What’s the difference between an authorised and unauthorised SDD under the Core scheme?
Authorised – the collection was authorised with a valid Mandate from the Debtor (paper or paperless sign-up).
This can be requested within 8 weeks of the SEPA Direct Debit settlement date on a ‘no questions asked’ basis. The Refund is provided to the Debtor by the Debtor bank. Settlement of the Refund must occur at the latest, 2 working days before this deadline. This is very similar to the policies of commercial business.
Unauthorised – the Debtor is disputing giving their authority for the collection/ disputing the Mandate.
This can be requested within 13 months of the settlement date. Settlement of the refund must occur no later than 30 calendar days plus four working days after this deadline.
What happens to Refund or Return requests after the deadline?
It is the responsibility of the Creditors bank to ensure Refunds and Returns presented after a scheme deadline are not processed by the them or the Clearing Service Mechanism (CSM) and, that the Debtor bank are informed of this.
Refunds, Returns, and Rejects must all be cleared and settled with the same CSM used for the initial collection, unless otherwise agreed between Banks concerned. CSMs in turn must have the ability to process Refunds, Returns, and Rejects relating to the scheme.