Circular OPASI 2 - 160. RUNOR 1 - 207. Automatic Debits. Reversal of Operations. Complementary Rules. Updated Text

BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMUNICACION " A " 2508 30/12/96 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 160.
RUNOR 1 - 207.
Automatic Debits. Reversal of operations. Complementary rules. Updated text

We address you to inform you that this Institution adopted the following resolution:
"1. Replace the second paragraph of the resolution referred to in Communication "A" 2470, with the following:
"Furthermore, in the agreements that financial entities conclude with their clients for adherence to automatic debit systems, a clause must be included that provides for the possibility that the client orders the suspension of a debit up to the previous business day -inclusive- to the date of maturity and the possibility to reverse debits for the total of each operation, upon express instruction from the client, within 30 calendar days counted from the date of the debit. In cases where the amount of the requested reversal does not exceed $ 750.- the refund will be made within 48 business hours following the date on which the entity receives the client's instruction. In the event that it exceeds $ 750.- and provided that the company originating the debit does not oppose the reversal for having made effective the billing difference directly, the refund to the bank account will be fulfilled within 96 business hours of receiving the instruction."
2. Defer until 1.4.97 the entry into force of the dis-
positions disseminated by Communication "A" 2470, with the modifications established in point 1. of the present resolution."

In attachment we send you the updated text of the provisions in force in this matter. We greet you very respectfully. BANCO CENTRAL DE LA REPUBLICA ARGENTINA Juan Carlos Isi Alfredo A. Besio Deputy Manager of Standards Manager of Standards for for Financial Entities Financial Entities

ANNEX

+----------+-------------------------------+-------------+ I B.C.R.A. I UPDATED TEXT OF THE NOR- I Annex I MORE ON AUTOMATIC DEBITS I to the I Y REVERSAL OF OPERATIONS ICom. "A" 2508I +----------+-------------------------------+-------------+

• Establish that, from 1.4.97, only the automatic debit mechanism
  to account (savings and/or checking account) will be admitted for the payment of taxes, fees, contributions and levies, invoices for public or private services, credit card statements, etc. when the client's knowledge of the amount to be debited is assured with a minimum advance notice of 5 business days with respect to the date fixed for the debit. Furthermore, in the agreements that financial entities conclude with their clients for adherence to systems of automatic debit, a clause must be included that provides for the possibility that the client orders the suspension of a debit up to the previous business day -inclusive- to the maturity date and the possibility of reversing debits for the total of each operation, upon an express instruction from the client, within 30 days calendar counted from the date of the debit. In the cases where the amount of the requested reversal does not exceed $750 the refund will be made within 48 business hours following the date on which the entity receives the client's instruction. In the event of exceeding $750 and provided that the company originating the debit does not oppose the reversal for having made effective the billing difference directly, the refund to the account will be fulfilled within 96 business hours of receiving the instruction. When it comes to credit card settlements of open systems, in place of the aforementioned reversal procedure, entities must have implemented mechanisms that allow users to manage through them the reversal of coupons included in the settlements and the reimbursement of the relevant amounts that have been debited. The aforementioned provisions will be applied ex officio, from 1.4.97, to existing automatic debit contracts, a matter that must be informed to the clients adhering to that system. The client may formalize their adherence to the system of automatic debit through the financial entity in which they maintain their account or through the service provider company, tax collection agency, etc. provided that, in the pertinent aspects, the requirements indicated above are observed. The same option will apply to manifest the disaffection or cancellation of a service from this system.

The present provisions apply exclusively to debit operations linked to the service of collection on behalf of third parties, for which reason debits derived from authorizations that clients grant for operations inherent to the entity (loan payments, safe deposit box rentals, commissions, etc.) are excluded. Entities must provide in the agreements they formulate with entities adhering to the automatic debit system, the necessary operational mechanisms to comply with the terms of this regime. ---