Objection Against a Payment Order: The Debtor’s Legal Defence

The Function of the Objection as a Legal Remedy Against a Payment Order

The payment order is a powerful and expedited legal mechanism for the collection of monetary claims. It is regularly employed by banks, funds, loan servicers, as well as private individuals and businesses. However, due to the summary nature of the procedure, there is a risk that payment orders may be issued without fulfilling the statutory requirements, depriving the debtor of a meaningful opportunity to defend themselves. In such cases, the debtor’s legal remedy is the objection (ανακοπή) against the payment order.

Specifically, the objection constitutes the primary and most effective legal tool available to the debtor to challenge either the legality of the procedure or the substance of the claim. When filed in a timely and substantiated manner, it can result in the total or partial annulment of the payment order, thereby protecting the debtor’s assets and halting any enforcement actions (such as seizures or auctions).

When Can an Objection Be Filed Against a Payment Order?

According to Article 632 of the Greek Code of Civil Procedure, the objection must be filed within 15 working days from the service of the payment order. It is submitted before the court that issued the order and seeks either its annulment or modification, provided that the legal conditions for its issuance have been violated.

Main Grounds for Acceptance of an Objection

Recent case law indicates that Greek courts annul payment orders based on one or more of the following grounds:

1. Lack of Required Documentation or Procedural Irregularities

A payment order can only be issued if the claim is proven through written evidence. If the supporting documents are incomplete or missing (e.g. loan agreements, default notices, assignment agreements between the bank and the fund/servicer), the order may be annulled on procedural grounds. Examples:

Athens First Instance Court Decision No. 7306/2022 – Payment order annulled due to missing addendum to the loan agreement.
Thessaloniki First Instance Court Decision No. 2642/2023 – Loan default notice was not submitted.

2. Statute of Limitations on the Claim or Its Components

Claims for loan instalments or interest may become time-barred (typically after five years), unless the statute of limitations has been interrupted or a formal default has been declared. In such cases, the payment order may include prescribed amounts and is therefore subject to annulment:

Athens First Instance Court Decision No. 1316/2025 – Entire claim declared time-barred.
Alexandroupoli Magistrate Court Decision No. 4/2023 – A significant portion of a mortgage loan was deemed prescribed.

3. Non-Existence or Non-Liquidated Claim

The claim must be specific and fully liquidated. When the amount or calculation is vague (e.g. abusive interest rates, opaque charges), the payment order may be annulled:

Livadia First Instance Court Decision No. 39/2022 – Use of abusive interest rate based on a 360-day year; order fully annulled.
Athens First Instance Court Decision No. 1144/2025 – Amount not sufficiently justified; claim deemed non-liquidated.

4. Lack of Legal Standing of the Applicant

Servicers and funds must prove that the claim has been legally assigned or transferred to them. In the absence of such documentation, the objection is upheld:

Athens First Instance Court Decision No. 601/2025 – Legal documents proving standing were not served.
Kavala First Instance Court Decision No. 241/2023 – Servicer failed to prove legal standing when filing the application.

5. Vagueness or Improper Structuring of the Claim

For a payment order to be valid, the claim must be clearly broken down—indicating the principal, interest, charges, and the exact calculation of the total amount requested. If the order is based on ambiguous or inadequately substantiated figures, the objection may be accepted:

Athens First Instance Court Decision No. 1144/2025 – Order annulled due to vague reference to the claimed amount.
Thessaloniki First Instance Court Decision No. 11798/2024 – Improper limitation of the claim due to vagueness.

What Does the Debtor Achieve by Filing an Objection?

If the objection is successful:

The payment order is annulled and loses its enforceability.
Enforcement actions, such as account seizures, third-party garnishments, or auctions, are revoked.
The debtor gains valuable time and negotiating power when preparing for a debt settlement or out-of-court resolution.

Objection as a Tool for Asset Protection

Experience shows that many debtors are unaware of their rights or miss critical deadlines. In reality, the objection against a payment order is the debtor’s most powerful legal weapon:

To protect their primary residence,
To lift garnishments imposed on third parties (e.g. bank accounts), and
To establish a legitimate position for negotiation with the fund or servicer.

In many cases where enforcement is based on erroneous or incomplete data (e.g. lack of default notice, absence of assignment agreement or supporting documents), the objection may be the only available remedy.

Conclusion

The 15 working-day deadline for filing an objection is extremely strict and requires immediate action. Prompt legal advice is essential—not only to meet the deadline but also to properly assess the case and develop a sound, evidence-based legal strategy.

A structured and well-documented approach from the outset significantly increases the likelihood of successful judicial protection.

Papatriantafyllou & Thamasemari Law Firm has extensive experience in filing objections against payment orders, annulling enforcement measures and representing debtors in disputes with banks, servicers, and funds. We have successfully handled dozens of such cases before courts of all levels, ensuring effective protection of our clients’ rights and interests.

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Disclaimer: This publication is intended for informational purposes only and does not constitute legal advice. Professional legal guidance should always be sought before acting on any information contained herein.