Glossary

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

The customer formally accepts their obligation. As the parties agree that the debt exists, litigation can usually be avoided.

An affidavit in which the customer voluntarily discloses all of their assets. In particular, the creditors are informed about the customer’s place of employment, job, and the bank branch where the customer holds a bank account or life insurance policy. Because it is voluntary, it can save the customer costs as the creditor does not need to investigate.

A creditor transfers the rights relating to an outstanding receivable to another person. If, for example, a creditor assigns an outstanding receivable to EOS, EOS has the right to receive the outstanding payment from the customer. The payment to the old creditor does not discharge the customer of their debt if the customer has been notified about the assignment.

A legally effective assignment requires an agreement between the assignor (assigning party) and the assignee (the new creditor). The agreement of the customer is usually not required.

The seizure of assets or rights to satisfy a creditor’s monetary claims. This can include wages, bank accounts, receivables, and other tangible or intangible assets.

A document in which a guarantor pledges to assume financial responsibility if the customer defaults, guaranteed by a bill of exchange. The guarantor holds the same responsibility for paying the bill of exchange as the customer.

Bailiffs are persons who are primarily entrusted with enforcement actions for the purpose of settling outstanding debts. Their specific duties and authority vary from country to country.

An order by one party to another to pay a certain amount to the signatory or a third party. An example of a bill of exchange is a cheque, in which an account holder orders their bank to pay the bearer a certain amount.

See also Aval.

See Assignment

Formal authorisation by the creditor which allows a debt-collection agency to initiate all legally permitted collection measures necessary to achieve the full payment of debt by the customer. The debt collection agency is entitled to conclude all understandings and agreements relating to the claim on behalf of the creditor, and to accept payments from the customers.

Consumer bankruptcy proceedings can be initiated if a customer who is a private consumer is unable to repay their debt. At the end of such proceedings, the customer may be relieved of their debt if all requirements have been fulfilled.

The collection of financial claims on behalf of a creditor by a debt collection agency.

A creditor has one or more claims against a debtor or several debtors. If, for example, you ordered clothes from an online shop, then the company that operates that online shop is your creditor.

A company which specialises in collecting outstanding receivables on behalf of the creditor. The requirements which a DCA has to fulfil vary from country to country. As a reputable company, it is of great importance to EOS to comply with all applicable legislation and requirements.

Debt collection costs include all costs, fees and expenses incurred by the creditor in the course of debt collection.

A creditor sells a receivable, including all rights pertaining to such receivable, to a third party.

The customer and their creditor(s) agree on a plan according to which the customer pays the debt(s) in instalments.

When the creditor allows the customer to delay a due payment.

Discharge of debt means that the remaining debt does not have to be paid. It may be granted if the customer has paid the major part of the outstanding claim. It requires an agreement in which the creditor releases the customer from the remaining debt and the customer accepts this release. The customer’s consent is needed for discharge of debt.

An electronic writ is provided for monetary claims asserted in accordance with the provisions of the Code of Civil Procedure. The electronic writ procedure was introduced as a separate procedure, and acts as a request for payment in cases where the facts are straightforward and do not require an inquiry. The electronic writ is a legal document which allows the creditor to start enforcement actions.

By way of enforcement proceedings, the creditor enforces the collection of financial claims with the assistance of the judicial system. The aim of enforcement proceedings is to obtain the claimed amount from the customer’s assets including, for example, future income which the creditor may be able to (partially) obtain by applying for a salary pledge. The creditor can only start enforcement proceedings once the creditor has obtained an enforceable title like a final court ruling.

A civil-law agreement between a guarantor and a creditor. The guarantor agrees to fulfil the customer’s obligation, e.g. repay their debt, if the customer does not fulfil it themselves. Depending on the agreement the guarantor can be liable to repay the debt only in case the customer defaults, but it is also possible that the guarantor can be directly approached by the creditor, if the creditor so decides.

The guarantor is treated like a co-customer, but not until the principal customer has failed to fulfil their payment obligations despite being requested and reminded as appropriate.

Occurs when a customer is unable to pay the amount(s) owed to one or more creditor(s).

An agreement between the creditor and the customer or between the customer and the debt collection agency to pay off an obligation in instalments over a period of time.

Non-performing loans are debts arising from a credit contract that have not been paid despite being due and payable.

Non-performing receivables are debts that have not been paid despite being due and payable. Non-performing receivables are often called non-performing loans (NPL) even if the underlying contract is not a loan agreement.

A term which may also be used instead of “debtor”. Obligor is often used in a wider sense to include, inter alia, guarantors.

See Payment agreement

A payment order is a document issued by a court, requesting the mentioned customer to settle the claim, including interest, within two weeks or to contest it. If the customer does not contest or pay within the given period, the court will issue an enforcement order.

See Attachment

The amount the customer owes to the creditor excluding any secondary claims. For example, an invoice you are obliged to pay in return for a service, such as telecommunication services or electricity or the loan amount which you borrowed and which you have to repay.

A legally existing claim against a customer following the supply of goods or services. This often takes the form of unpaid invoices or outstanding credit repayments.

List of individual elements of the entire amount due. For example, principal claim resulting from an invoice, accrued statutory interest for delays, or additional costs of enforcement proceedings.

Factoring without assumption of liability for non-payment of debts (i.e., without credit protection) is called ‘recourse factoring’. Non-recourse factoring, also known as ‘full-service factoring’ means the factor takes on the risk of non-repayment and manages all procedures relating to collection of the debts.

If the customer requires full credit protection while taking charge of the receivables management themselves, the term ‘bulk’ or ‘in-house’ factoring is used.

See also: factoring.

See Assignment

A title is a judicial document with a writ of execution appended which states the duty to fulfil a particular obligation, e.g. to settle a due payment.

See Assignment