SEIZURE OF ACCOUNTS WITH REVOLUT AND OTHER BANKS IN THE EUROPEAN UNION

Once they download the app and open an account through it, users effectively become customers of a bank that opens an account for them and holds their funds. Within the European Union, Revolut is licensed to conduct banking business. In a nutshell, Revolut's mobile app allows bank transfers with the funds that the user has deposited into their bank account. The bank in question and the accounts that Revolut users have with it do not differ in their legal regime from the bank accounts of other banks operating in the Republic of Bulgaria. The latter is particularly important for creditors who cannot collect their debts from their debtors, insofar as bank accounts held with Revolut are eligible for action to secure or enforce monetary claims.

The difference between the Bulgarian bank accounts and the Revolut accounts is the bank's domicile, which makes it difficult to impose seizures on the accounts in question. In order to overcome the difficulties involved in securing monetary claims where the debtor has accounts with a bank in the territory of another Member State, the European Union has provided for a procedure for issuing a European Account Preservation Order. This procedure allows a creditor in one Member State to request and obtain an order attaching the accounts of his debtor in a bank operating in the territory of another Member State. Thus, in addition to accounts with traditional credit institutions, it is also possible to attach accounts with Revolut and accounts of users of other electronic payment applications that are licensed to carry out banking activities in the EU.

It should be noted that the procedure also allows the opposite approach - creditors from other Member States of the Union can obtain an order from the court in their country of residence to enforce against the accounts of their debtors in Bulgarian banks.

The procedure starts with an application to the court for a European Account Preservation Order. The application is accompanied by relevant evidence justifying the need for a European Account Preservation Order. Where the creditor has not yet obtained an enforceable instrument, sufficient evidence must also be produced from which the court can conclude that the claim against the debtor is likely to succeed on the merits.

Once the order has been issued, the creditor does not need any further judicial acts or recognition by the court of the Member State in which the attachment is to be enforced. However, a translation by the authority in the State of enforcement is necessary. There, the attachment of the accounts shall be effected immediately in accordance with the procedure laid down by the national law of the State of enforcement.

The procedure under consideration will be effective if the debtor actually has bank accounts in the territory of the State concerned. If the creditor is in possession of such information, there is no obstacle to indicating directly the account numbers or the bank in which they are opened. In the absence of such information, it is prudent, before proceeding to issue an attachment order, to ask what accounts the person has with banks operating in the territory of the State concerned.

The entire procedure for issuing the attachment order requires knowledge of the specifics of the EU regulations as well as the applicable Bulgarian law. In order for the subsequent execution of the order to be swift and effective, the creditor should be familiar with the enforcement procedures in other EU Member States as well as with the authorities through which it is carried out.

KGK Law Firm's team is experienced in handling the warrant procedure in Bulgaria and its enforcement in other countries. In order to ensure more efficient and quicker enforcement of interim measures, the firm maintains contacts with law firms and bailiffs in Member States, who can always be contacted for assistance.

If you need a debt collectionattorney, contact us!

If you have information that your debtor holds funds in bank accounts in an EU Member State, or if you already have an attachment order issued by a court in a Member State that you wish to enforce against your debtor's bank accounts in Bulgaria, do not hesitate to contact us.