Prague Public Transit Company Stops Over 100,000 Executions

In recent years, the Prague Public Transit Company (DPP) has taken significant steps to address the issue of unpaid fines and claims. Thanks in part to two amnesty initiatives, the cancellation of child and minor executions up to 1,500 crowns, and the ending of “bagatelní” executions, DPP has stopped over 100,000 executions. Debtors have saved CZK 149.8 million in interest and fees, and the company has collected CZK 15.9 million in securities.

The largest share of terminated executions were minor executions, which are automatically canceled after three years under an amended law. DPP involved claims from 1993 to 2008, when fines were lower, and securities fell within the CZK 1,500 limit, which no longer applies today. 84,867 executions were canceled. In the first national amnesty initiative, the company terminated 13,846 cases, and in the second, only 1,366.

DPP has been working to solve the first debt collection phase, but the company still faces many claims. It is currently seeking three law firms to represent it in debt collection. The company issued the tender by publishing it outside the Public Procurement Act. Generally, the number of fines that need to be collected decreases due to the possibility of paying by card on the spot or later by transfer.

Last year, unpaid fines under 30 days accounted for 23.7% of cases, compared to over 30% in previous years. In half of the cases last year, people paid on the spot, whereas it used to be between 35 and 40%. The company currently has about 55,000 claims outstanding, totaling CZK 929 million. About 40,000 are from 1993 to 2008, and 518,000 are younger. The average amount of securities for claims is CZK 1665, and the success rate of debt collection law firms is currently around 30%.

DPP has taken successful steps to address the issue of executions but still faces many claims. Hopefully, the company will be able to find law firms that will help it collect debts and reduce the number of unpaid fines.