Further information on SEPA direct debit

Further Information

Recurring and single SEPA direct debits

For recurring SEPA direct debits, the authorisation by the payer is used for regular SEPA direct debits initiated by the creditor.

In the case of single SEPA direct debits, the debtor issues an authorisation once for the collection of a single SEPA direct debit; the authorisation cannot be used for subsequent transactions.

Distinguishing features of the SEPA business direct debit scheme from the SEPA Basic Direct Debit scheme

Pursuant to §675e para. 4 BGB in conjunction with §675x BGB, non-consumers may be excluded from a refund right for authorised payments. This waiver is explained in the text of the SEPA business direct debit Mandate. Therefore, the payer in the SEPA business direct debit scheme may not be a consumer.

The debtor's credit institution will only redeem the direct debit if the debtor confirms the granting of the mandate to the credit institution prior to the first debit.

Compared to the SEPA basic direct debit scheme, the submission period for both the first and subsequent direct debits is reduced to one day before the due date.

The debtor shall inform the bank immediately of any changes or cancellation of the SEPA business direct debit Mandate vis-à-vis the creditor.

By checking the mandate data each time a direct debit is redeemed on the basis of the redemption agreement, the debtor's claims for refunds are generally excluded.

SEPA Pre-Notification

Addressee

The addressee of the SEPA pre-announcement is always the account holder named in the SEPA mandate. If the account holder is different from the contractual partner, the deviating account holder must receive the SEPA pre-notification.

Until now, it was not necessary for the direct debit recipient (creditor) to enter the address data of a different account holder for the direct debit scheme.

According to the German Banking Industry (Deutsche Kreditwirtschaft (DK), if this information is missing in inventory management, it is sufficient to inform the contractual partner and ask him to forward this information to the account holder.

According to the SEPA Rulebooks, a contractual agreement that completely dispenses with advance information is not permissible. However, the payer's bank is not obliged to check whether a SEPA Pre- Notification has been sent, as this obligation relates purely to the relationship between the creditor and the payer.

If SEPA follow-on direct debits are planned, a single SEPA Pre- Notification to the debtor prior to the first SEPA direct debit is also sufficient, provided that all agreed collection amounts and SEPA due dates are listed in the letter.

An avis of the SEPA direct debit by the debtor's bank does not replace the creditor's SEPA pre-information obligation, even if it is also the creditor's bank.

Minimum Information

• Amount
• SEPA due date
• SEPA Creditor Identifier (SEPA Creditor ID)
• SEPA Mandate Reference (SEPA Mandate ID)

Deadlines

The agreed SEPA pre-information period must not be shorter than the respective lead times for SEPA file submission to the payee's bank: The pre-information notice is sent to the account holder named in the mandate. In the case of a joint account (several account holders), it is only to be sent to the account holder/contractual partner named in the mandate.

Pre-notification enables the debtor to provide the necessary cover on his account in good time or, in the event of discrepancies, to seek clarification with the creditor.

Pre-notification must always be sent to the debtor before the SEPA Direct Debit file is submitted to the creditor's bank.

Overview: Key legal requirements

Pre-notification must be sent at least 14 calendar days before the due date. The creditor and debtor (does not have to be the creditor's contractual partner at the same time) can agree bilaterally on a shorter period, but under the SEPA Rulebook they cannot waive it.

A pre-notification must be reissued and resent to the debtor if the due date or amount changes (e.g. due to technical difficulties).

If the amount of the individual contributions or the due dates change during the year, a new advance notice with details of the changed dates is required each time.

In the case of recurring direct debits (subsequent direct debits), it is sufficient to inform the customer once before the first direct debit, specifying the future due dates and the agreed collection amounts. According to the German Banking Industry, the creditor does not need to ensure that the advance information sent by the creditor has been received by the debtor.

The method of delivery of the pre-notification is not regulated. Possibilities: Invoice, advice letter, fax, e-mail, SMS, telephone call.

Failure to give pre-notification of a SEPA direct debit is a breach of duty arising from the "corporate customer-bank" collection contract. As a result of such a breach of duty, a return debit note is permissible.