Valid Indemnity Claims
There are eight valid reasons underwhich a payer can request a Direct Debit refund. All of the reasons are linked to the payer’s direct debit collection but can refer to an existing or previously ‘active’ direct debit on their account.
The reasons follow a strict criteria, based around failings in the collection or administration of a Direct Debit by the Service User or Payers Bank. The payer, when approaching their bank, makes a ‘refund’ request, as covered by the Direct Debit Guarantee. If the payer’s reason is deemed as valid, they are then provided with a full and immediate refund of the total value of the disputed collection/s by the Payer’s bank.
An indemnity claim must be raised for the full amount of the original Direct Debit collected. It cannot be raised for partial amounts. In most cases, the claim is raised by the payers bank but Services Users are also allowed to raise indemnity claims on the payer’s behalf. In addition, it is possible for a payer to claim for ‘consequential loss’, however this will not be refunded to the payer until the paying bank has been refunded for such by the service user.