Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON EU CREDIT TRANSFERS
Date: 1995-06-06
Institutions: European Commission
Subjects: consumer information, consumer protection, credit transfer, financial institution, financial transaction, frontier region

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 

EUROPEAN PARLIAMENT AND 
COUNCIL DIRECTIVE 

on cross-border credit  transfers 

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 
European  Community,  and  in  particular  Article 
100a thereof, 

unchanged 

Having 
Commission, 

regard 

to 

the  proposal 

from 

the 

unchanged 

Having  regard  to  the  opinion  of  the  Economic 
and  Social Committee, 

unchanged 

Having  regard  to  the  opinion  of  the  European 
Monetary  Institute, 

unchanged 

In  accordance  with  the  procedure  laid  down  in 
Article  189b of the Treaty, 

unchanged 

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  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  cross-
border  credit  transfers  should  lead  to  improved 
services and reduced prices, 

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 
implementation  of 
towards 
Economic  and  Monetary  Union,  whereas  its 
provisions  should  apply to  credit  transfers  in the 
currencies of the Member  States and the ECU; 

the  progressive 

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 

of 

banks 

that  payment 

the  Member 
systems 

Whereas  the  Committee  of  Governors  of  the 
States 
central 
recommended 
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 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 
in  Commission 
set  out 
Recommendation  90/109/EEC1;  whereas  it  is 
to  Council  Directive 
without 
91/308/EEC  of  10 June  1991 on  prevention  of 
the use of the financial system for the purpose of 
money laundering2; 

principles 

prejudice 

is  such 

Whereas the nature of EU  credit  transfers,  being 
a  series  of  operations  involving  institutions  in 
different  Member  States, 
that  a 
coordinated  approach  at  Community  level  is 
appropriate  and  necessary,  whereas  a  self-
regulatory  approach  has been  attempted  by the 
Commission 
Recommendation 
its 
90/109/EEC;  whereas  this  voluntary  approach 
has  not  achieved  the  desired  results;  whereas  a 
binding measure is therefore  appropriate, 

by 

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 
Commission 
out 
principles 
Recommendation  90/109/EEC1;  whereas  it  is 
without 
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; 

prejudice 

set 

in 

the  nature  of  cross-border  credit 
Whereas 
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 
Recommendation 
its 
90/109/EEC,  whereas  this  voluntary  approach 
has  not  achieved  the  desired  results;  whereas  a 
binding measure is therefore  appropriate; 

by 

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 
the  minimum  cost,  using 
State 
existing procedures where available. 

level,  with 

Whereas 
its 
the  European  Parliament, 
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, 

in 

unchanged 

unchanged 

code  of  good 

conduct,  whereas 
pursued 

Whereas the Economic  and  Social  Committee, in 
its Opinion of 6 July  1994, stated  a preference  for 
the 
a 
Commission 
this 
has  previously 
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 
this  Directive 
follows  this  model,  by  allowing  a  large  measure 
of freedom of contract, 

framework;  whereas 

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 
supply  credit 
transfer  services to the public as part of their 
business. 

institutions  which 

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 
as  defined  in  Article  I  of  Council  Directive 
77/780/EEC3,  for 
this 
Directive,  branches  of  credit  institutions  in 
different  Member  States  are  deemed  to  be 
separate institutions, 

the  purposes  of 

unchanged 

(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, 

(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; 

(c)  "institution" shall mean a credit institution or 

unchanged 

other  institution; 

(d)  "person"  shall  mean  either  a  legal  or  a 

unchanged 

natural person, as the context may require, 

O.J. NoL322,  17  12.1977, p. 30. 

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) 

shall  mean  a 
"cross-border  payment" 
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; 

unchanged 

unchanged 

(g)  "originator"  shall  mean  a  person 

that 
authorizes the making  of a credit  transfer  to 
a beneficiary, 

(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 

(h)  "beneficiary"  shall  mean  the  final  recipient 

a credit  transfer, 

of a EU credit  transfer, 

(i) 

(j) 

"customer"  shall  mean  the  originator  or  the 
beneficiary,  as the  context  may  require,  and 
may be one and the same person; 

"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 
the  originator's  payment 
beginning  with 
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 

(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 
the  originator's 
payment  order, 

to  carry  out 

A& 

(1) 

include 

shall  not 

"force  majeure" 
the 
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; 

(1) 

"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 
second 
subparagraph  of  Article  4(6)  of  Council 
Directive 90/314/EEC4-); 

(ii)  of 

(indent 

the 

(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; 

(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: 

is  debited 

(n)  "value  date"  shall  mean  the  date  on  which 
the  customer's  account 
(for 
originators)  or  credited  (for  beneficiaries) 
such  date  being 
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, 

that  applied  by 

(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; 

(q)  "intermediary 

institution"  shall  mean  an 
that  of  the 

is  neither 

institution  which 
originator nor that of the  beneficiary; 

unchanged 

unchanged 

(p)  "completion"  of  a  EU  credit  transfer  shall 
the  beneficiary's 

mean  acceptance  By 
institution; 

(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 credit  transfers 

(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 
the 
to  be  credited 
beneficiary's  institution  or to the beneficiary,  as 
appropriate, 

the  account  of 

to 

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; 

The  institution  shall  supply  its  customers  with 
comprehensible  written 
readily 
and 
clear 
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  procedures  available 
to  the  customer  and  the  method  of  gaining 
access to them. 

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 

and 

readily 

The  institution  shall  supply  its  customers  with 
comprehensible  written 
clear 
information,  including,  where  appropriate,  by 
electronic means,  subsequent  to  their  making  or 
receiving  a EU  credit  transfer.  This  information 
shall at least include: 

a  reference  enabling  its  customer  to  identify 
the payment; 

unchanged 

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  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 
the 
stated  by 
beneficiary, 

the  beneficiary's  bank 

to 

the value date, if any, applied by the institution. 

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 

(or 

the 

time  scale  agreed  with 
institution)  making 

Each  institution  having  accepted  a  payment 
order shall execute the related  credit  transfer 
the 
within 
customer 
the 
payment  order.  In  the  absence  of  a  specific 
agreement  as 
the 
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: 

time  scale, 

to 

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  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  institution  of  the  originator  shall  be 
responsible  to  the  originator  for  ensuring  that 
the  EU  credit  transfer  is  completed  no  later 
the  fifth  business  day 
than 
following  acceptance  by  it  of  the  payment 
order from the originator; and 

the  end  of 

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. 

institution 

originator's 

The 
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 
institution 
paragraph  1,  the  beneficiary's 
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 
institution 
paragraph  1,  the  beneficiary's 
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 
administration  of his account.  However,  any 
such  additional  administrative  charge  shall 
not  exceed  the  charge  that  would  be  made 
for  a domestic credit  transfer. 

beneficiary 

relating 

the 

to 

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, 
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. 

own 

its 

at 

1.  The 

institution, 

originator's 

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 
to  make  a  deduction 
the  originator 
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 

any 

other 

institution 

institution, 

2. Where a breach  of the duty to  execute in 
accordance  with  the  payment  order  as 
described  in  paragraph  1  has  been  caused 
the 
by 
than 
beneficiary's 
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 
the 
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. 

institution  of 

to 

K 

unchanged 

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. 

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. 

transfer 

for  any 

If,  after  a payment  order  has been  accepted 
by  the  originator's  institution,  the  related 
credit 
reason 
is  not 
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 
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. 

completed. 

Each 

If  the  non-completion  of  the  credit  transfer 
was  caused  by  defective  instructions  given 
by  the  originator  to  his  institution,  the 
the  other 
originator's 
institutions  involved  shall  use  their  best 
endeavours to make the refund  referred to in 
paragraph  1. 

institution 

and 

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. 

by 

2. If  the  non-completion  of  the  EU  credit 
transfer  was 
defective 
caused 
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 
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. 

3.  Paragraph  1  is  without  prejudice  to  the 
possibility for Member States to provide for 
an  obligation  to  refund  non-completed  EU 
transfers,  for  amounts  exceeding 
credit 
ECU  10 000. 

Article 7a 

the 
Institutions  may  be  exempted 
provisions  of the  present  Directive  to  the  extent 
that  they  can  invoke  reasons  of  force  majeure 
pertinent to such provisions. 

from 

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 

unchanged 

unchanged 

unchanged 

and 

regulations 

Member  States  shall  bring  into  force  the 
administrative 
laws, 
provisions  necessary  to  comply  with  this 
Directive  before  31  December  1996  at  the 
latest.  They  shall  forthwith 
the 
Commission thereof. 

inform 

adopt 

States 

When  Member 
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 
such 
reference  shall  be  adopted  by  Member 
States. 

for 

this  Directive. 

Member  States  shall  communicate  to  the 
Commission  the  text  of the  main  provisions 
of national  law which they adopt  in the field 
this 
governed  by 
shall 
Communication  Member 
provide  a  table  of  correspondence  showing 
the  national  provisions  which  exist  or  are 
introduced  in  respect  of  each  article  of  this 
Directive 

States 

In 

Article 9 
Report to the European Parliament and the 
Council 

Article 9 
Report to the European Parliament and the 
Council 

later 

than  31  December 

the 
No 
Commission  shall  present  a  report 
the 
European  Parliament  and  the  Council  on  the 
application  of this  Directive,  accompanied  where 
appropriate by proposals for its revision. 

1999, 
to 

unchanged 

Article 10 
Entry into force 

Article 10 
Entry into force 

This  Directive  shall  enter  into  force  on  the 
twentieth  day  following  that  of  its  publication  in 
the  Official 
the  European 
Communities. 

Journal 

of 

unchanged 

n 

Article 11 

Addressees 

Article 11 

Addressees 

This Directive is addressed to the Member States 

unchanged 

Done at Brussels. 

For the 
European Parliament 

For the 
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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