Being registered with the OP represents a major and serious constraint in daily life, and particularly in carrying out important administrative, financial and legal procedures. Writing off a paid claim can be done automatically. However, opting for immediate write-off after payment of all debts avoids a great deal of inconvenience.
Why write off a paid lawsuit?
Faced with the economic crisis, many individuals are turning to credit. Some take out loans to get out of a temporary financial bind. Others use this alternative to finance an important personal project.
In Switzerland, credit applications are based solely on a file review. Credit agencies base their decisions primarily on the creditworthiness of the loan applicant. They may refuse the application if the applicant is registered with the Office des Poursuites (OP). In accordance with the laws governing financial procedures, any late or unpaid payments are registered with the OP. This information is made available to lending institutions as part of their assessment of the financial situation and creditworthiness of loan applicants.
A lawsuit can lead to a number of problems
Individuals whose names are registered with the OP rarely obtain private credit . As a result, they find themselves in the red or obliged to postpone, or even give up, the realization of their personal projects.
On the other hand, a person who has been prosecuted has to deal with many constraints on a day-to-day basis. The certificate of non-prosecution becomes an essential document. It is often required for administrative procedures linked to major purchases, such as a car or property. Some employers also ask for this certificate when applying for a job. It can also be an excerpt from the court proceedings. That's why it's so important to have a paid debt expunged without delay.
How to quickly write off a paid lawsuit
It is important to note that the PO keeps the list of debtors for a legal period of 5 years. This is from the date of registration. Debtors who have repaid their debts in full within this period are automatically removed from the PO's list at the end of the five-year period. The creditor may request that the debtor be removed from the PO's list before the deadline.
Ensure that the write-off is carried out correctly
Some creditors submit a request for automatic cancellation as soon as the debtor has paid the debt in full. But to ensure that a paid debt is written off, the ideal solution is for the debtor to reach an agreement with the creditor. To do this, the debtor must send a written request for cancellation to the creditor. This request follows full repayment of the debt. Once payment has been received, the creditor undertakes to forward the write-off request to the debt-collection office. In this way, proceedings can be brought to a swift close.
The creditor must then submit a request for cancellation of the debt to the Debt Enforcement Office. The cancellation takes immediate effect, following receipt of the cancellation request at the OP.
The creditor may refuse to carry out the procedures required to cancel a paid debt. In this case, the debtor has no recourse but to wait 5 years, until the entry is automatically deleted.
Fees for cancellation of a paid lawsuit
The law governing finance does not provide for the application of specific fees for the cancellation of paid claims. However, some creditors charge their debtors for carrying out the procedure. This practice is not, in itself, fair. Nevertheless, current Swiss legislation does not prohibit it.
Financial experts strongly advise debtors to pay the fees requested by their creditors. These fees relate to the write-off of a claim that has already been paid. This is the only way to regain full credibility. This applies in everyday life as well as in dealings with third parties. Merchants, recruiters, credit agencies, banks and even public institutions all have access to it. This approach restores trust at every level.
What to do in the event of unjustified prosecution?
Until December 2018, no proof of debt was required to register with the PO. As a result, abusive lawsuits against perfectly credible and solvent individuals were commonplace. Victims thus found themselves unjustly handicapped in their finances and personal projects.
Visit latest reform was adopted with the aim of mitigating abusive lawsuits as far as possible. As a result, the following provisions came into force on January 1, 2019:
- The possibility for a registrant to serve a wrongful pursuit and submit a request for non-disclosure of the pursuit to the PO, within a legal deadline of 10 days. This applies from the date of receipt of the payment order.
- POs are expressly prohibited from disclosing the identity of a registrant to third parties who have sent a letter requesting the deletion of the registrant's entry from the prosecution extract.
- The creditor may not cancel the registration.
- The creditor is obliged to continue the proceedings within 20 days of the debtor's request to the PO to be struck off the register, if his action is legitimate. After this deadline, the debtor automatically wins the case and is removed from the debt collection register.
If the PO obtains proof of claims from the creditor, or if the creditor decides to continue the procedure, the lawsuit is made known to third parties.
It is important to note that any abusive lawsuit is considered defamation. Which, moreover, infringes on the integrity and freedom of action of others. This act is therefore punishable by law, as stipulated in article 181 of the Swiss Penal Code.
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