inventoried, after which their estimated value is determined and they are sold off. The proceeds are distributed amongst all creditors.
Consumer bankruptcy applies to a natural person who does not run a business and is unable to repay their debt. The aim of declaring consumer bankruptcy is to clear debt and provide a chance for a ‘fresh start’ free from the burden of existing liabilities.
A promissory note is a security that serves as a guarantee to the creditor that you will repay your debt. It is a written undertaking to settle the debt. It is linked to a credit or leasing agreement.
A demand for payment is a letter you may receive from us together with a letter of assignment. Not only will we inform you of the need to repay the debt – it is also an attempt to resolve the matter amicably, without the need to initiate legal proceedings.
A creditor is an entity which, under the law, may demand repayment of the debt from the debtor. It is to their account that any payments relating to the debt should be made. In your cases handled by EOS Poland, the creditor may be, for example, one of the funds.
The creditor:
A claim is the right of a creditor to demand repayment of a debt from the debtor. A claim is an asset. Like other assets, it can be sold to another party under a debt assignment agreement.
These are actions carried out in accordance with the law. They are intended to result in the debtor repaying the debt to the current creditor. A distinction can be made between amicable debt collection and judicial debt collection.
Amicable debt collection is the first stage of the process. When we begin this process, we aim to reach an agreement with you regarding the voluntary repayment of the debt, without the need to take the matter to court. Our approach to repayment options is based on open communication, dialogue and partnership-based negotiations.
Legal debt recovery begins if we have been unable to reach an agreement with you regarding the amicable settlement of the debt. We will then refer the matter to the court to obtain a legally binding order for payment or a judgment. At this stage, we can still reach a settlement.
This means that the court case concerning debt repayment is heard by the court of first instance in whose district the debtor resides or has their registered office.
A debtor is a term used to describe an entity that has outstanding financial obligations. If you are a debtor, this means that the current creditor may, under the law, seek repayment of their claim from you.
Debtors may include:
which have failed to meet their obligations towards the creditor.
Bailiff’s seizure is a key procedure in enforcement proceedings. On the basis of an enforcement order issued by the court, a bailiff may take control of a specific part of a debtor’s assets , e.g. wages, funds held in a bank account, property, vehicles or household appliances. Once the property has been seized, the debtor loses the ability to freely use the seized assets.
→ The purpose of bailiff seizure is to ensure that your debt is repaid to the creditor.
Debt management involves a debt collection agency carrying out comprehensive measures designed to secure repayment of the debt to the current creditor.
→ EOS Poland manages the receivables of funds on the basis of powers of attorney received from them.
A registered pledge is a security for the repayment of your debt by encumbering movable property or transferable property rights with a pledge. Pledges are entered in the register of pledges, maintained by the court. The subject of the pledge may be, for example, your car.
This is a temporary suspension by the bailiff of enforcement proceedings relating to the debt. It neither terminates nor cancels the obligation to the creditor.
Enforcement may be suspended, for example, at the request of the creditor or the debtor. During the suspension, the bailiff does not take any new action.
A notice of assignment of debt is a letter informing you that the rights to your debt have been transferred from the previous creditor to the current one. From the moment you receive this document, repayments should be made to the current creditor’s account.
