New Order of Payment Regulations Take Effect, LAF is Here to Help: Press Conference on Filing the First Retrial Case under the Amended Act with Legal Aid Support

In recent years, the prompt and efficient order of payment system has been abused by bad actors and scam syndicates. Whenever victims mistakenly assume they do not owe any debt and dismiss court documents, they find themselves trapped overnight as victims of the system. The courts have also repeatedly become indirect accomplices to fraud due to the abuse of payment orders, sparking public concern. To resolve these issues, the Judicial Reform Foundation formed a legal team to advocate for legislative amendments. The Legislative Yuan subsequently passed the third reading of the amendments to Chapter on Urgency Procedure in the Code of Civil Procedure, which took effect on July 3, 2015. In addition to reducing the legal effects of payment orders, the amendments also allow victims from the old law era to file for retrial relief within two years. LAF and JRF jointly held a press conference today (the 13th) to call on victims of payment orders to bravely step forward and seize the opportunity to seek justice.

According to recent news reports, a Mr. Chu who operated a country chicken restaurant in Kaohsiung was targeted by a Mr. Wu—who had multiple prior convictions for forgery. Mr. Wu used a forged promissory note to apply for a payment order from the court, saddling Mr. Chu with an unexplained debt of NT$300,000 and causing his restaurant to be auctioned off by the court, leaving him in despair. Although a subsequent prosecutorial investigation confirmed that the promissory note was not signed by Mr. Chu, because it could not be proven that Mr. Wu was the one who signed it, the court dismissed Mr. Chu's application for a retrial against the payment order on the grounds that the forger had not been convicted by a final judgment. This effectively cut off all avenues of relief for Mr. Chu! Now that the legal amendments have passed, Mr. Chu's application for legal aid under the new law has been approved. Accompanied by legal aid attorney Liu Chia-jung, he will file for a retrial with the Kaohsiung District Court, hoping to help restore fairness and justice for Mr. Chu!

Legislator Lin Kuo-cheng stated that the amendment bill for the payment order was proposed by him and co-sponsored by 24 other legislators, successfully passing in the previous session. He hopes this legislative amendment will achieve its intended effects, ensuring that payment orders are no longer abused by scam syndicates and turned into tools for fraud. Following the implementation of the new law, he encourages the Judicial Yuan and local courts to establish appropriate supporting measures, implement the new law faithfully, and redress injustices. Kuo-cheng will also continue to fulfill his responsibilities as a legislator, acting as a voice and serving the public.

Legal Aid Foundation Secretary-General, Attorney Chen Wei-hsiang, stated that following the implementation of the new law, creditors applying for a payment order in the future must not only present relevant evidence but also explain the factual grounds before the court will issue a payment order. Even if the court issues a payment order, it will only serve as a basis for the creditor to apply for compulsory execution and will not possess the same effect as a final court judgment. If citizens fail to voice an objection within twenty days of receiving a payment order, they may still subsequently file an action for confirmation of non-existence of debt. The Foundation can also issue a guarantee letter in lieu of a deposit to suspend the court's compulsory execution. As for citizens who ran out of time to object to payment orders before the amendments and found themselves burdened with inexplicable debt, as long as they can prove that the evidence attached to the original payment order (such as promissory notes, checks, contracts, etc.) was forged or altered, or can present other evidence favorable to themselves, they may file for a retrial within two years of the new law's implementation and petition the court to exempt them from unsettled debts. The Legal Aid Foundation has issued internal notices to meticulously review such individual cases; as long as there is room for legal assistance and financial eligibility standards are met, a legal aid attorney will be assigned to file for a retrial on behalf of the victims to fight for their rights. If citizens have any questions, they can dial 412-8518 (add 02 from mobile phones) to inquire about legal issues or obtain reservation phone numbers for local branches.

Attorney Liu Chia-jung, Standing Executive Committee Member of the Judicial Reform Foundation and also Mr. Chu's legal aid attorney for the retrial, stated that LAF and JRF have jointly edited and completed explanatory materials including the "Sample Retrial Petition," "100 Questions for Payment Order Victims," and "Payment Orders You Cannot Afford Not to Know." These will be made available on the official websites of JRF and LAF for public browsing and reference, enhancing public awareness of the new payment order regulations. He also suggested that the courts should echo the intent of the new law by raising the threshold for issuing payment orders to prevent tragedies from recurring, and urged courts to carefully review retrial cases filed after the implementation of the new law, returning a hopeful tomorrow to victimized citizens!

Press Contacts

Attorney Yang Lin-cheng, Executive Secretary of the LAF Kaohsiung Branch
Attorney Liu Chia-jung, Standing Executive Committee Member of the Judicial Reform Foundation