Direct Debit Indemnity Claim Advice
What is an Indemnity Claim?
An Indemnity Claim is the notification of any payments which are being disputed by your payer and these can be received at any time. One of the advantages of Direct Debit is that payers are protected by the Direct Debit Guarantee, this encourages them to sign-up using this payment method over others. The Direct Debit Guarantee is unlimited as to time and amount and paying banks will accept the word of the payer concerning any errors made and raise an Indemnity Claim.The payments are automatically returned to the Payer by their bank and they usually appear on the Service User's account within approximately 14 working days. These are automatically applied to the SmartDebit system.
How am I notified of an Indemnity Claim report?
We will send you an e-mail to advise you that you have an DDICA to review. A link within this e-mail will take you through to the reports section on SmartDebit Pulse. You are then given the option of opening this as either a CSV or XML (CSV is generally easier to read).
What does an DDICA look like?
If you open your DDICA report as a CSV, the data will be depicted as above. The reason codes meanings are given to you within the report but the most common of these are as follows:
- Amount and/or date of Direct Debit differ from Advance Notice (1)
- No Instruction held (5)
- Signature on DDI is fraudulent or not in accordance with account authorised signature(s) (6)
Can I counterclaim an Indemnity?
The Direct Debit Guarantee results in paying banks accepting the word of the payer concerning any errors made and they will therefore raise an Indemnity Claim on the Payer's behalf. In certain cases, the Service User (yourself) is able to either counter claim or challenge the Indemnity if you believe this to be inaccurate.
The first step of pursuing a counter-claim or challenge is to contact your payer directly, invoking your Terms and Conditions and attempting to resolve the matter directly with your Payer who is able to cancel the Indemnity Claim with their bank.
If this cannot be resolved directly with your payer, you can contact a member of the SmartDebit Customer Service team by telephone on 01276 851820 or email email@example.com and they will be able to provide further assistance.
- The best way to protect yourself against Indemnity Claims is to take the following steps:
- Ensure you keep a record of all signed Direct Debit Instructions (either the paper copy or a scanned digital copy) and any documentation relaying your terms and conditions.
- Always Ensure Advance Notice Emails are sent to your payers (whether this is by yourselves or SmartDebit)