Regulatory Alerts2021-12-27
Debits by Authorization
The Supervisor of Banks issued this directive to regulate the system of payments through debits by authorization, primarily to preserve customer rights. It mandates that banks verify beneficiary identity, obtain written customer consent, and provide clear information regarding debit details and cancellation rights. The document further establishes procedures for transferring authorizations between banks and defines the conditions under which customers may cancel specific debits or entire authorizations.
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