PSD2 – New Article 67 risks undermining consumer’s unconditional refun...

PSD2 – New Article 67 risks undermining consumer’s unconditional refund right for direct debits

14 April 14

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On 24 July 2013 the European Commission (the Commission) published its proposal for the revised Payment Services Directive (). The proposed remains subject to review and adoption by the European Union (EU) co-legislators, i.e. the European Parliament and the Council of the EU. (The Council of the EU is the EU institution where the EU Member States’ government representatives sit, i.e. the ministers of each EU Member State with responsibility for a given policy area.)

will continue to be of particular relevance with respect to Direct Debit (SDD) services due to the fact that it defines common rules for the authorisation and the refund of direct debits. The blog published on 15 April 2014 (see ‘related links’ below) details the key considerations of the European Payments Council () regarding the payer’s direct debit refund rights included within the proposed revised Directive. The sees a pressing need for a review of the proposed new Article 67, (entitled ‘Refunds for payment transactions initiated by or through a payee’), regarding the details of the unconditional refund right for direct debits. In the view of the , the Commission’s proposal for risks undermining the consumer’s unconditional refund right for direct debits included with the Scheme developed by the in close dialogue with all stakeholders.

The calls on the members of the European Parliament to be elected in May 2014 and the EU government ministers represented in the Council of the EU to further review the new Article 67 included in the Commission’s proposal for . It is now the responsibility of the EU co-legislators to ensure that consumers making SDD payments can continue to rely on the ‘no-questions-asked’ refund right provided with the Scheme in a consistent fashion across except if otherwise agreed between the consumer and the payee through a specific mandate.

In addition, this blog updates on the state of play of and next steps in the legislative process leading to the adoption of

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