- Hans Weber
- December 1, 2023
Prague Public Transit Company Makes Strides in Addressing Unpaid Fines, Seeks Law Firms for Debt Collection
In recent years, the Prague Public Transit Company (DPP) has made significant progress in tackling the issue of unpaid fines and claims. Through two amnesty initiatives, cancellation of child and minor executions up to 1,500 crowns, and the termination of “bagatelní” executions, DPP has successfully stopped over 100,000 executions. Debtors have saved a substantial amount of 149.8 million crowns in interest and fees, while the company has collected 15.9 million crowns in securities.
The majority of terminated executions were minor executions, which are automatically canceled after three years under the amended law. DPP addressed claims dating from 1993 to 2008 when fines were lower, and securities fell within the previous 1,500 crown limit that is no longer applicable today. A total of 84,867 executions were canceled. In the first national amnesty initiative, 13,846 cases were terminated, followed by 1,366 cases in the second initiative.
While DPP has made progress in resolving the initial phase of debt collection, the company still faces numerous outstanding claims. It is currently seeking the services of three law firms to represent its interests in debt collection. The tender for this was published outside the scope of the Public Procurement Act. The introduction of card payment options on the spot or through subsequent transfers has contributed to a decrease in the number of fines that require collection.
Unpaid fines within 30 days accounted for 23.7% of cases last year, a decrease from over 30% in previous years. Approximately half of the cases in the past year saw individuals making on-the-spot payments, compared to the previous range of 35-40%. Currently, DPP has approximately 55,000 outstanding claims, totaling 929 million crowns. About 40,000 claims are from the period between 1993 and 2008, while 518,000 are more recent. The average amount of securities associated with the claims is 1,665 crowns, and the current success rate of debt collection law firms stands at around 30%.
DPP has made significant strides in addressing the issue of executions, but the challenge of outstanding claims remains. The company’s search for law firms to assist in debt collection is a step toward reducing the number of unpaid fines and improving overall financial recovery.
Article by Prague Forum