Who is liable under the SEPA Direct Debit Scheme?
The banks are bound by the rules of the SEPA Direct Debit scheme and as such must protect the integrity of the scheme at all times.
However, Creditors are equally responsible for their SDD process being compliant. through thier SEPA agreement . This is typically via an agreement/ contract, with their Creditor Bank, who grants the permission collect by SEPA Direct Debit. The bank in turn provide the Creditor with a unique identity (Creditor Identifier) for use with the scheme.
The ability for a Creditor to use of the scheme for Creditors conditions inclusive of the Creditor owning a Euro bank account for the collections, being of good financial standing, the predicted collection volumes and adherence to the scheme rules at all times.
If a Creditor is operating both schemes, errors may arise from manual or automated processes of submission, which might result in undesired and unintended interference between the two Schemes. Principally, under the rules of the SEPA DIrect Debit scheme, the Debtor bank is allowed to return or reject collections presented as B2B when used under the ‘Core’ scheme.