In this section we explain the meaning of terms related to the debt collection industry that we often use in our communications - letters, e-mails, text messages. We know that many of them are difficult to understand. Therefore, we have made every effort to make them easier to understand. If something is still unclear - contact us, we will be happy to explain.
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
Entities that collect, store and provide data on the timeliness of payment of obligations by payers. Information is provided to BIGs by entities, including creditors, who have entered into an appropriate agreement with the bureau. In Poland, the following entities are active: BIG InfoMonitor S.A., Krajowe Biuro Informacji Gospodarczej S.A., Krajowy Rejestr Długów Biuro Informacji Gospodarczej S.A., ERIF Biuro Informacji Gospodarczej S.A..
The legal basis for the operation of BIGs is the Act of April 9, 2010 on sharing business information and exchanging business data
A transaction in which one creditor (the transferor) transfers the rights to a claim they are entitled to another party (the transferee), who, upon acquisition, becomes the current creditor. The effective transfer of the claim rights is carried out based on an assignment agreement/sale of claims agreement, concluded between the assignor—the previous creditor—and the assignee—the current creditor. The debtor is informed about the assignment of the claim through a notification of the transfer of claim rights. The legal basis for changing the creditor is the Civil Code (Art. 509 et seq.).
Activities carried out on behalf of and for the benefit of a creditor by a debt collection agency or law firm, aimed at ensuring the debtor settles the obligation either amicably or through legal proceedings.
EPU, known as the e-court, is a separate procedure regulated by the Code of Civil Procedure, allowing creditors to pursue claims in cases concerning the payment of debts where the factual situation is not complicated and does not require evidence proceedings. The payment order and enforcement clause issued in the EPU are exclusively in electronic form and are accessible in the e-court's ICT system upon entering the unique order code or EPU case number.
Pursuing debt settlement through amicable means. (See "Amicable Debt Collection")
Pursuing creditor claims through legal proceedings. (See "Legal Proceedings")
Pursuing creditor claims based on a final court ruling (enforcement title) in enforcement proceedings. (See "Enforcement Proceedings")
A company specializing in recovering unpaid debts on behalf of a creditor through granted power of attorney. It can act on behalf of and for the benefit of the creditor, servicing entities struggling with unpaid receivables. Debt collection companies in Poland operate based on the Act on the Freedom of Economic Activity and must be registered in the National Court Register's business registry. EOS Poland Sp. z o.o. is a debt collection company specializing in international receivables management: debt collection on commission, purchase of receivables, and business process outsourcing.
An investment fund that purchases due or undue receivables from other entities such as banks, telecommunications companies, energy companies, credit or loan companies, etc. Based on an assignment agreement, it becomes the current creditor, which grants a power of attorney to a debt collection company to pursue its claims directly from debtors. EOS Poland Sp. z o.o. acts on behalf of the following funds: Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, EOS 1 Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, VPF 1 Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, Aneto Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, CRF 1 Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności.
An online platform that connects creditors looking to sell their receivables with entities interested in purchasing them. The possibility for creditors to dispose of debt on a receivables exchange is provided by the Civil Code regulations.
An agreed installment payment plan between the debtor and the creditor. It can take the form of verbal arrangements or an agreement that does not require a written form. It is concluded between the debtor and the creditor or a debt collection company acting on behalf of and for the benefit of the creditor.
A security interest in a debtor's real estate that does not require the property owner's consent. A compulsory mortgage is entered into the land register by a court decision based on the creditor's application and an attached enforcement title. The legal basis for establishing a compulsory mortgage is the Act of July 6, 1982, on Land and Mortgage Registers and Mortgages.
A field employee of a debt collection company who conducts negotiations with the debtor to arrange debt repayment.
An official court document issued at the creditor's request, certifying that an enforcement order becomes an enforceable title authorizing execution.
A public officer whose main task is to execute court rulings and other enforcement titles through coercive execution. In Poland, they hold office working with the district court; however, they are not employees of the courts or the prosecutor's office but operate their own bailiff's office on a self-employed basis.
Court costs that may be awarded against the debtor in favor of the creditor if the claim is pursued in legal proceedings. Such costs include: court fees, stamp duty for the power of attorney, costs of legal representation, and costs and advances for expenses in enforcement proceedings. The legal basis is the Code of Civil Procedure and the Act of July 28, 2005, on Court Costs in Civil Cases.
A public register that presents the legal status of real estate. Each established land register contains an identical set of information about the property it pertains to. The legal basis is the Act of July 6, 1982, on Land and Mortgage Registers and Mortgages.
The amount that the debtor owes to the current creditor, without any additional costs. This can be the unpaid amount of a loan taken out, an unpaid invoice for telecommunications services or electricity, etc. In cases at the court stage, the principal amount includes both receivables from invoices and contracts (the unpaid portion of the loan) as well as capitalized interest.
A ruling issued by the court obligating the debtor to pay the amounts awarded by the court to the creditor. Once it becomes final, the payment order becomes an enforcement title, and after the enforcement clause is granted, it becomes an enforceable title authorizing the creditor to submit an enforcement application.
A permanent loss of financial liquidity in which the debtor's assets are insufficient to meet all their obligations to creditors.
A unique 8-digit number assigned to each receivable managed by EOS Poland Sp. z o.o. on behalf of the current creditor. It is part of the individual bank account number designated for the repayment of a specific receivable. It is provided in every correspondence sent to debtors, their heirs, and to trustees.
The possibility of repaying the debt with a delay, with the consent granted to the debtor by the creditor.
A formal power of attorney granted by the current creditor to a debt collection company, such as EOS Poland Sp. z o.o. Under this power of attorney, the debt collection company has the right to:
- conduct activities aimed at contacting the debtor, send correspondence, engage in discussions regarding debt repayment, etc.,
- enter into any agreements and settlements concerning the debt on behalf of and for the benefit of the creditor,
- accept payments from debtors.
The most common form of compensation for delay in fulfilling monetary obligations. In the case of individuals not conducting business activities, statutory interest for delay is calculated (Art. 481 of the Civil Code). For entrepreneurs, statutory interest for delay in commercial transactions is applicable (according to the Act of March 8, 2013, on Counteracting Excessive Delays in Commercial Transactions, Journal of Laws 2023.711, as of April 14, 2023).
An individual or an individual conducting business activities who is in arrears with the payment of their debt to the current creditor. (See "Debtor")
A guarantor is a third party who is liable as a joint debtor along with the primary debtor.
One of the forms of securing a loan or securing an obligation from a promissory note. The guarantor commits to the creditor to repay the debt in the event that the debtor fails to fulfill this obligation. The legal basis is the Civil Code and the Bill of Exchange Law.
It is initiated by the creditor by submitting an enforcement application to the court bailiff. Its purpose is to recover, through coercive measures, amounts from the debtor's assets that arise from the enforcement title.
After the unsuccessful conclusion of amicable actions, the creditor has the right to pursue claims in legal proceedings to obtain an enforcement title. The creditor can file a lawsuit within the EPU (e-court) or before the court of general jurisdiction. (See "General Jurisdiction of the Court").
It begins at the request of the debtor or their creditor in the event of the debtor's insolvency being established. After a positive review of the application, the debtor's bankruptcy is declared. (See "Consumer Bankruptcy").
A list of financial components that constitute the total principal amount of the debt (the principal amount without interest and costs). The specific component of the principal amount most often corresponds to the value of an unpaid invoice, for example, for telecommunications services or a contract that the debtor has not fulfilled. In cases at the court stage, the principal amount includes both receivables from invoices and contracts (the unpaid portion of the loan) as well as capitalized interest. In the correspondence sent by EOS Poland Sp. z o.o., it typically takes the form of a table listing the document number, date of issue, due date, and current value.
It is a function, not a profession, involving the management of the bankrupt's assets and the distribution of funds among creditors in accordance with the principles of bankruptcy law.
The details of the debt refer to the so-called list of financial components constituting the total value of the debt – these include the principal amount, interest, costs of the original creditor, and legal service costs. In the correspondence sent by EOS Poland Sp. z o.o., their value is provided as of the date the document is generated, presented in a tabular format.
An enforcement title furnished with an enforcement clause entitles the creditor to initiate enforcement proceedings.
An agreement concluded between the debtor and the creditor, by virtue of which both parties make mutual concessions regarding debt repayment. The creditor may, for example, write off part of the debt, arrange payment in installments, etc. For the settlement to be valid, the signatures of the parties are required, or the debtor's payment in accordance with its provisions
Creditor's consent to waive part of the debt or to waive the repayment of the remaining part of the obligation, if the debtor has already repaid the larger part of it. It is the result of a written agreement between the debtor and the creditor in the form of a settlement. A condition for the write-off may be the debtor's fulfillment of the terms of the settlement.
Bankruptcy proceedings concerning a natural person who does not conduct business activity – they are a consumer unable to repay their debt. The conditions for accepting a consumer bankruptcy application are strictly regulated by law. After the proceedings are concluded and all formal requirements are met, the debtor may be discharged from debt repayment.
A situation in which the debtor acknowledges their obligation to the creditor as existing.
A security (or negotiable instrument) issued according to the rules defined by bill of exchange law. It constitutes security for the creditor's claims arising from credit agreements, leasing, or other contractual relationships (or obligations).
An official letter that a creditor or a debt collection company acting on behalf of the creditor sends to the debtor. It is an attempt to settle the matter amicably, without the need for the creditor to initiate judicial proceedings. EOS Poland Sp. z o. o. sends demands for payment on behalf of creditors, by virtue of granted powers of attorney.
A party to an obligation who can demand the fulfillment of a monetary or in-kind performance from the debtor, under the provisions of the Civil Code. The obligation from the debtor's perspective is defined as a debt (indebtedness), and from the creditor's perspective as a receivable (claim).
The concept of the original and secondary creditor appears at the moment of assignment of receivables, i.e., the sale of receivables to a third party. The party selling (assignor) the receivable is the original creditor, and the buying party is the secondary creditor (assignee).
The previous creditor is the last assignor of the claim in the assignment process, from whom the current creditor acquires the claim.
A legally existing claim of the creditor against the debtor, concerning payments which the debtor is obliged to pay.
The pursuit of fulfilling obligations using means provided by law. It is also referred to as the pursuit of claims or receivables. Depending on the debt collection tools used, amicable or judicial debt collection is distinguished.
Debt collection activities in which the creditor attempts to achieve voluntary repayment of the obligation by the debtor.
Judicial proceedings
General jurisdiction of the court means that a lawsuit is filed before the court of first instance in whose district the defendant (debtor) has their place of residence. The place of residence is determined according to the provisions of the Civil Code.
A term used interchangeably with "debtor," in a broader sense than "indebted person" (or "natural person in debt"). It includes, among others, natural persons, natural persons conducting business activities, commercial law companies, associations, foundations, and other entities conducting business activities or not conducting business activities, which have not fulfilled their obligations towards the creditor. (See "Indebted person").
It is carried out by a court bailiff during actions conducted in enforcement proceedings. It involves securing and seizing assets or rights, wages, the debtor's bank accounts, etc., in order to satisfy the creditor's claims arising from the enforcement title.
A situation in which a third party (the current creditor) acquires receivables from the previous creditor (assignment of receivables).
A process aimed at the comprehensive securing and servicing of the Fund's receivables, acquired through assignment, by a debt collection company.
Its purpose is to secure claims on movable property and transferable property rights belonging to the person establishing the pledge. To establish a registered pledge, an agreement is concluded between the person authorized to dispose of the pledged item (the pledgor) and the creditor (the pledgee), and an entry is made in the pledge register, which is maintained by the court.
An official letter sent to the debtor by the assignor or assignee of the claim, informing them about the transfer of rights to the claim, i.e., about the completed assignment of the claim from the previous creditor to the current creditor
