Reversing is the reversal of a direct debit. The account holder can do this himself, by having the direct debit reversed. But it also happens automatically by the bank, when there is not enough money in the account. Sometimes this takes a few days.
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When to cancel?
With a direct debit, an account holder has the right to refund the money. It does not matter whether the collection was justified or not. Normally you cancel an amount within 8 weeks after the collection. A one-off direct debit or a direct debit for games of chance, such as a lottery, cannot be reversed. A cancellation does not always mean that your payment obligation expires. In most cases, the collecting party will still contact you or send you a payment reminder.
Refund period
Normally there is a refund period of 8 weeks. If you as an account holder do not agree with the direct debit, you can do so within this period, without stating reasons. If there is not enough money in your account, the bank will transfer the direct debit back to your account after a few days. Your payment obligation remains in effect.
I want my money back
If you do not agree with a direct debit from your account, you can have it reversed. This can be done easily via internet banking or your bank’s app. Is that not possible or has the refund period already expired? Then you can contact the bank. This is possible up to 13 months after the collection. The bank will then contact the collecting party’s bank via the ‘Reporting Unfair Collection‘ procedure. That bank checks whether a valid authorization has been obtained. Isn’t that so? Then the money will be refunded to your account.
When can I not cancel?
A reversal is not possible when the direct debit has been made for games of chance, such as a lottery. Even a one-off direct debit cannot be reversed.
My debtor has reversed a direct debit
When your debtor has reversed your direct debit, you first check whether your direct debit was correct. If so, send your debtor a payment reminder as soon as possible. Perhaps there was not enough balance on the account or the direct debit did not come out for a while. But in the end, the debtor has to pay your invoice.