CELEX: 51995PC0264
Language: en
Date: 1995-06-06
Title: Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON EU CREDIT TRANSFERS

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)
 ---pagebreak---  ---pagebreak---      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
 ---pagebreak--- 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
 ---pagebreak---  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).
                                               ^
 ---pagebreak---  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
 ---pagebreak---                    Proposai for a                                  Modified Proposal for a
       EUROPEAN PARLIAMENT AND                              EUROPEAN PARLIAMENT AND
             COUNCIL DIRECTIVE                                    COUNCIL DIRECTIVE
         on cross-border credit transfers                          on EU credit transfers
THE EUROPEAN PARLIAMENT AND THE                       THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,                        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             Whereas the volume of remote cross-border
payments is growing steadily as the completion of     payments is growing steadily as the completion
the internal market and the progressive move          of the internal market and the progressive move
towards full economic and monetary union lead         towards full economic and monetary union lead
to greater trade flows and movement of people         to greater trade flows and movement of people
throughout the Community; whereas cross-              throughout the Community; whereas EU credit
border credit transfers account for a substantial     transfers account for a substantial part of the
part of the volume and the value of remote cross-     volume and the value of remote cross-border
border payments;                                      payments,
Whereas it is of paramount importance for             Whereas it is of paramount importance for
individuals and businesses to be able to make         individuals and businesses to be able to make
credit transfers rapidly, reliably, and cheaply from  credit transfers rapidly, reliably, and cheaply
one part of the Community to another; whereas a       from one part of the Community to another,
market in which there is competition for cross-       whereas a market in which there is competition
border credit transfers should lead to improved       for EU credit transfers should lead to improved
services and reduced prices,                          services and reduced prices,
                                                       ^>
 ---pagebreak---  Whereas this Directive intends to follow up the        Whereas this Directive intends to follow up the
 progress towards the liberalization of capital         progress towards the liberalization of capital
 movements reached during stage 1 of economic           movements reached during stages 1 and 2 of
 and monetary union; whereas it takes account of        Economic and Monetary Union; whereas it takes
 the purpose of facilitating the use of the ECU set     account of the purpose of facilitating the use of
 out in the Treaty; whereas it is conceived as a        the ECU; whereas it is conceived as a step
 step towards the progressive implementation of         towards the progressive implementation of
 economic and monetary union, whereas its               Economic and Monetary Union, whereas its
 provisions should apply to credit transfers in any     provisions should apply to credit transfers in the
 currency, including the ECU;                           currencies of the Member States and the ECU;
 Whereas this Directive is intended to implement       unchanged
 one aspect of the programme of work drawn up
 by the Commission following its Green Paper
 "Making payments in the internal market",
 Whereas the Commission has recommended to             unchanged
 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,
Whereas the Committee of Governors of the              unchanged
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,
                                                      é
 ---pagebreak---  Whereas the purpose of this Directive is to          Whereas the purpose of this Directive is to
 improve cross-border credit transfer services and    improve EU credit transfer services and thus
 thus assist the EMI in its task of promoting the     assist the EMI in its task of promoting the
 efficiency of cross-border payments with a view      efficiency of cross-border payments with a view
 to the preparation of the third stage of Economic    to the preparation of the third stage of Economic
 and Monetary Union;                                  and Monetary Union;
 Whereas, having regard to the third paragraph of     Whereas, having regard to the third paragraph of
 Article 3b of the Treaty, this Directive lays down   Article 3 b of the Treaty, this Directive lays down
 the minimum requirements needed to ensure an         the minimum requirements needed to ensure an
 adequate level of customer information, whereas      adequate level of customer information, whereas
 greater transparency is ultimately dependent on      greater transparency is ultimately dependent on
 institutions' adherence to minimum performance       institutions' adherence to minimum performance
 requirements; whereas this Directive lays down       requirements; whereas this Directive lays down
 the minimum performance requirements which           the minimum performance requirements which
 institutions offering cross-border credit transfer   institutions offering EU credit transfer services
 services should adhere to; whereas this Directive    should adhere to, whereas this Directive fulfils
 fulfils the first, second, third, fourth and fifth   the principles set out in Commission
 principles       set      out       in    Commission Recommendation 90/109/EEC1; whereas it is
                                      1
 Recommendation 90/109/EEC ; whereas it is            without prejudice to Council Directive
 without prejudice to Council Directive               91/308/EEC of 10 June 1991 on prevention of
 91/308/EEC of 10 June 1991 on prevention of          the use of the financial system for the purpose of
the use of the financial system for the purpose of    money laundering2;
money laundering2;
Whereas the nature of cross-border credit             Whereas the nature of EU credit transfers, being
transfers, being a series of operations involving     a series of operations involving institutions in
institutions in different Member States, is such      different Member States, is such that a
that a coordinated approach at Community level        coordinated approach at Community level is
is appropriate and necessary, whereas a self-         appropriate and necessary, whereas a self-
regulatory approach has been attempted by the         regulatory approach has been attempted by the
Commission           by       its      Recommendation Commission         by     its     Recommendation
90/109/EEC, whereas this voluntary approach           90/109/EEC; whereas this voluntary approach
has not achieved the desired results; whereas a       has not achieved the desired results; whereas a
binding measure is therefore appropriate;             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.
 ---pagebreak---  Whereas this Directive should apply to credit       Whereas this Directive should apply to EU credit
transfers for any amount; whereas institutions       transfers for any amount; whereas institutions
 should be under an obligation to refund in the      should be under an obligation to refund in the
case of a non-completed transfer, whereas the        case of a non-completed transfer;
 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 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              unchanged
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,
Whereas the Economic and Social Committee, in        unchanged
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,
HAVE ADOPTED THIS DIRECTIVE:                         unchanged
 ---pagebreak---       SECTION I - Scope and définitions                     SECTION I - Scope and definitions
                      Article 1                                             Article 1
                        Scope                                                Scope
     Member States shall apply the requirements            Member States shall apply the requirements
     of this Directive to credit institutions and to        of this Directive to credit institutions and to
     other institutions which supply credit                 other institutions which supply EU credit
     transfer services to the public as part of their      transfer services to the public as part of
     business.                                             their business.
     This Directive shall apply to credit transfers        This Directive shall apply to EU credit
     in any currency, including the ECU, and for           transfers in the currencies of the Member
     any amount save where the derogation in                States and the ECU, and for any amount.
     Article 7(3) has been exercised.
                      Article 2                                             Article 2
                     Definitions                                           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           (b) "other institution" shall mean any legal
     person, other than a credit institution, that         person, other than a credit institution, that
     supplies to the public, by way of business,           supplies to the public, by way of business,
     credit transfer services,                             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
 ---pagebreak--- (e) "payment" shall mean the transfer by an           unchanged
    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               unchanged
    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             (g) "originator" shall mean a person that
    authorizes the making of a credit transfer to         authorizes the making of a EU credit
    a beneficiary,                                        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) "customer" shall mean the originator or the       unchanged
    beneficiary, as the context may require, and
    may be one and the same person;
(j) "payment order" shall mean an instruction in      unchanged
    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       (k) "EU credit transfer" shall mean a cross-
    payment, consisting of a series of operations         border payment, consisting of a series of
    beginning with the originator's payment               operations beginning with the originator's
    order. The term includes any payment order            payment order. The term includes any
    issued by the originator's institution or any          payment order issued by the originator's
    intermediary institution intended to carry             institution or any intermediary institution
    out the originator's payment order,                   intended to carry out the originator's
                                                          payment order,
                                                    A&
 ---pagebreak--- (1)  "force majeure" shall not include the             (1)  "force majeure" shall mean unusual and
     insolvency of an intermediary institution but          unforeseeable circumstances beyond the
     shall otherwise have the meaning ascribed to           control of the party by whom it is pleaded,
     it in indent (ii) of the second subparagraph           the consequences of which could not have
     of Article 4(6) of Council 'Directive                  been avoided even if all due care has been
     90/314/EEC4;                                           exercised (indent (ii) of the second
                                                            subparagraph of Article 4(6) of Council
                                                            Directive 90/314/EEC4-);
(m) "interest" shall mean the inter-bank offered       (m) "interest" shall mean the rate which the
     rate, increased by two percentage points, in           institution would apply to its customer's
     the relevant market for deposits in the                account, for the relevant period, if that
     currency of any given payment, calculated              customer's account were then overdrawn:
     for the period of the delay;
(n) "value date" shall mean the date on which          unchanged
     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          unchanged
     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       (p) "completion" of a EU credit transfer shall
     acceptance by the beneficiary's institution;           mean acceptance By the beneficiary's
                                                            institution;
(q) "intermediary institution" shall mean an            (q) "intermediary institution" shall mean an
     institution which is neither that of the               institution which is neither that of the
     originator nor that of the beneficiary;                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      (r)  "business day" in relation to any particular
     institution shall mean a day, or part of a day,        institution shall mean a day, or part of a
     on which that institution is open for the              day, on which that institution is open for
     processing of credit transfers                         the processing of EU credit transfers
4
    OJ. NoL158. 23.6.1990, p. 59.
                                                      >1
 ---pagebreak---  SECTION II - Transparency of conditions for             SECTION II - Transparency of conditions
                   credit transfers                                 for EU credit transfers
                       Article 3                                            Article 3
  Information prior to a credit transfer (made            Information prior to a EU credit transfer
                     or received)                                     (made or received)
The institution shall supply its customers with        The institution shall supply its customers with
clear written information about the services it        clear and readily comprehensible written
provides to effect or receive credit transfers. This   information including, where appropriate by
information shall include:                             electronic means, about the services it provides
                                                       to effect or receive EU credit transfers This
                                                       information shall at least include:
   an indication of the time needed for the funds      unchanged
   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     - the basis of the calculation, including the
   and charges payable by the customer to the             rates, of any commission fees and charges
   institution.                                           payable by the customer to the institution,
                                                          including any taxes applied;
                                                       - an indication of the exchange rate references
                                                          used,
   the value date, if any, applicable by the           unchanged
   institution;
   a reference to the redress procedures available        a reference to the redress and complaints
   to the customer and the method of gaining              procedures available to the customer and the
   access to them.                                        method of gaining access to them.
                                                          JL
 ---pagebreak---                        Article 4                                             Article 4
  Information subsequent to a credit transfer               Information subsequent to a EU credit
                 (made or received)                                transfer (made or received)
The institution shall supply its customers with        The institution shall supply its customers with
clear written information subsequent to their          clear and readily comprehensible written
making or receiving a credit transfer. This            information, including, where appropriate, by
information shall at least include                     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       unchanged
   the payment;
   the amount of any charges payable by its               the commission fees and charges payable by
   customer. Where the originator has authorized          its customer. Where the originator has
   a deduction from the amount of a credit                authorized a deduction from the amount of a
   transfer, this fact and the original amount of         EU credit transfer, this fact and the original
   the credit transfer should be stated by the            amount of the EU credit transfer should be
   beneficiary's bank to the beneficiary;                 stated by the beneficiary's bank to the
                                                          beneficiary,
   the value date, if any, applied by the institution. unchanged
    SECTION III - Minimum obligations of                   SECTION HI - Minimum obligations of
    institutions in respect of credit transfers         institutions in respect of EU credit transfers
                       Article 5                                             Article 5
        Obligation to execute in good time                     Obligation to execute in good time
      Each institution having accepted a payment             Each institution having accepted a payment
      order shall execute the related credit transfer        order shall execute the related EU credit
      within the time scale agreed with the                  transfer within the time scale agreed with
      customer (or institution) making the                   the customer (or institution) making the
      payment order. In the absence of a specific            payment order. In the absence of a specific
      agreement as to the time scale, the                    agreement, each institution shall act as fast
      institution shall act soon enough to enable            as possible and, in that event, the following
      its published clear time scale to be achieved.         obligations shall apply:
      Where there is neither a specific agreement
      nor an applicable published time scale, the
      following obligations shall apply:
                                                       O
 ---pagebreak--- the institution of the originator shall be           the institution of the originator shall be
responsible to the originator for ensuring that      responsible to the originator for ensuring that
the credit transfer is completed no later than       the EU credit transfer is completed no later
the end of the fifth business day following          than the end of the fifth business day
acceptance by it of the payment order from the       following acceptance by it of the payment
originator, and                                      order from the originator; and
the institution of the beneficiary shall be          the institution of the beneficiary shall be
obliged to place the amount of the credit            obliged to place the amount of the EU credit
transfer at the disposal of the beneficiary, at      transfer at the disposal of the beneficiary, at
the latest by the end of the business day            the latest by the end of the business day
following completion of the credit transfer.         following completion of the EU credit
                                                     transfer.
   The originator's institution shall compensate        The       originator's     institution    shall
   the originator by the payment of interest on         compensate the originator by the payment
   the amount of the credit transfer where it is        of interest on the amount of the EU credit
   completed late, but shall not be liable for          transfer where it is completed late, but shall
   consequential losses under this Directive.           not be liable for consequential losses under
   No compensation shall be payable where the           this Directive. Where the originator's
   originator's bank can establish that the delay       institution is not responsible for the delay, it
   was attributable to the originator.                  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 3.     In addition to the obligation of execution in
   paragraph 1, the beneficiary's institution            paragraph 1, the beneficiary's institution
    shall compensate the beneficiary by the              shall compensate the beneficiary by the
   payment of interest on the amount of the              payment of interest on the amount of the
   credit transfer where it is late in being             EU credit transfer where it is late in placing
   placed at the beneficiary's disposal.                 such amount at the beneficiary's disposal.
                                                     IH
 ---pagebreak---                       Article 6                                            Article 6
 Obligation to execute in accordance with the         Obligation to execute in accordance with the
 instructions contained in the payment order           instructions contained in the payment order
1.   The originator's institution, any intermediary   1.   The       originator's    institution,     any
     institution and the beneficiary's institution,        intermediary institution and the beneficiary's
     once they have accepted the payment order,            institution, once they have accepted the
     shall each be obliged to execute the related          payment order, shall each be obliged to
     credit transfer for the full amount thereof           execute the related EU credit transfer for
     unless authorized to make a deduction                 the full amount thereof unless authorized by
     therefrom. Without prejudice to the duty not          the originator to make a deduction
     to deduct, the beneficiary's institution may,         therefrom. Without prejudice to the duty
     where appropriate, levy an additional charge          not to deduct, the beneficiary's institution
     on the beneficiary relating to the                    may, where appropriate, levy an additional
     administration of his account. However, any           charge on the beneficiary relating to the
     such additional administrative charge shall           administration of his account. However,
     not exceed the charge that would be made              any such additional administrative charge
     for a domestic credit transfer.                       shall not exceed the charge that would be
                                                           made for a domestic credit transfer
     Where a breach of the duty to execute in              2. Where a breach of the duty to execute in
     accordance with the payment order as                  accordance with the payment order as
     described in paragraph 1 has been caused by           described in paragraph 1 has been caused
     any institution other than the beneficiary's          by any institution other than the
     institution, and without prejudice to any             beneficiary's institution, and without
     other claim which might be made, the                  prejudice to any other claim which might be
     institution of the originator shall be liable to      made, the institution of the originator shall
     credit to the originator any sum wrongly              be liable to credit to the beneficiary any
     deducted by any institution, at its own cost.         sum wrongly deducted by any institution, at
     Alternatively, if required to do so by the            its own cost. Alternatively, if requested to
     originator it shall transfer such amount to           do so by the originator it shall transfer such
     the credit of the beneficiary, free of all            amount to his credit, free of all deductions,
     deductions, at its own cost. Any                      at its own cost. Any intermediary institution
     intermediary institution making a deduction           making a deduction in breach of the duty in
     in breach of the duty in paragraph 1 shall be         paragraph 1 shall be liable to credit the sum
     liable to credit the sum so deducted to the           so deducted to the institution of the
     institution of the originator. Alternatively, if      beneficiary Alternatively, if requested by
     required by the institution of the originator,        the institution of the originator, it shall
     it shall transfer such amount, free of all            transfer such amount, free of all deductions,
     deductions, to the credit of the beneficiary,         to the originator's institution, at its own
     at its own cost.                                      cost.
                                                      K
 ---pagebreak---      Where a breach of the duty to execute in         unchanged
     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                                           Article 7
 Obligation of institutions to refund in case of      Obligation of institutions to refund in case of
         non-completed credit transfers                     non-completed EU credit transfers
1.  If, after a payment order has been accepted       1.  If, after a payment order has been accepted
    by the originator's institution, the related          by the originator's institution, the related
    credit transfer is not for any reason                 EU credit transfer is not completed, and
    completed, and without prejudice to any               without prejudice to any other claim which
    other claim which may be made, the                    may be made, the originator is entitled to
    originator is entitled to have his account            have his account credited at his request
    credited on demand with the full amount of            with the full amount of the EU credit
    the credit transfer plus interest and the             transfer up to ECU 10 000. plus interest
    amount of the charges for the noncompleted            and the amount of the charges for the non-
    credit transfer, such demand to be made not           completed EU credit transfer, 15 business
    earlier than 20 business days after the date          days after such request. This request may
    on which the credit transfer should have              not be introduced before the expiry of the
    been      completed.      Each     intermediary       timescale set out in article 5. paragraph 1.
    institution which has accepted the payment            Each intermediary institution which has
    order likewise owes an obligation to refund           accepted the payment order likewise owes
    at its own cost the amount of the credit              an obligation to refund at its own cost the
    transfer to the institution which instructed it.      amount of the EU credit transfer to the
                                                          institution which instructed it.
    If the non-completion of the credit transfer          2. If the non-completion of the EU credit
    was caused by defective instructions given            transfer     was caused by           defective
    by the originator to his institution, the             instructions given by the originator to his
    originator's institution and the other                institution, the originator's institution and
    institutions involved shall use their best            the other institutions involved shall use
    endeavours to make the refund referred to in          their best endeavours to make the refund
    paragraph 1.                                          referred to in paragraph 1. The institutions
                                                          are not obliged in this case to refund the
                                                          interest accruing.
                                                      / (
 ---pagebreak--- 3.  Member States may allow institutions to     3.    Paragraph 1 is without prejudice to the
    derogate by contract from the obligation to       possibility for Member States to provide for
    refund, as described in paragraph 1. in the       an obligation to refund non-completed EU
    following cases:                                  credit transfers, for amounts exceeding
                                                      ECU 10 000.
   - where the non-completion of the credit
      transfer is due to force majeure; or
   - for payments above 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
 ---pagebreak---          SECTION IV - Final Provisions                      SECTION IV - Final Provisions
                     Article 8                                         Article 8
                 Implementation                                     Implementation
      Member States shall bring into force the       unchanged
      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.
     When Member States adopt these                  unchanged
     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.
     Member States shall communicate to the          unchanged
     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
                     Article 9                                         Article 9
  Report to the European Parliament and the           Report to the European Parliament and the
                     Council                                            Council
No later than 31 December 1999, the                  unchanged
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.
                    Article 10                                        Article 10
                 Entry into force                                   Entry into force
This Directive shall enter into force on the         unchanged
twentieth day following that of its publication in
the Official      Journal of the European
Communities.
                                                     n
 ---pagebreak---                     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
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(95) 264 final
                                               DOCUMENTS
EN                                                                             09
                                     Catalogue number : CB-CO-95-287-EN-C
                                                              ISBN 92-77-90393-7
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