Direct debit - what is it? Withdrawing funds without the order of the account holder

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Delays are one of the main reasons why money will be debited from a client's account without his permission. This is a common practice, the legality of which is still actively debated. In some cases, such actions may be provided for in the contract in advance or may be the result of the bank's execution of a court decision. This is rarely practiced. However, many situations can only be resolved in this way, which makes the write-off tool the only possible way out of this situation.

Debit without acceptance - what is it?

In fact, such actions represent the transfer of money from a bank client's account in favor of the same bank or any other organization, individual, government agencies, and so on. The reason, as mentioned above, most often is the right provided in advance in the contract, but sometimes you will also have to seek a court decision. In any case, all this happens without the consent, and sometimes without the knowledge of the account holder, which is already fraud if there are no good enough reasons.

Reasons

Reason most oftenquite banal. They can be arrears on bank loans, unpaid alimony, fines, taxes, and so on. Naturally, people are different, some simply do not want or cannot pay such mandatory payments. In fairness, it should be noted that banks, the court and other interested parties first of all try to agree in a good way. And only then, when it becomes clearly clear that the debtor does not compromise and refuses to negotiate, more stringent measures follow.

Debit under contract

Usually, the agreement for opening a current or card account provides in advance the right to direct debit. What does this mean? The fact that the bank at any time can independently, without additional permission from the account holder, withdraw money and send it in the right direction. Such a system can even be beneficial, because not everyone has the ability to make payments on time, and such a solution will allow a person to allow the bank to perform the necessary actions on his behalf at the right time. However, as a rule, such a direct debit, for which the client has written an application in advance, is carried out in especially unpleasant situations described above. It should be noted that usually the bank not only provides for such a right, but also stipulates the situations in which the specified clause of the agreement may come into force. For example, only after an increase in debt over the agreed amount. Or after 5 days have passed from the moment when it was necessary to make a payment. SoFurther. There can be a huge number of options, and they all depend on both the bank and the client, the loan and many other indicators.

Debit by court order

This is a more serious solution, in which direct debiting is performed. What it is has already been described above, but in short, after the state authorities have determined the punishment, a document comes into force, according to which the bank has the right and even the obligation to debit the client's account and send them to the specified in the decision details. This happens when alimony is not paid for a long period, violations of laws, the punishment for which is expressed in monetary terms, and so on. In fact, in such a situation, a person will be to blame himself, since, having not agreed to voluntarily fulfill certain requirements or duties, he will have to pay for it out of his own pocket. If he agreed, he would still lose money, but it would be at least a balanced and thoughtful decision, the background of which would absolutely not have to be brought to court.

Other types of charges

In principle, the above are two main scenarios in which a banking organization has the ability to touch a client's account without permission. All other options will most often be fraud in one way or another. If there is no reason to touch the account, but it is nevertheless done, then there is a serious violation that threatens criminalliability on a par with theft or robbery. Bank employees need to be very careful when such events occur. It is recommended to check the legitimacy of actions and the correctness of documents several times before starting an indisputable write-off of funds. In case of detection of the slightest inaccuracies or incomprehensible points, the management and security service should be immediately notified. Otherwise, it can be very bad. Some structures specifically conduct such checks to determine how attentive or responsible bank employees are.

Debiting procedure

The whole procedure for direct debiting can be divided into several main stages.

1. The first stage is the occurrence of the cause. For example, this may be a debt that the client refuses to repay, or a long-term non-payment of alimony, fines, and the like.
2. The next step is legitimacy. Options are already possible here, ranging from the availability of a similar opportunity provided for by the contract, or a separate court decision.
3. After this is sorted out, the permission of the head of the banking organization in which the debtor opened an account with money is required. This permission is issued in writing and sent to the head of the relevant structural unit.
4. He, in turn, determines the employee who will actually carry out the decision (management or court). Banking is just such a system.subordination.
5. A bank employee performs all required actions, strictly following what is written in the title document.

In fact, if everything is done correctly, then the responsibility will be solely on the debtor. If mistakes are made, then the person who made them will be responsible. For example, the bank's management, if it decided to write off without appropriate reasons, the head of the department, who independently gave instructions, without the consent of superiors, or even an employee, if he performed the operation without documents, incorrectly, or at all of his own free will.

Right of direct debit

Disputes about whether such actions are consistent with the constitution still do not subside. On the one hand, it seems like there are separate agreements or a court decision. On the other hand, all this can, if desired, be classified as fraud and gross violation. This is the main problem that the bank faces when it is necessary to carry out a direct debit. What does this mean? Everything is quite simple and clear here. If a person from whose account money was lost for reasons unknown to him can prove that it was indeed illegal, the bank will be forced to return these funds. In some cases, you will also have to pay a fine, which is unlikely to please anyone. Financial institutions often walk on the edge of legality. Suffice it to recall the services of the same collectors, which seem to be officially operating, but the methods by whichthey enjoy, most often far from legal.

Result

In general, debiting funds from a client's account without their permission is a very dangerous process that must be carried out strictly in accordance with laws, regulations, agreements, and so on. Any mistakes or violations at this moment are simply unacceptable, as they can have extremely adverse and long-term consequences. Banking in this regard is extremely negative about the very need to write off. If there is another way to solve the problem, the financial institution will prefer it, even if it is less profitable and more time-consuming.