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FOR DEBTORS

Glossary

APR – Annual Percentage Rate, i.e. the total cost of credit incurred by the consumer and expressed as a percentage of the total credit amount per annum.

 

Assignment – e.g. transfer of claims (debt) from a bank to a debt collection company based on a contract of sale between the parties.

 

BIG (Biuro Informacji Gospodarczej, Credit Reference Agency) – commonly referred to as “Black list of debtors”. It receives, stores and shares economic information and data.
Individuals and businesses that have not repaid their debts on time could find themselves on the list of debtors. If your data is recorded in the files of BIG you may be faced with problems while trying to conclude agreements with telecom operators, loan/borrowing agreements, hire purchase contracts, or insurance contracts for your flat, car or family.

 

BTE (Bank Enforcement Order) – a document being a bank's statement confirming the existence of mature debt towards the bank under the outstanding loan. The Bank is authorised to issue such a document without the need to prove the debt in court. The only prerequisite is having the debtor's voluntary enforcement undertaking (usually such a document is signed at the execution of the credit agreement). When the BTE is endorsed with an enforcement formula, it becomes the basis for commencement of judicial enforcement proceedings.


Creditor – e.g. a bank or a debt collection company which may demand performance from the debtor.

 

Credit Risk Rating – a procedure performed by the Lender to evaluate the consumer's ability to repay the loan with interest, within the deadlines specified in the consumer loan agreement.


Debt – a financial obligation towards a bank or company.

 

Discontinuance of enforcement by a judicial enforcement officer – the enforcement proceedings may reveal some circumstances that prevent their continuation such as the fact that the debtor has no property. Then the enforcement by a judicial enforcement officer may be discontinued. Please note that discontinuation of enforcement by a judicial enforcement officer is not tantamount to remission of debt, neither in whole nor in part. Debt remission is not to be confused with discontinuation of enforcement by a judicial enforcement procedure as the latter event only means that the enforcement officer has ceased the procedure but the debtor is still obliged to repay the debt. If the enforcement instituted based on a final court ruling (judgment, order for payment) is discontinued, the creditor may, within the period of 10 years, refer the case again to a judicial enforcement officer.

 

Enforcement against the mortgaged real estate – if the debtor fails to voluntarily pay their debt, the creditor may request that the amount should be recovered against the debtor's mortgaged real estate. If this is the case, then the first creditor to be satisfied will be the one for whom/which the mortgage was established, whereas other creditors will receive their claims later on. 

 

Enforcement by a judicial enforcement officer – it is instituted when despite a previous court ruling (judgment, order for payment) the debtor still fails to pay their obligations. The task of the judicial enforcement officer is to conduct the proceedings so as to effectively enforce the creditor's claims against the debtor's property. The court enforcement officer acts on the basis of the creditor's motion for enforcement, and within the limits of the court's writ of enforcement.

 

EPU (Electronic Writ-of-Payment Proceedings) – proceedings in which the court actions are recorded only in electronic form, and an electronic order for payment is issued. The proceedings is conducted for uncomplicated cases which do not require evidence taking. Thanks to EPU, the court proceedings resulting in the issue of an order for payment is much faster. EPU is most commonly used for monetary claims.

 

Guaranty – a civil law agreement in which the guarantor undertakes to pay the debtor's debt if the latter fails to do so.

 

Lombard rate – interest rate on (price for) credit provided by the National Bank of Poland (NBP) to other banks. The rate is variable. It is determined by the Monetary Policy Council (RPP). The Consumer Credit Act allows charging interest at a rate equal to four times the Lombard rate. The Lombard rate is also the reference for establishing maximum interest for late payments.

 

NSFIZ – non-standard closed-end securitisation investment fund. NSFIZ is a fund specialising in the acquisition of non-performing debt. The establishment and operation of such funds are both regulated by the Investment Funds Act.

 

Order for payment – a court ruling issued based on a statement of claim and the accompanying documents. The order for payment is issued during a closed session, without the participation of the parties. In the order for payment, the court orders the defendant (the debtor) to pay to the plaintiff (creditor) a specified amount within the prescribed period, or lodge an objection.

 

Outsourced debt – any debt the handling of which has been entrusted to a third-party entity. BEST's role is that of the contractor, which means that it acts on behalf and for the account of the creditor company.

 

Securitised debt – any debt that is serviced on behalf of an investment fund to which it has been sold. Here BEST acts as a manager.

 

Sensitive data – specifically protected personal data, such as health, religious beliefs or political views.

 

Servicer – a company that carries out debt collection activities.