The European Payments Council publishes a clarification paper on the change of creditor or creditor reference party. The purpose of this document is to clarify whether a new Direct Debit (SDD) mandate is required in case of a change of the creditor or of the creditor reference party. This may occur in case of a merger of two companies previously using the SDD payment instrument in the role of a creditor. Another situation is when the party on whose behalf the creditor collects the funds via SDD has changed.
The paper highlights that in the event of a change of the creditor, the applicable law that rules the contractual or other relationship between the creditor and the debtor will determine the implications of such change for the existing SDD mandate.
The document further clarifies that any change of the creditor reference party does not impact the validity of the mandate and does not require the amendment of a mandate or a new mandate.
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