Spain Cuts time to collect debts by 70%

Is this the shape of things to come in Europe ? 

As of 28th December 2020, the government in Spain has cut the time to collect debts by 70%. They have put into effect an extension of Law 42/2015 of the October 5 civil procedure code reducing the Spanish “statute of limitations” (a piece of national legislation which outlines the maximum time limit within which legal proceedings have to be taken) from 15 to 5 years.

In terms of debt recovery this means that any outstanding debts due after October 7th 2015 when the original amendment was made, will only have 5 years in which they can be legally pursued. This marks a substantial change to Spanish law and means Spain now has a shorter limitation period than the UK – which is usually 6 years for simple contracts. The previous limitation period (15 years) applies to all legal actions brought before this date.

For credit-control and debt recovery for Spain, this reduction in the time to collect debts mean it will be now be critical to keep a close eye on payment deadlines and utilise swift action when a payment falls past due. This is particularly key as Spanish companies, like companies in many southern European countries, tend to be slow payers – with payment post 70 days of invoice due common. Whilst five years might still seem like a reasonable timeframe to secure your debt recovery, if there is a possibility of legal proceedings, and the lengthy delays that can often entail, it could in reality feel substantially shorter.

At 4D Contact, with our legal partnership network spanning over 120 territories, we keep fully up to date with these regional debt collection laws so that you don’t have to. We combine our extensive knowledge of these different business practices, customs, and rules and regulations, with native language speaking collection specialists, and over 30 years of credit-control and debt recovery process expertise to ensure payment of what is due as quickly as possible – whilst still maintaining those all-important customer relationships

If you have outstanding debts in Spain or any other market, contact our team of specialist advisors at sales@4dcontact.com for a no-win no fee quote

If you have outstanding debts in Spain or any other market, contact our team of specialist advisors at sales@4dcontact.com for a no-win no fee quote