What is a direct debit guarantee?

The direct debit warranty is a type of financial contract that ensures that any payments made by consumers by direct debit from the bank account are processed under the terms of this Agreement. The conditions of this type of warranty often relate to common problems that may occur in direct debt transaction, and basically confirm that the payer's bank will cooperate with the recipient's bank to ensure that any transaction problems are resolved. The exact provisions contained in the framework of direct debit warranty will vary somewhat, as these provisions must comply with the banking regulations related to the country where the bank is.

The idea of ​​a direct debit warranty is to protect the interests of all parties affected in the transaction. This means that the recipient must take proper steps to announce the payer if something about a direct debt transaction changes, and this notification takes place in advance. For example, if the date for DebitNumber of working days before the change actually. This requirement allows the payer to organize their finances to ensure that the funds to cover the debit are available on the new date of payment.

Direct debit conditions also protect the payer if the recipient causes a mistake that results in a debit that is more than a real debt. This provision usually allows the payer to raise a refund, either for the entire amount of the transaction or a partial refund that represents the difference between the actual amount and the amount of the debit. This provision helps to minimize the inconvenience that the payer encounters, and in some cases allows you to fix the error before any other transaction of the Lafe are adversely affected.

Many forms of direct debitHe announces in writing that the debit is no longer allowed. Consumers should also make it a point to announce that on a certain date the payer's bank was recommended that it no longer meant debit in the payer's account, allowing the arrangement from both ends. Given that Banking laws are somewhat different from one jurisdiction to the next, you will take the time to read direct debit warranty provided by the bank, facilitate what rights and obligations are provided to the Bank's customer and what processes need to be observed to deal with some type of error or inconsistency.