Concern over direct debit payment as Brexit looms

Leitrim Observer Reporter

Reporter:

Leitrim Observer Reporter

Concern over direct debit payment as Brexit looms

Sinn Féin MEP Chris MacManus has said he is greatly concerned that some direct debits payments will not be processed by banks in January as a result of Brexit. He said payments from Ireland to British providers could be declined by Irish banks.
 
MacManus said, “In October I raised with the EU Commission directly the issue of British payment providers not being ready for the additional obligations that will be placed on them from the 1st of January as a non-EEA country. The Commission acknowledged to me that there was an issue and put the onus on the providers to put in place the necessary work.”
 
“Now, in a parliamentary reply to my colleague Louise O’Reilly TD, the Central Bank haver made it clear this issue remains stating: “To date action has been taken by most businesses and PSPs to address the issue, and while the risk in terms of value and volume of potentially rejected payments has significantly reduced, there remains residual risk that a number of payments may be rejected from 1 January 2021 due to non-compliance with the Funds Transfer Regulation and the SEPA scheme rulebook.”
 
The Midlands Northwest MEP concluded by insisting Irish customers must be protected, “Irish businesses should not in any way suffer for the lack of preparedness by these British based providers. These providers need to get their act together and guarantee that they will be ready to fulfil all their obligations by 1st January. I understand up to 20% of these payments to British providers are still facing uncertainty.”
 
“It may be necessary for the Central Bank however to give some leeway for a short time to protect Irish consumers from having, through no fault of their own, their regular payments declined. The Commission should stand ready to signal this leeway would be tolerated in the exceptional circumstances and to protect Irish businesses.” 

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