In expedited payment order proceedings, a creditor can recover debts under €8,000 — including interest and fees — faster than through litigation.

However, courts say that consumer credit claims are not well suited to the expedited process. The procedure does not allow for an assessment of the substantive merits of a claim and judges have noted that many loans reaching this stage fail to meet the principles of responsible lending. In full litigation, judges can review evidence and request further clarification.

Courts are required to decide on applications for expedited payment orders within 10 working days. If granted, the debtor receives a payment proposal. The debtor may file an objection, in which case the matter proceeds through standard litigation.

Issuing loans based on registry checks is straightforward for small amounts, but the introduction of additional checks and a longer process could call the viability of the quick loan business model into question.

While consumer credit providers do not express outright fear of business collapse, they acknowledge increased pressure on companies and criticize the lengthening of the process.

Pärtel Tomberg, founder and CEO of Bondora, said the company can adjust its procedures to meet new requirements if consumer credit claims are excluded from expedited processing. However, he noted that handling all debts through litigation would increase the burden on the court system and prolong case durations.

Tomberg believes the existing system could still be improved without major disruption.

"If we agree on clearly defined and automatically verifiable data points to assess responsible lending, the expedited process could remain a practical and effective solution," he said, adding that the company is open to cooperation in shaping a process that works for all parties involved.

Kristi Saaremets, head of IPF Digital's Estonian unit — which operates under the Credit24 and Creditea brands — emphasized that the company follows all applicable laws and adheres to the principle of proportionality. She pointed out that last year, only about half of expedited order cases were related to consumer credit.

"These cases involve both banks and non-bank lenders, so the unexpected suspension of the process — and the lack of alternatives — affects a wide range of stakeholders across the financial sector," she said.

Saaremets stressed that suspending the expedited process places an additional burden on everyone and also makes the process more time-consuming for consumers. She added that she encourages customers to contact lenders early when facing payment difficulties to find solutions and prevent debt from accumulating.

The Ministry of Justice is working on reforms to the payment order system, with plans to use artificial intelligence to assess loan applicants and to establish a positive credit register.

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