Polish Court Seeks EU Clarification on Late Payment Compensation

A Polish court has referred a question to the Court of Justice of the European Union (CJEU) regarding whether national courts can refuse the fixed €40 compensation for debt recovery costs under Directive 2011/7/EU. The case involves a dispute where a creditor sought the fixed compensation for a payment that was only five days late, without requesting interest on the principal debt.

The referring court is investigating whether the directive allows a court to deny this compensation if the claim is deemed unfair or contrary to the directive's objectives. The specific circumstances involve a creditor that filed hundreds of similar claims against the same debtor, leading the local court to question if such practices constitute an abuse of law.