Is notification of a SEPA Direct Debit collection necessary?
YesA Debtor must be provided with ‘Pre-notification’ as a rule under the SEPA Direct Debit scheme. The notification should provide details of the Debtor’s (the individual making the payment) upcoming Direct Debit collection/s, when it will commence and/or if there is a change to a collection. The scheme rules clearly state that a collection should not be made without pre-notification being provided. This must take place, at the latest, 14 Calendar days prior to the collection. 14 days is standard for all companies collecting under the scheme.
What does the Debtor need to know?
- Due date
- Unique Mandate Reference (UMR)
- Creditor Identifier or Creditor Identifier Number (CIN) – the unique identity of the party making SDD collections which is provided to the Creditor by the Creditor Bank)
- Payer’s IBAN (optional)
- Payer’s BIC (optional)
What if it’s too late? i.e. less tha 14 days to the collection?
One to one arrangements between the Debtor and Creditor are permissible under the SEPA Direct Debit Schemes when referring to pre-notification. Agreeing any arrangements in writing is recommended in case of disputes.