Who provides the refund under the SEPA Direct Debit scheme?
The Debtor’s Bank – regardless of whether Creditor has already provided the refund.
The refund should only come from 1 party – why? To help avoid double refunds and confusion within payment cycle between participants.
The Debtor bank is only concerned with its agreement with its customer (the Debtor) and obligations under the scheme. With that said, its recommended that the Creditor allows the Debtor bank to always be the refunding party with regards to a SEPA Direct Debit.
Guaranteed Refunds (the Debtor’s ‘Refund Right’) have an 8 week time limit under the Core Scheme – from the date the collection took place.
If the collection is deemed ‘unauthorised’, the Debtor Bank is obliged to immediately Refund the Debtor.
The rights of the Debtor are fully explained in a statement available from their Debtor bank.