Open Letter addresses period from 2 November 2009 through 1 November 2010
Agreement on the one-year grace-period regarding the reachability of branches operated by multi-country banks is an important initiative to encourage early take-up of the Direct Debit Schemes to the benefit of bank customers across . It is important to note, however, that the guidance provided in the related open letter issued by the in July 2009 addresses only the period from 2 November 2009 through 1 November 2010.
The European Parliament and the European Council recently approved a new Regulation on cross-border payments in euro that will come into force on 1 November 2009. This Regulation includes provisions on mandatory reachability for Direct Debit collections in the euro area from 1 November 2010 onwards. To clarify the obligations of SDD Scheme Participants in light of the new Regulation on cross-border payments in euro, the plans to issue a further open letter to the community of prospective SDD scheme participants by end August this year.
Banks are encouraged to provide broad reach for Direct Debit as of launch date
To ensure broadest possible reach of the Direct Debit Schemes banks are encouraged to move ahead and to adhere early on. Deadline for receipt of applications from institutions wishing to offer Direct Debit services as of 2 November 2009 is 4 September 2009 for adherence to the Core Direct Debit Scheme and 11 September 2009 for adherence to the Business to Business Direct Debit Scheme.
Gerard Hartsink is the Chair of the .
If you would like to comment on this article, please identify yourself with your first and last name. Your name will appear next to your comment. Email addresses will not be published. Please note that by accessing or contributing to the discussion you agree to abide by the EPC website conditions of use.