Pre-notification is advice of a SEPA Direct Debit collection or a change to it. It should be provided to the Debtor (the party making payment) by the Creditor (the party making the collection) prior to a collection commencing or due date.
Examples of when pre-notification would be required:-
- At the start of a new collection
- Changes to collection/s (dates & amounts)
- Changes to Debtor details (bank accounts)
- Changes to Creditor details (company name)
It is important to note that the Debtor, may not always be your customer when using the SDD scheme. Creditors can collect an SDD from any individual or business/s with a euro-currency account at a participating bank. These Debtors may differ to those the Creditor is contractually in business with, and as such, the scheme’s rules are that pre-notification is issued to the Debtor i.e. the owner of the bank account – in all cases.
Should there be an issue with the collection going forward, and for example, the authority given for an SDD collection was disputed and a refund requested by the Debtor, then the Creditor may be asked by the banks to prove they had the correct authority and where possible, demonstrate that any advice issued was done so in the correct fashion, in order to challenge.
SEE ALSO: Pre-notification types