SEPA Direct Debit query

Teagwee

If a person cancels a SEPA Direct Debit, can the company involved reinstate a payment - using a different number, for example? The person concerned has written to their bank to instruct them not to allow any such payment to this company, but they've been informed that they must either blacklist or whitelist to ENSURE that this doesn't happen. Is their acknowledged letter of instruction (coupled with the formal cancellation of the DD) not enough to prevent this from happening?
If the company do seek and get a payment, is the bank obliged to refund the money paid out under SEPA guidelines?

28064212

http://www.readyforsepa.ie/direct-debit.html

In particular, you have the right to:

Instruct your bank to refuse a specific Direct Debit on your bank account from an existing creditor.

and

Instruct your bank to immediately refund any Direct Debit within 8 weeks from the date it was taken from your account

Each direct debit relationship has a Unique Mandate Reference (UMR) associated with it. The company must be able to show that the debtor has agreed to a debit under that UMR. If the debtor cancels that UMR, the bank will refuse debits presented with it. The company can present a new debit request under a new UMR, but if they can't show that the debtor agreed to it, they can get into quite a bit of trouble for doing it.

Also, it's quite expensive for a company to have a debit refunded (I think it's €5 per transaction), so they really don't want to collect debits which the customer is going to reject

Legislator

The company would be in breach of the Scheme rules if they present an unauthorised direct debit after it has been cancelled. You are entitled to a no questions asked refund up to 8 weeks after an amount has debited and up to 13 months for an unauthorised transaction.

Fred Swanson

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Teagwee

Fred Swanson wrote: »

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That was what was worrying me about this but, as long as the person can get their money back, it will be okay in the long run. They don't have enough time this month to complete the blacklisting process (it involves a form and snail mail) and the company have said that they will attempt to take the DD anyway They haven't said that they will create another UMR though, but I wouldn't put it past them.

Fred Swanson

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dobsdave

Fred Swanson wrote: »

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Is that a new thing under sepa?
I have never got a notification of an upcoming dd.

In saying that I haven't set up a dd since sepa started.

Fred Swanson

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Legislator

Fred Swanson wrote: »

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You will be advised of the new UMR by the Creditor (Originator) not your bank

Fred Swanson

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28064212

Fred Swanson wrote: »

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Useful feature. However, the Creditor is required to, your bank is not

Tow

Your bank would like to think it does not have to notify you. First time SEPA debits have to be sent to the back 6 working days in advance, this it to give time for the bank to notify you and for you to reject it before it debits your account.
This call cost money to implement so the banks have choosen to ignore it.

28064212

Tow wrote: »

Your bank would like to think it does not have to notify you. First time SEPA debits have to be sent to the back 6 working days in advance, this it to give time for the bank to notify you and for you to reject it before it debits your account.
This call cost money to implement so the banks have choosen to ignore it.

That's incorrect. The requirement to notify a debtor rests solely on the Creditor. There is no requirement of the bank to notify the debtor. Here's the SEPA Direct Debit rule-book. Pages 20 to 28 cover the time-cycle of a collection, and there is no mention of the bank notifying the debtor prior to collection