Overdue debt is one of the main reasons that money will be debited from the client’s account without his permission. This is a common practice, the validity of which is still being actively discussed. In some cases, such actions may be provided for by the contract in advance or may result from the bank's implementation of a court decision. This is rarely practiced. Nevertheless, many situations can only be solved in this way, which makes the cancellation tool the only possible way out of this situation.
Direct debit - 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, state bodies, and so on. The reason, as mentioned above, most often becomes the law stipulated in the contract in advance, but sometimes it will also be necessary to seek a court decision. In any case, all this happens without consent, and sometimes without the knowledge of the account holder, which is already fraud if there are no sufficiently serious reasons.
Causes
The reasons are often quite commonplace. They may be overdue debt on loans at the bank, unpaid child support, fines, taxes and so on. Naturally, people are different, some simply do not want or cannot pay such obligatory payments. In fairness, it should be noted that banks, the court and other interested parties are first of all trying 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 are followed.
Contract write-off
Typically, a contract to open a current or card account provides in advance the right to direct debiting. What does that mean? The fact that the bank at any time can independently, without the additional permission of 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 decision 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 write-off, the application for which the client wrote in advance, is performed in particularly unpleasant situations described above. It should be noted that usually the bank not only provides for such a right, but also stipulates 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 since the time when you had to make the payment. Etc. There can be a huge number of options, and all of them depend on the bank as well as on the client, loan and many other indicators.
Written off by court order
This is a more serious decision, in which a direct debit is made. What this is, it has already been said above, but in short, after the government has definitely been punished, the document comes into force, according to which the bank has the right and is even obliged to write off money from the client’s account and send it according to the decision requisites. This happens when non-payment of alimony for a long time, violations of laws, punishment for which is expressed in monetary terms, and so on. In fact, in such a situation, the person will be to blame himself, because, not agreeing to voluntarily fulfill certain requirements or obligations, he will have to forcefully pay for it from 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 variants of events 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 still done, then there is a serious violation that threatens with criminal liability along with theft or robbery. Bank employees need to be very careful when such events occur. It is recommended that you verify the legitimacy of actions and the correctness of documents several times before starting an indisputable charge-off. In case of the slightest inaccuracies or incomprehensible moments, you should immediately notify the management and security service. Otherwise it can be very bad. Some entities specifically conduct such checks to determine how attentive or responsible bank employees are.
Debit Procedure
The whole order of direct debit can be divided into several main stages.
- The first stage is the occurrence of a cause. For example, it may be arrears that the client refuses to pay, or a long non-payment of alimony, fines and the like.
- The next step is legality. There are already possible options, starting from the availability of a similar opportunity provided by the contract, or a separate court decision.
- Once this is dealt with, permission is required from the head of the banking organization in which the debtor opened an account in which there is money. This permission is issued in writing and sent to the head of the relevant structural unit.
- He, in turn, determines the employee who will actually carry out the decision (management or court). Banking implies just such a system of subordination.
- The bank employee performs all the 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 committed them will already 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 the order, without the consent of the superior persons, or even the employee, if he performed the operation without documents, incorrectly or even at his own request.
Direct debit right
The debate about whether such actions are consistent with the constitution has not yet subsided. 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 precisely the main problem that the bank faces when it is necessary to execute direct debit. What does this mean? Everything is quite simple and clear here. If a person from whose account, for reasons unknown to him, has lost money, will be able to prove that this was indeed illegal, the bank will be forced to return these funds. In some cases, you also have to pay a fine, which is unlikely to make anyone happy. Financial institutions often go to the brink of legality. It is enough to recall the services of the same collectors, which seem to be officially acting, but the methods they use are often far from legal.
Total
In general, debiting funds from a client’s account without his permission is a very dangerous process that must be carried out strictly in accordance with laws, regulations, agreements, and so on. Any errors 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.