Reversing a SEPA Bank Transfer

Cove.Throne

Hi All,

I have had an unfortunate scenario where a person has reversed a SEPA bank transfer payment they made into my account.

I never knew this was possible with SEPA bank transfers? My bank facilitated this reversal without consulting me or asking me any details about the situation. All I know is that the person who made the SEPA bank transfer requested it to be returned. They did this after they received the goods they paid for!!

Is it that easy to reverse SEPA payments?

Bob24

SEPA direct debits are definitely easy to reverse. But I didn't think it was the case for credit transfers :eek: (I assume you are not talking about a DD transaction?)

jimmii

That's not good to hear didn't think that was really possible. Did you send it signed for? If you have proof definitely let the bank know they could investigate it for fraud possibly?

Bob24

See section 7.1 here: https://www.bankofireland.com/fs/doc/wysiwyg/css081504-sepa-credit-transfer-originators-guide.pdf

Credit Transfer File Originators can recall a File or a Transaction under the SEPA scheme.
Customers must contact the BOI Helpdesk to arrange a Recall. Please note a File or Transaction Recall can only be initiated from D up to D+10.
As Recalls are initiated after D, the debit to the Originator Account will already have taken place. Recall requests will be sent to the Creditor Bank of each of the Transactions being recalled. Each Creditor Bank must seek authorisation from the Bene ciary to debit the Bene ciary Account and return the funds to the Originator. This can take up to 10 Business Banking Days – and return of funds is not guaranteed.

Assuming the part in bold is correct, your bank should have asked for your approval before accepting the originator's bank's request to recall the SEPA credit transfer.

Maybe worth having a chat with them?

Cove.Throne

Thanks both for your replies, much appreciated.

Yes, to confirm this was not a direct debit, it was the reversal of a SEPA bank transfer.

@jimmii, Yes, I have access to definite proof that it was received on his end. I have told the bank this, but they said simply bring it to the police and not to them. They are trying to wash their hands of the situation.

The bank in question, is Number 26, a new start-up bank, backed by WireCard. I have tried nearly countless times at this stage to get a hold of someone senior for an answer, but to no avail. Their customer support have stated that Number26 is not liable for the reversal and acted within their full rights to make a reversal without notifying me of this or asking for my consent.

Thanks Bob24 for the link, from that it would appear (presuming Number26 have the same duties as BOI) that they should have asked my consent.

Might be time to lawyer up

jimmii

That's good that you have some proof you completed your side of the transaction. Report it as fraud to the Gardai see what they say. I hope it wasn't for too much. We're the bank able to say on what grounds the customer had requested it at all even?

Yggr of Asgard

Number26 is NOT a bank! I wish people would understand that, it's a technology framework on top of a Wirecard bank account, 95% of your Terms and Conditions are set by Wirecard not Number26.

Anyhow, your best bet is to contact Wirecard and log a written (or e-mail) complaint with them. Make sure you explain the situation and attach proof of the transaction (ebay auction notice for example, shipping proof, receiving proof) and give them a deadline to come back to you.

Contact for Wirecard:

Wirecard Bank AG 
Einsteinring 35 
85609 Aschheim   
Phone: +49 (0) 30 300 110 400  
E­mail: ​ service@wirecardbank.com 

If they reject your complaint, you can than contact BAFIN (the German regulator) or the Private Bank Association Ombudsman, however both of those have only limited info and processes in English, so unless you speak German you are going to face an uphill battle.

Generally speaking in my understanding of the relevant German Law (BGB) a bank can not revert a credit transaction to your account once it has been credited unless you either agree or the sending bank send a specific notice that the transaction was fraudulent. In case of the transaction being in error the bank has a claim against you. If you can proof that the transaction was not in error (which you have because you have a proof of purchase/good received) you might have a claim against Wirecard.

I would do this in parallel, complain to Wirecard bank and also pursue the person that you transacted with.

If you speak German you would be in a better position because you could log complaints online immediately with the regulator, the ombudsman and also the police in Bavaria (because of the fraudulent recall).

Good Luck.

Legislator

SEPA Credit Tranfers once posted to the beneficiary account are irrevocable. This is enshrined in law and the monies can only be reversed if the beneficiary agrees to do so. Your bank should not, by law, have facilitated this.

jimmii

Any update on this? Be interested to see how it pans out.

Bob24

jimmii wrote: »

Any update on this? Be interested to see how it pans out.

I am curious as well. But assuming the bank doesn't have a proof showing the OP explicitly allowed for the credit transfer to be reversed, I don't see how they can do anything else than refunding the money. They will probably be at a loss as the originating bank will likely refuse to reinstate the credit transfer after the reversal was approved by the OP's bank, but that is their problem for not following the SEPA procedure.

jimmii

Bob24 wrote: »

I am curious as well. But assuming the bank doesn't have a proof showing the OP explicitly allowed the credit transfer to be reversed, I don't see how they can do anything else than refunding the money. They will probably be at a loss as the originating bank will likely refuse reinstate the credit transfer after the reversal was approved by the OP's bank, but that is their problem for not following the approval procedure.

Its very bizarre they acted like that. Hopefully it was just human error and there's not some loop hole.

Cove.Throne

Hi Guys,

Sorry for the delay in getting back to this.

For anybody whose interested the issue is still not resolved. Number26 and WireCard (the bank behind Number26) are still "discussing the situation".

This has been ongoing for the last 3 weeks and they are not providing any updates whatsoever, only saying their still looking into it. In fact, they have asked me for very little information surrounding the case. Its all a bit bizarre.

I have tried to contact the person who reversed the payment nearly 100's times by now and all communication has met a dead end, so I assume it is most definitely a scam at this stage.

I have contacted BaFin (German regulator) last week, so hopefully they can help find a successful resolution or at least shed some light on the matter!

@Yggr of Asgard - thanks for the advise!

For anyone who happens to read this who is thinking of signing up for Number26 or is a member already, be very careful with how you use your account. Their customer service is appalling (check out their recent FB scalding).