Direct debits from your bank account can be reversed within 56 days from November 1, 2009, until then they must be refunded within 30 days. The NVB has implemented this to give consumers longer to have direct debits refunded. Most monthly payments are debited by direct debit. The advantage of this is that you don’t have to worry about it, and you can’t forget it. Automatic debiting is often cheaper than paying via giro collection form. The institution to be collected does not have to incur any costs to send an acceptance giro, and they collect the amount sooner because they can choose the moment to collect. The major disadvantage of direct debit is that there is often no overview. The amounts are debited without the account holder giving instructions each time. Amounts are also often collected incorrectly. Direct debits could be refunded within 30 days, but the period has now become 56 days.
What is a direct debit?
A direct debit is a simple way to pay. With a direct debit authorization you give a company or institution permission to debit an amount from your account. This can be a one-off payment or a continuous (monthly) payment. The most common direct debits are the standing authorization and the one-off authorization.
Reversal of a direct debit
There are different types of direct debit, where the refund arrangements also differ. Refunds are not possible in all cases. Goods are often purchased by issuing a one-time authorization to collect the amount due. If this amount could be refunded, the seller would still miss payment for the goods or services delivered. The collections can be classified as follows:
- one-time direct debit
- one-time direct debit action
- general recurrent direct debit
- continuous collection of games of chance
Refund one-time direct debit
Regular one-off direct debit authorizations can be reversed to a limited extent. The amount can be refunded within five days after collection, but not after that. These could lead to a legitimate payment being withdrawn despite the fact that the recipient of the money has provided goods or services. A one-off collection campaign usually relates to donations that must be transferred to charities as part of a large fundraising campaign. These amounts can be refunded through your own bank. If a collection has been carried out unlawfully (without authorization), the amount can be reclaimed within one year.
Reversal of recurring direct debit
For a direct debit that falls under a general continuous direct debit, you have the right to have the amount collected refunded within 30 calendar days (from November 1, 2009, this will be 56 days) (= refund right). The continuous direct debit for games of chance has a refund period of five working days. This is to prevent participants from having the amount refunded if they have not won anything. Lotteries will also ensure that they have collected the amount due more than five days before the draw. my view on