Revoke a direct debit: this is how it works

Revoke debit note: This is how it works

The debit is a safe, practical and popular payment method – After all, it has many advantages for both the payee and the debtor. If, despite the high security of the procedure, an incorrect direct debit occurs, you should know how best to react – simply follow these tips!

How the direct debit procedure works?

The direct debit procedure is a electronic payment method. With the so-called direct debit mandate, the debtor authorizes the creditor to debit the debt from his account. Since 2009, the SEPA Direct Debit, for which the IBAN is required – this enables the uncomplicated use of the direct debit procedure in the euro zone.

You can Revoke SEPA direct debit mandate at any time. Without revocation, it is valid for an unlimited period – with one restriction: If the creditor does not collect any amount for more than 36 months, the mandate expires. In this case it is necessary to issue it again if necessary.

The use of the direct debit procedure is safe for both the recipient and the debtor: each time a direct debit is made, the the mandate reference and creditor identification number visible, so that it can be traced who debited the money.

For many users, the decisive factor is that the direct debit procedure is convenient: If the money is collected, you do not have to think about the transfer yourself and risk no delay in payment. The direct debit procedure is particularly suitable when – in contrast to standing orders – the amount varies. Moreover, the debit of the money can be planned well, because the payee is obliged to inform you of the due date of the direct debit 14 days in advance.

What to do in the event of incorrect direct debit collection?

The direct debit procedure therefore has many advantages. However, it carries the risk that by a Error of the creditor debited too much or too frequently. However, even in such a case, the direct debit procedure is very safe due to extensive consumer protection: you can cancel a debit already made have the direct debit reversed and do not need to wait for the creditor to transfer back the incorrectly debited money.

Fortunately rare, but even more unpleasant are direct debits executed for which no authorization was ever issued. Should you ever be affected by such a Fraud case If the debtor is affected, it is good to know what to do. Then succeed the Reversal of an unauthorized direct debit usually quick and easy.

Return debit note: Be sure to observe the deadline

In order to be able to revoke a direct debit that has already been made, certain deadlines must be. After the debit you have Eight weeks time, request a refund – the money is then credited back to your account. This can be done without any problems: It is not necessary to give a reason and the Reversal of the direct debit is free of charge. So it is only important that you regularly check your account movements in order to be able to react in time in case of an eventuality.

Should there actually be unauthorized direct debit if you have not given the creditor a mandate to collect the money or if you have revoked a direct debit mandate, you can still collect the money up to 13 months revoke the SEPA direct debit after it has been debited.

The timely objection leads to an return a direct debit. The payee then contains the notification that the direct debit was presented but not executed due to your objection. The money already debited will be credited to your account.

Do the direct debit return incur costs?

Basically arise no costs by returning the direct debit itself. However Bank charges incurred – these are borne by the party at fault for the return. As a rule, the fee for this is a few euros; the exact amounts banks determine individually.

In the following cases the other party bears the costs:

  • The debit is unauthorized – the creditor did not have a mandate for it.
  • Your creditor was charged for collection based on a mandate, but he debited too much or too often.

If the payee is unable to honor a direct debit, this may also be the case self-inflicted:

  • The account from which the direct debit is to be made is not covered.
  • The creditor has been given an account that does not exist or no longer exists.
  • The account specified is a savings account from which no direct debit can be made.
  • The debtor has revoked a direct debit that subsequently turns out to be justified.

To avoid incurring costs in the form of bank charges for returning direct debits, you should Make sure your account has sufficient funds. This is helped by the fact that the due date of the direct debit is known in advance. If you provide a creditor with your account details, you should make sure that it is a valid current account. Finally, before revoking a direct debit, you should always check whether it is actually an error or an unauthorized collection – How to avoid fees for a returned direct debit because it subsequently turns out to be justified.

If you observe the deadlines for returned direct debits and the tips for returning direct debits, there is nothing to prevent you from using the direct debit procedure without worries!

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