COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 06.06.1995 
COM(95) 264 final 
94/0242 (COD) 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
ON EU CREDIT TRANSFERS 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

AMENDED PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL 
DIRECTIVE ON EU CREDIT TRANSFERS 
Explanatory Memorandum 
1. BACKGROUND 
On 18 November 1994, the Commission adopted a proposal for a European 
Parliament and Council directive on cross-border credit transfers1. This was sent to 
the Council by letter dated 18 November 1994. The Council subsequently forwarded 
this text to Parliament, to the European Monetary Institute and the Economic and 
Social Committee. In January 1995, it began its own examination of the proposal. 
2. OPINION OF THE EUROPEAN MONETARY INSTITUTE AND THE ECONOMIC AND 
SOCIAL COMMITTEE 
The European Monetary Institute (EMI) rendered its opinion on the Commission 
proposal on 20 March 1995. In particular, it called for an exclusion of large value 
transfers as well as transfers in third country currencies from the scope of application 
of the proposed directive. It also suggested amendments of a technical nature 
pertaining to the regime of responsibilities in articles 5 to 7. 
The Economic and Social Committee adopted its opinion at its sitting on 1st 
June 1995. The modified proposal takes largely into account the suggestions of the 
Committee. 
3. OPINION OF THE EUROPEAN PARLIAMENT 
The European Parliament adopted the legislative resolution embodying its opinion on 
the Commission proposal at its sitting on 19 May 19952. 
Parliament's favourable opinion contained 21 amendments. The Commission accepted 
16 of these (Nos 1, 2, 4, 6, 7, 9-16, 19, 21-22) as proposed by Parliament. The 
Commission accepted partially a further 3 amendments (Nos 5, 18 and 28). 
Only two amendments (Nos 3 and 8) were rejected in their integrity by the 
Commission. The first relates to the limitation of the scope of application of the 
directive to credit transfers which do not exceed an amount equivalent to 50.000 
ECU. At this stage, the Commission is not fully convinced that the setting of a ceiling 
would not prejudice the objective of an appropriate level of protection of consumers 
and SMEs. The second relates to the definition of "completion". The Commission 
fears that the suggested use of the undefined term "receipt" would lead to legal 
uncertainty for the banking sector and it therefore prefers to maintain the original 
definition based on the concept of "acceptance". 
1 COM(94)436 final - 94/0242 COD, O.J. C360 of 17.12.1994, p. 13. 
2 
A 
4. COMMENTS ON AMENDMENTS 
Title and text 
"Cross-border credit transfer" is replaced by "EU credit transfer". 
Recital 3 
The recital reflects the amendment to the scope of application of the proposed 
directive (see comments to article 1(2)). 
Recital 10 bis (new) 
This new recital relates to a new article proposed by the E.P. (see article 7B new) on 
the availability of redress and complaints procedures. 
Article 1(2) 
The amended text integrates Parliament's and EMI's requests that the scope of 
application be limited to credit transfers in the currencies of the Member States and 
the ECU (corresponds to recital 3 above), thus reflecting the fact that transfers in 
third country currencies involve the participation of institutions in a third country 
performing the settlement function, to which Community legislation could not apply. 
The proposed directive, in line with section 2 above, remains applicable to credit 
transfers for any amount. 
Article 2(0 
The amended text now sets out the full wording of the definition of "force majeure", 
rather than simply referring to Council directive 90/314/EEC3. 
Article 2(m) 
A new definition of "interest", based on the rate which the institution would apply to 
its customer's account if that customer's account were overdrawn, is introduced. It is 
intended to enable customers to easily know which rate would be applicable for 
calculating interest. 
Article 2(q) 
The text now clarifies that an intermediary institution can only be one "which 
participates in the execution of an EU credit transfer". 
O.J. L158 of 23.06.1990, p. 59. 
Z 
Article 3 
The Parliament's request is to make the transparency requirements even more precise, 
to the benefit of customers. The text is amended accordingly (i.e. electronic 
transmission of information, more detail on charge components and reference to the 
exchange rate, clearer reference to redress and complaints procedures), without 
restricting the freedom of institutions to provide information in the way that they see 
fit. 
Article 4 
The text of article 4 is amended in the light of the modifications to article 3. 
Article 5. paragraph 1. introductive part 
The text has been simplified in the light of Parliament's request to more clearly lay 
down a default mandatory rule, where there is no specific agreement between the 
institution and its customer. 
Article 5. paragraph 2 
A new section is added, setting out an interbank mechanism under which the 
institution having compensated its customer for delayed execution recovers any 
interest thus paid from the institution responsible for the delay. 
Article 5. paragraph 3 
In accordance with the Parliament's request, this paragraph lays down in clearer terms 
the principle that interest is due by the beneficiary's institution to the beneficiary when 
it is late in making the funds available to the beneficiary. 
Article 6, paragraph 1 
In the light of the Parliament's request, the text clearly specifies that the authorisation 
to deduct charges has to be given by the originator. 
Article 6, paragraph 2 
The procedure for reimbursement of unauthorised deductions has been inverted, as 
requested by Parliament, while fully preserving the originator's choice. 
Article 7, paragraph 1 
The amended text introduces a number of changes, the most important being the 
shortening of the period set for reimbursement and the establishment of a clearer link 
with article 5. It is now specified that reimbursement shall be made 15 business days 
following the originator's request and stated that the originator's request may not be 
made before the expiry of the time scale laid down in article 5(1). 
^ 
Article 7. paragraph 2 
The amended text specifies that when the institution succeeds in recovering the funds 
and therefore to refund the originator, it is not obliged to reimburse the charges and 
interest accruing. This is in line with the intention of the initial Commission's 
proposal, although not specifically stated therein. 
Article 7. paragraph 3 
Following the modification introduced in Article 7(1), which now sets out an 
obligation to refund the first 10 000 ECU of a lost transfer, article 7(3) has been 
aligned to allow Member States to extend the refund obligation to transfers which 
exceed 10 000 ECU. 
Article 7A (new) 
Following the Parliament's request, this new article lays down the principle that 
institutions are not bound by the obligations in the directive in case of force majeure, 
but does not prejudice the fundamental goals which the proposed directive is set to 
pursue. The new article reflects the legal situation in the majority of the Member 
States. 
Article 7B (new) 
This new article aims at ensuring that appropriate redress and complaints procedures 
in the area of EU credit transfers are available in the Member States, thus fulfilling 
principle no 6 of Commission Recommendation 90/109/EEC4. 
O.J. L67 of 15.03.1990, p. 39. 
4 
Proposai for a Modified Proposal for a 
EUROPEAN PARLIAMENT AND 
COUNCIL DIRECTIVE 
on cross-border credit transfers EUROPEAN PARLIAMENT AND 
COUNCIL DIRECTIVE 
on EU credit transfers 
THE EUROPEAN PARLIAMENT AND THE 
COUNCIL OF THE EUROPEAN UNION, THE EUROPEAN PARLIAMENT AND THE 
COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the unchanged 
European Community, and in particular Article 
100a thereof, 
Having regard to the proposal from the unchanged 
Commission, 
Having regard to the opinion of the Economic unchanged 
and Social Committee, 
Having regard to the opinion of the European unchanged 
Monetary Institute, 
In accordance with the procedure laid down in unchanged 
Article 189b of the Treaty, 
Whereas the volume of remote cross-border 
payments is growing steadily as the completion of 
the internal market and the progressive move 
towards full economic and monetary union lead 
to greater trade flows and movement of people 
throughout the Community; whereas cross-
border credit transfers account for a substantial 
part of the volume and the value of remote cross-
border payments; 
Whereas it is of paramount importance for 
individuals and businesses to be able to make 
credit transfers rapidly, reliably, and cheaply from 
one part of the Community to another; whereas a 
market in which there is competition for cross-
border credit transfers should lead to improved 
services and reduced prices, Whereas the volume of remote cross-border 
payments is growing steadily as the completion 
of the internal market and the progressive move 
towards full economic and monetary union lead 
to greater trade flows and movement of people 
throughout the Community; whereas EU credit 
transfers account for a substantial part of the 
volume and the value of remote cross-border 
payments, 
Whereas it is of paramount importance for 
individuals and businesses to be able to make 
credit transfers rapidly, reliably, and cheaply 
from one part of the Community to another, 
whereas a market in which there is competition 
for EU credit transfers should lead to improved 
services and reduced prices, 
^> 
Whereas this Directive intends to follow up the 
progress towards the liberalization of capital 
movements reached during stage 1 of economic 
and monetary union; whereas it takes account of 
the purpose of facilitating the use of the ECU set 
out in the Treaty; whereas it is conceived as a 
step towards the progressive implementation of 
economic and monetary union, whereas its 
provisions should apply to credit transfers in any 
currency, including the ECU; Whereas this Directive intends to follow up the 
progress towards the liberalization of capital 
movements reached during stages 1 and 2 of 
Economic and Monetary Union; whereas it takes 
account of the purpose of facilitating the use of 
the ECU; whereas it is conceived as a step 
towards the progressive implementation of 
Economic and Monetary Union, whereas its 
provisions should apply to credit transfers in the 
currencies of the Member States and the ECU; 
Whereas this Directive is intended to implement 
one aspect of the programme of work drawn up 
by the Commission following its Green Paper 
"Making payments in the internal market", unchanged 
Whereas the Commission has recommended to 
Member State that the threshold below which 
cross-border payments should not have to be 
reported should be fixed at not less than ECU 
10 000, unchanged 
Whereas the Committee of Governors of the 
central banks of the Member States 
recommended that payment systems in all 
Member States should have a sound legal basis, 
whereas the Commission has set up a working 
group on the legal framework for cross-border 
payments, which consists of legal experts of 
governments and of the EMI; whereas this group 
has advised the Commission that the issues 
covered by this Directive may be dealt with 
separately from the systemic issues which remain 
under consideration, whereas it may be necessary 
to make a further proposal to cover these 
systemic issues, principally settlement finality, unchanged 
é 
Whereas the purpose of this Directive is to 
improve cross-border credit transfer services and 
thus assist the EMI in its task of promoting the 
efficiency of cross-border payments with a view 
to the preparation of the third stage of Economic 
and Monetary Union; Whereas the purpose of this Directive is to 
improve EU credit transfer services and thus 
assist the EMI in its task of promoting the 
efficiency of cross-border payments with a view 
to the preparation of the third stage of Economic 
and Monetary Union; 
Whereas, having regard to the third paragraph of 
Article 3b of the Treaty, this Directive lays down 
the minimum requirements needed to ensure an 
adequate level of customer information, whereas 
greater transparency is ultimately dependent on 
institutions' adherence to minimum performance 
requirements; whereas this Directive lays down 
the minimum performance requirements which 
institutions offering cross-border credit transfer 
services should adhere to; whereas this Directive 
fulfils the first, second, third, fourth and fifth 
principles set out in Commission 
Recommendation 90/109/EEC1; whereas it is 
without prejudice to Council Directive 
91/308/EEC of 10 June 1991 on prevention of 
the use of the financial system for the purpose of 
money laundering2; Whereas, having regard to the third paragraph of 
Article 3 b of the Treaty, this Directive lays down 
the minimum requirements needed to ensure an 
adequate level of customer information, whereas 
greater transparency is ultimately dependent on 
institutions' adherence to minimum performance 
requirements; whereas this Directive lays down 
the minimum performance requirements which 
institutions offering EU credit transfer services 
should adhere to, whereas this Directive fulfils 
the principles set out in Commission 
Recommendation 90/109/EEC1; whereas it is 
without prejudice to Council Directive 
91/308/EEC of 10 June 1991 on prevention of 
the use of the financial system for the purpose of 
money laundering2; 
Whereas the nature of cross-border credit 
transfers, being a series of operations involving 
institutions in different Member States, is such 
that a coordinated approach at Community level 
is appropriate and necessary, whereas a self-
regulatory approach has been attempted by the 
Commission by its Recommendation 
90/109/EEC, whereas this voluntary approach 
has not achieved the desired results; whereas a 
binding measure is therefore appropriate; Whereas the nature of EU credit transfers, being 
a series of operations involving institutions in 
different Member States, is such that a 
coordinated approach at Community level is 
appropriate and necessary, whereas a self-
regulatory approach has been attempted by the 
Commission by its Recommendation 
90/109/EEC; whereas this voluntary approach 
has not achieved the desired results; whereas a 
binding measure is therefore appropriate, 
1 O.J. No L67. 15.3.1990, p. 39. 
2 O.J No LI66, 28.6.1991, p. 77. 
Whereas this Directive should apply to credit 
transfers for any amount; whereas institutions 
should be under an obligation to refund in the 
case of a non-completed transfer, whereas the 
obligation to refund imposes a contingent liability 
on institutions which might, if the possibility were 
not given to exclude high-value transfers, have a 
prudential effect on the solvency requirement; 
whereas the possibility of derogation (by Member 
States and, if so exercised, by institutions) from 
this obligation should be provided only in the 
case of high-value payments of more than ECU 
10 000; whereas this threshold does not apply to 
any other Article of this Directive; Whereas this Directive should apply to EU credit 
transfers for any amount; whereas institutions 
should be under an obligation to refund in the 
case of a non-completed transfer; 
Whereas an independent complaints and redress 
procedure relating to the areas covered by the 
present directive should be available to afford 
the customer better protection; whereas such 
procedure should be established at Member 
State level, with the minimum cost, using 
existing procedures where available. 
Whereas the European Parliament, in its 
Resolution of 12 February 1993, called for a 
Council Directive to lay down rules in the area of 
transparency and performance of cross-border 
payments, unchanged 
Whereas the Economic and Social Committee, in 
its Opinion of 6 July 1994, stated a preference for 
a code of good conduct, whereas the 
Commission has previously pursued this 
approach; whereas the Economic and Social 
Committee advised that, if a directive were to be 
proposed, it should be limited to setting out a 
general framework; whereas this Directive 
follows this model, by allowing a large measure 
of freedom of contract, unchanged 
HAVE ADOPTED THIS DIRECTIVE: unchanged 
SECTION I - Scope and définitions SECTION I - Scope and definitions 
Article 1 
Scope Article 1 
Scope 
Member States shall apply the requirements 
of this Directive to credit institutions and to 
other institutions which supply credit 
transfer services to the public as part of their 
business. 
This Directive shall apply to credit transfers 
in any currency, including the ECU, and for 
any amount save where the derogation in 
Article 7(3) has been exercised. Member States shall apply the requirements 
of this Directive to credit institutions and to 
other institutions which supply EU credit 
transfer services to the public as part of 
their business. 
This Directive shall apply to EU credit 
transfers in the currencies of the Member 
States and the ECU, and for any amount. 
Article 2 
Definitions Article 2 
Definitions 
For the purpose of this Directive. unchanged 
(a) "credit institution" shall mean an institution unchanged 
as defined in Article I of Council Directive 
77/780/EEC3, for the purposes of this 
Directive, branches of credit institutions in 
different Member States are deemed to be 
separate institutions, 
(b) "other institution" shall mean any legal 
person, other than a credit institution, that 
supplies to the public, by way of business, 
credit transfer services, 
(c) "institution" shall mean a credit institution or 
other institution; 
O.J. NoL322, 17 12.1977, p. 30. (b) "other institution" shall mean any legal 
person, other than a credit institution, that 
supplies to the public, by way of business, 
EU credit transfer services; 
unchanged 
(d) "person" shall mean either a legal or a unchanged 
natural person, as the context may require, 
3 
(e) "payment" shall mean the transfer by an 
originator of a monetary claim on a party 
acceptable to the beneficiary, including cases 
where the originator and the beneficiary are 
the same person; 
(f) "cross-border payment" shall mean a 
payment by an originator whose account, 
from which the payment is made, is held by 
an institution or its branch in one Member 
State, to be made available to a beneficiary 
at an institution or its branch in another 
Member State; 
(g) "originator" shall mean a person that 
authorizes the making of a credit transfer to 
a beneficiary, 
(h) "beneficiary" shall mean the final recipient of 
a credit transfer, 
(i) "customer" shall mean the originator or the 
beneficiary, as the context may require, and 
may be one and the same person; 
(j) "payment order" shall mean an instruction in 
any form, given direct to an institution, to 
place at the disposal of a beneficiary a fixed 
or determinable amount of money, 
(k) "credit transfer" shall mean a cross-border 
payment, consisting of a series of operations 
beginning with the originator's payment 
order. The term includes any payment order 
issued by the originator's institution or any 
intermediary institution intended to carry 
out the originator's payment order, unchanged 
unchanged 
(g) "originator" shall mean a person that 
authorizes the making of a EU credit 
transfer to a beneficiary, 
(h) "beneficiary" shall mean the final recipient 
of a EU credit transfer, 
unchanged 
unchanged 
(k) "EU credit transfer" shall mean a cross-
border payment, consisting of a series of 
operations beginning with the originator's 
payment order. The term includes any 
payment order issued by the originator's 
institution or any intermediary institution 
intended to carry out the originator's 
payment order, 
A& 
(1) "force majeure" shall not include the (1) 
insolvency of an intermediary institution but 
shall otherwise have the meaning ascribed to 
it in indent (ii) of the second subparagraph 
of Article 4(6) of Council 'Directive 
90/314/EEC4; 
(m) "interest" shall mean the inter-bank offered 
rate, increased by two percentage points, in 
the relevant market for deposits in the 
currency of any given payment, calculated 
for the period of the delay; 
(n) "value date" shall mean the date on which 
the customer's account is debited (for 
originators) or credited (for beneficiaries) 
such date being that applied by the 
institution of the customer for the purpose 
of calculating interest (if any) on the account 
or assessing the availability of funds, where 
interest is not an appropriate criterion, 
(o) "acceptance" shall mean the acceptance by 
an institution of a payment order, upon 
fulfilment of the institution's conditions as to 
the availability of financial cover and the 
identification of the parties named in the 
payment order and any other pre-conditions 
agreed by the parties, 
(p) "completion" of a credit transfer shall mean 
acceptance by the beneficiary's institution; "force majeure" shall mean unusual and 
unforeseeable circumstances beyond the 
control of the party by whom it is pleaded, 
the consequences of which could not have 
been avoided even if all due care has been 
exercised (indent (ii) of the second 
subparagraph of Article 4(6) of Council 
Directive 90/314/EEC4-); 
(m) "interest" shall mean the rate which the 
institution would apply to its customer's 
account, for the relevant period, if that 
customer's account were then overdrawn: 
unchanged 
unchanged 
(p) "completion" of a EU credit transfer shall 
mean acceptance By the beneficiary's 
institution; 
(q) "intermediary institution" shall mean an 
institution which is neither that of the 
originator nor that of the beneficiary; 
(r) "business day" in relation to any particular 
institution shall mean a day, or part of a day, 
on which that institution is open for the 
processing of credit transfers (q) "intermediary institution" shall mean an 
institution which is neither that of the 
originator nor that of the beneficiary and 
which participates in the execution of an 
EU credit transfer; 
(r) "business day" in relation to any particular 
institution shall mean a day, or part of a 
day, on which that institution is open for 
the processing of EU credit transfers 
4 OJ. NoL158. 23.6.1990, p. 59. 
>1 
SECTION II - Transparency of conditions for 
credit transfers SECTION II - Transparency of conditions 
for EU credit transfers 
Article 3 
Information prior to a credit transfer (made 
or received) Article 3 
Information prior to a EU credit transfer 
(made or received) 
The institution shall supply its customers with 
clear written information about the services it 
provides to effect or receive credit transfers. This 
information shall include: 
an indication of the time needed for the funds 
to be credited to the account of the 
beneficiary's institution or to the beneficiary, as 
appropriate, 
the basis of the calculation of any commissions 
and charges payable by the customer to the 
institution. 
the value date, if any, applicable by the 
institution; 
a reference to the redress procedures available 
to the customer and the method of gaining 
access to them. The institution shall supply its customers with 
clear and readily comprehensible written 
information including, where appropriate by 
electronic means, about the services it provides 
to effect or receive EU credit transfers This 
information shall at least include: 
unchanged 
- the basis of the calculation, including the 
rates, of any commission fees and charges 
payable by the customer to the institution, 
including any taxes applied; 
- an indication of the exchange rate references 
used, 
unchanged 
a reference to the redress and complaints 
procedures available to the customer and the 
method of gaining access to them. 
JL 
Article 4 
Information subsequent to a credit transfer 
(made or received) Article 4 
Information subsequent to a EU credit 
transfer (made or received) 
The institution shall supply its customers with 
clear written information subsequent to their 
making or receiving a credit transfer. This 
information shall at least include 
a reference enabling its customer to identify 
the payment; 
the amount of any charges payable by its 
customer. Where the originator has authorized 
a deduction from the amount of a credit 
transfer, this fact and the original amount of 
the credit transfer should be stated by the 
beneficiary's bank to the beneficiary; 
the value date, if any, applied by the institution. The institution shall supply its customers with 
clear and readily comprehensible written 
information, including, where appropriate, by 
electronic means, subsequent to their making or 
receiving a EU credit transfer. This information 
shall at least include: 
unchanged 
the commission fees and charges payable by 
its customer. Where the originator has 
authorized a deduction from the amount of a 
EU credit transfer, this fact and the original 
amount of the EU credit transfer should be 
stated by the beneficiary's bank to the 
beneficiary, 
unchanged 
SECTION III - Minimum obligations of 
institutions in respect of credit transfers SECTION HI - Minimum obligations of 
institutions in respect of EU credit transfers 
Article 5 
Obligation to execute in good time Article 5 
Obligation to execute in good time 
Each institution having accepted a payment 
order shall execute the related credit transfer 
within the time scale agreed with the 
customer (or institution) making the 
payment order. In the absence of a specific 
agreement as to the time scale, the 
institution shall act soon enough to enable 
its published clear time scale to be achieved. 
Where there is neither a specific agreement 
nor an applicable published time scale, the 
following obligations shall apply: Each institution having accepted a payment 
order shall execute the related EU credit 
transfer within the time scale agreed with 
the customer (or institution) making the 
payment order. In the absence of a specific 
agreement, each institution shall act as fast 
as possible and, in that event, the following 
obligations shall apply: 
O 
the institution of the originator shall be 
responsible to the originator for ensuring that 
the credit transfer is completed no later than 
the end of the fifth business day following 
acceptance by it of the payment order from the 
originator, and 
the institution of the beneficiary shall be 
obliged to place the amount of the credit 
transfer at the disposal of the beneficiary, at 
the latest by the end of the business day 
following completion of the credit transfer. the institution of the originator shall be 
responsible to the originator for ensuring that 
the EU credit transfer is completed no later 
than the end of the fifth business day 
following acceptance by it of the payment 
order from the originator; and 
the institution of the beneficiary shall be 
obliged to place the amount of the EU credit 
transfer at the disposal of the beneficiary, at 
the latest by the end of the business day 
following completion of the EU credit 
transfer. 
The originator's institution shall compensate 
the originator by the payment of interest on 
the amount of the credit transfer where it is 
completed late, but shall not be liable for 
consequential losses under this Directive. 
No compensation shall be payable where the 
originator's bank can establish that the delay 
was attributable to the originator. The originator's institution shall 
compensate the originator by the payment 
of interest on the amount of the EU credit 
transfer where it is completed late, but shall 
not be liable for consequential losses under 
this Directive. Where the originator's 
institution is not responsible for the delay, it 
may claim from the institution that caused 
the delay the amount it was required to pay 
out as interest. No compensation shall be 
payable where the originator's bank can 
establish that the delay was attributable to 
the originator. 
In addition to the obligation of execution in 
paragraph 1, the beneficiary's institution 
shall compensate the beneficiary by the 
payment of interest on the amount of the 
credit transfer where it is late in being 
placed at the beneficiary's disposal. 3. In addition to the obligation of execution in 
paragraph 1, the beneficiary's institution 
shall compensate the beneficiary by the 
payment of interest on the amount of the 
EU credit transfer where it is late in placing 
such amount at the beneficiary's disposal. 
IH 
Article 6 
Obligation to execute in accordance with the 
instructions contained in the payment order Article 6 
Obligation to execute in accordance with the 
instructions contained in the payment order 
1. The originator's institution, any intermediary 
institution and the beneficiary's institution, 
once they have accepted the payment order, 
shall each be obliged to execute the related 
credit transfer for the full amount thereof 
unless authorized to make a deduction 
therefrom. Without prejudice to the duty not 
to deduct, the beneficiary's institution may, 
where appropriate, levy an additional charge 
on the beneficiary relating to the 
administration of his account. However, any 
such additional administrative charge shall 
not exceed the charge that would be made 
for a domestic credit transfer. 1. The originator's institution, any 
intermediary institution and the beneficiary's 
institution, once they have accepted the 
payment order, shall each be obliged to 
execute the related EU credit transfer for 
the full amount thereof unless authorized by 
the originator to make a deduction 
therefrom. Without prejudice to the duty 
not to deduct, the beneficiary's institution 
may, where appropriate, levy an additional 
charge on the beneficiary relating to the 
administration of his account. However, 
any such additional administrative charge 
shall not exceed the charge that would be 
made for a domestic credit transfer 
Where a breach of the duty to execute in 
accordance with the payment order as 
described in paragraph 1 has been caused by 
any institution other than the beneficiary's 
institution, and without prejudice to any 
other claim which might be made, the 
institution of the originator shall be liable to 
credit to the originator any sum wrongly 
deducted by any institution, at its own cost. 
Alternatively, if required to do so by the 
originator it shall transfer such amount to 
the credit of the beneficiary, free of all 
deductions, at its own cost. Any 
intermediary institution making a deduction 
in breach of the duty in paragraph 1 shall be 
liable to credit the sum so deducted to the 
institution of the originator. Alternatively, if 
required by the institution of the originator, 
it shall transfer such amount, free of all 
deductions, to the credit of the beneficiary, 
at its own cost. 2. Where a breach of the duty to execute in 
accordance with the payment order as 
described in paragraph 1 has been caused 
by any institution other than the 
beneficiary's institution, and without 
prejudice to any other claim which might be 
made, the institution of the originator shall 
be liable to credit to the beneficiary any 
sum wrongly deducted by any institution, at 
its own cost. Alternatively, if requested to 
do so by the originator it shall transfer such 
amount to his credit, free of all deductions, 
at its own cost. Any intermediary institution 
making a deduction in breach of the duty in 
paragraph 1 shall be liable to credit the sum 
so deducted to the institution of the 
beneficiary Alternatively, if requested by 
the institution of the originator, it shall 
transfer such amount, free of all deductions, 
to the originator's institution, at its own 
cost. 
K 
Where a breach of the duty to execute in 
accordance with the payment order has been 
caused by the beneficiary's institution, and 
without prejudice to any other claim which 
may be made, the beneficiary's institution 
shall be liable to credit to the beneficiary, at 
its own cost, any sum wrongly deducted. unchanged 
Article 7 
Obligation of institutions to refund in case of 
non-completed credit transfers Article 7 
Obligation of institutions to refund in case of 
non-completed EU credit transfers 
1. If, after a payment order has been accepted 
by the originator's institution, the related 
credit transfer is not for any reason 
completed, and without prejudice to any 
other claim which may be made, the 
originator is entitled to have his account 
credited on demand with the full amount of 
the credit transfer plus interest and the 
amount of the charges for the noncompleted 
credit transfer, such demand to be made not 
earlier than 20 business days after the date 
on which the credit transfer should have 
been completed. Each intermediary 
institution which has accepted the payment 
order likewise owes an obligation to refund 
at its own cost the amount of the credit 
transfer to the institution which instructed it. 1. If, after a payment order has been accepted 
by the originator's institution, the related 
EU credit transfer is not completed, and 
without prejudice to any other claim which 
may be made, the originator is entitled to 
have his account credited at his request 
with the full amount of the EU credit 
transfer up to ECU 10 000. plus interest 
and the amount of the charges for the non-
completed EU credit transfer, 15 business 
days after such request. This request may 
not be introduced before the expiry of the 
timescale set out in article 5. paragraph 1. 
Each intermediary institution which has 
accepted the payment order likewise owes 
an obligation to refund at its own cost the 
amount of the EU credit transfer to the 
institution which instructed it. 
If the non-completion of the credit transfer 
was caused by defective instructions given 
by the originator to his institution, the 
originator's institution and the other 
institutions involved shall use their best 
endeavours to make the refund referred to in 
paragraph 1. 2. If the non-completion of the EU credit 
transfer was caused by defective 
instructions given by the originator to his 
institution, the originator's institution and 
the other institutions involved shall use 
their best endeavours to make the refund 
referred to in paragraph 1. The institutions 
are not obliged in this case to refund the 
interest accruing. 
/( 
3. Member States may allow institutions to 3. Paragraph 1 is without prejudice to the 
derogate by contract from the obligation to 
refund, as described in paragraph 1. in the 
following cases: 
- where the non-completion of the credit 
transfer is due to force majeure; or 
- for payments above ECU 10 000. possibility for Member States to provide for 
an obligation to refund non-completed EU 
credit transfers, for amounts exceeding 
ECU 10 000. 
Article 7a 
Institutions may be exempted from the 
provisions of the present Directive to the extent 
that they can invoke reasons of force majeure 
pertinent to such provisions. 
Article 7b 
1. Any institution involved in a EU credit 
transfer shall take a decision without delay 
on complaints by its customers. 
2. If a complaint has not been remedied or a 
decision has not been taken on it within 
four weeks, complainants may approach 
one of the independent complaints offices 
to be set up for this purpose by the Member 
States. 
3. A list of addresses of such offices shall be 
available at all institutions carrying out EU 
credit transfers 
>r 
SECTION IV - Final Provisions SECTION IV - Final Provisions 
Article 8 
Implementation Article 8 
Implementation 
Member States shall bring into force the 
laws, regulations and administrative 
provisions necessary to comply with this 
Directive before 31 December 1996 at the 
latest. They shall forthwith inform the 
Commission thereof. unchanged 
When Member States adopt these 
provisions, these shall contain a reference to 
this Directive or shall be accompanied by 
such reference at the time of their official 
publication. The procedure for such 
reference shall be adopted by Member 
States. unchanged 
Member States shall communicate to the 
Commission the text of the main provisions 
of national law which they adopt in the field 
governed by this Directive. In this 
Communication Member States shall 
provide a table of correspondence showing 
the national provisions which exist or are 
introduced in respect of each article of this 
Directive unchanged 
Article 9 
Report to the European Parliament and the 
Council Article 9 
Report to the European Parliament and the 
Council 
No later than 31 December 1999, the 
Commission shall present a report to the 
European Parliament and the Council on the 
application of this Directive, accompanied where 
appropriate by proposals for its revision. unchanged 
Article 10 
Entry into force 
This Directive shall enter into force on the 
twentieth day following that of its publication in 
the Official Journal of the European 
Communities. Article 10 
Entry into force 
unchanged 
n 
Article 11 Article 11 
Addressees Addressees 
This Directive is addressed to the Member States unchanged 
Done at Brussels. 
For the For the 
European Parliament Council 
The President The President 
n 
ISSN 0254-1475 
COM(95) 264 final 
DOCUMENTS 
EN 09 
Catalogue number : CB-CO-95-287-EN-C 
ISBN 92-77-90393-7 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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