The European Parliament has voted to increase the amount which can be claimed through the European Small Claims Procedure (ESCP) from €2,000 (£1,473.54) to €5,000.

The ESCP was first introduced in 2009, and provides people and companies with a simpler means of recovering small amounts of capital from across borders. The procedure involves filling out a form which, assuming the claim is successful, is legally enforceable in any EU member state.

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MEP Lidia Joanna Geringer de Oedenberg said: "Simplifying the litigation process and reducing the costs of cross-border small claims is important especially for consumers and SMEs. The European Small Claims Procedure has reduced the costs of litigation for cross-border small claims by up to 40% and the duration of litigation from more than two years to an average of five months, so I am pleased that in future the procedure will be available for more cases."

Now the EP has more than doubled the limit that can be claimed.

Other changes made included encouraging the use of distance communication technology in court cases, and telling member states to provide free, practical assistance to fill in the forms to parties involved in such disputes.

It also said that court fees should be proportionate, specifically that court fees should be no higher than the court fees charged for simplified court procedures.

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The new €5,000 ceiling is also to be reviewed within the first five years of its lifetime.

Before coming into force, the new rules will need to be approved by the Council of Ministers. If they approve, the new rules will take effect 18 months after they become law.