The Single European Payments Area (or SEPA) is an EU initiative that will change the way euro denominated electronic payments are processed across Europe. It comes into full effect on the 1st of February 2014. It will mean that users of payment services can make and receive payments across 32 countries using common standards creating a more efficient borderless payments area.

Implications for Consumers

Consumers will enjoy greater protection and refund rights around direct debit payments. In particular, the SEPA Direct Debit Core Scheme Rules and the SEPA Regulation 260-2012 provides that from the 1st of February 2014 a Consumer:-

1. will have a no questions asked refund on direct debits up to 8 weeks from the date the debit is posted;

2. will be able to obtain a refund for an un-authorised transaction up to 13 months from the date the debit is posted;

3. may limit the amount and frequency of a direct debit;

4. may instruct their bank to only accept direct debits from specific creditors;

5. may create “blacklists” of Creditors to whom they will not accept direct debits;

6. may block SEPA direct debits; and

7. may refuse a SEPA direct debit.

Consumers will also have, access to clear and concise information with regard to their rights and obligations, and a notification service resulting in greater overall transparency.

Niall Colgan is a practising solicitor with over 10 years experience based in Cork city.

Tags: SEPA

Jun 26, 13