Changing the rules of issuing bills of exchange by consumers

On 24 September 2021, the Act on amending the Act – Code of Civil Procedure and certain other acts (Journal of Laws of 2021, item 1655) entered into force. Among other things, the act changes the drafting of contracts with consumers by entrepreneurs.

The new amendments to the Bill of Exchange Law introduce a specific solution as to bills of exchange issued by consumers. According to the wording of the added art. 11a of the Bill of Exchange Law, a bill of exchange given to an entrepreneur within the meaning of the Civil Code should contain a reservation “not to order” or other equivalents. This applies to promissory notes issued to satisfy or secure a debt arising under a contract with a consumer.

What happens if an entrepreneur accepts and transfers to another person a promissory note that does not contain the specified reservation? In such a case, he is obliged to repair the damage suffered by the issuer of the bill of exchange by paying the bill. Such liability of the trader towards the consumer will also arise if the bill of exchange is held by another person against the entrepreneur’s will.

The new regulation will demand changes in bill of exchange templates and declarations used by entrepreneurs. Non-compliance with the requirements will result in the obligation being covered instead of the consumer.

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