There was another Draft proposal of the Law on Amendments to the Enforcement Law. The Enforcement Law regulates the procedure by which courts and notaries public carry out the enforcement of claims based on enforceable and authentic documents, the procedure for securing claims and substantive legal relations that arise in the course of and as a result of enforcement procedures and insurance procedures.
The Enforcement Law and the Enforcement Law of Financial Assets constitute the legislative framework for the implementation of extrajudicial enforcement of financial assets carried out by the Financial Agency, employers and the Croatian Pension Insurance Institute. The aforementioned represents an administrative burden for employers and CPII, and it has been shown it is not possible to establish a uniform priority order and that employers are often in doubt as to how to proceed.
It is necessary to relieve employers administratively through legislative intervention.
Employers and CPII are released from the enforcement duty
The bailee’s dignity will be respected. After this Act enters into force, employers and other payers of monetary benefits will continue to enforce enforcement only based on the documents on which they are already in enforcement. They will not receive new enforcement documents.
By this, employers and CSII are released from the enforcement duty on salary and pension. When the rights acquired by already received enforcement documents are exhausted, they cease to be the bodies that carry out the enforcement.
The proposed solution is that all executions will be carried out according to a single priority order on funds at the Financial Agency (FINA).
In situations where a salary or other permanent monetary income is not paid into the account, a special dedicated account for execution is foreseen.
The financial agency cannot collect in other countries
Digital banks like Revolut could pose a problem for the financial agency. Namely, FINA cannot carry out the collection in other countries. Enforcement can be carried out exclusively on accounts opened in banks in the Republic of Croatia.
Consequences of the new Law
The new Law adoption envisages the balancing of the existing system of enforcement as well as an additional improvement while recognizing the need for the enforcement procedure to be carried out quickly, efficiently and economically. Also, the goal is to protect the dignity of the person being executed and to ensure the execution is carried out in the most favourable way possible.
