Portugal's debtors blacklist expands by 80% in a year

There are now 100,000 debtors appearing on the published list - since the start of 2014 the number has grown by an average of 170 people and companies each day.

The list was started in 2009 as a way of shaming people into paying. This clearly has not worked as in five years there are over 100,000 debtors listed by the Ministry of Justice.

There will be a further jump this September with the entry into force of the new billing procedure which has provoked the collapse of hundreds of businesses.

According to data provided by the Ministry of Justice run by Paula Teixeira da Cruz, there were 101,379 on the worryingly titled 'List of Public Executions' as at the end of June 2013, representing an increase of 77.5% over the first half of 2013. Numerically this is a rise of 13,354 new debtors publically named and shamed in a year.

This database is publicly accessible through the Finanças website and ostensibly was created to push reluctant debtors to pay up or see their names in public.

This blacklist fit all types of debtors including those that have not paid electricity or phone bills, or companies that are late in paying for goods and services

The other objective was to reducing the number of cases coming before the courts. This has been successful as in the last quarter of 2013 the number had reduced 11.9% although there is still a backlog of 1.1 million cases which the new court system will start to cope when it becomes smooth and efficient after its September 1st relaunch.

In terms of processing speed, the new Code of Civil Procedure now can archive processes that have been inactive for over three months and money can now to be taken directly from the bank accounts of proven debtors without the prior permission from a judge.

From September 1st alongside the new judicial map there is something called PEPEX, a  pre-court procedure which is mean to be a more flexible mechanism that will allow those owed money to search in different databases for goods to grab to see if it is worth going to court to enforce recovery proceedings.

These measures are all pro-creditor and anti-debtor. With the massive growth in debtors in Portugal it would be a socially responsible government that set up advice and help systems for those whose family lives are under stress due to the pressure of debts.

For a list of social security and tax debtors, go to

https://www.portaldasfinancas.gov.pt/pt/menu.action?pai=100

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