In this section

Summary of changes
Contents
Introduction
Overview of sponsorship
- General principles
- Summary of key processes
Direct Debit indemnities
- Different types of indemnities
  - Completing the wrong indemnity
  - How to complete the indemnities
- Frequently used indemnities
- Other indemnities
- Scottish Partnership indemnities
- Charity Indemnities
  - Charitable Incorporated Organisation
- Building Societies
- Additional information
  - Removal of the Paperless Direct Debit Indemnity
  - Lost or misplaced indemnity
Variation to set-ups
- Trading names
- Facilities management (FM)
- Management administration
Advance notice
- Timescales
- Varying advance notice period
- Exceptional dispensation
- Contents of advance notice
- Valid advance notice
- Example of an advance notice
Collection process
- Service user responsibilities
  - Payer’s records
- Sponsoring PSP responsibilities
- Error recovery procedures
- Example letter to be issued to the payer by the service user
Indemnity claims
- Submission of indemnity claim
- The challenge process
  - Challenge process
  - Challenge process - contact list
- Exceptions process - paper forms
- Refund request
- Consequential loss
- Court Injunction
AUDDIS
- Joining AUDDIS
- AUDDIS application and set-up
- Customer validation checks
- Software
Paperless Direct Debit
- Paperless Direct Debit service user set-up
- Additional risks to using Paperless Direct Debit
- Checklists
- Paperless Direct Debit sign-up methods
- Customer Reference Data (CRD)
- Approving documentation
  - Direct Debit Instruction (DDI)
  - Confirmation and advance notice
- Mandatory service user training
  - Procedures for dealing with mandatory training
- Payer verification
- Service user review after set-up (periodic review)
Person-to-Person Direct Debits
- Specific Risks
- Sponsoring PSP responsibilities
- Customer Reference Data
- Measures To Mitigate Error Fraud
- Service User Review After SetUp
- Process Flow
Transfer of sponsorship
- Transferring sponsor
- Receiving sponsor
- Customer Reference Data (CRD)
- Positioning of liability following a transfer of sponsorship
Termination of a service user
- Circumstances for termination
- Voluntary termination
- Compulsory termination
  - Timescales for conformity
  - Appeals Process
- Contractual capacity
- Indemnity Claims for service users in insolvency
Bulk change process
- General information
- Completing and signing the bulk change deed
- Indemnity claims
  - Indemnity claim raised against the previous (old) service user
- Responsibility (liability) for settling indemnity claims
- Positioning of liability following a bulk change
- Service user's frequently asked questions
- Dealing with requests to effect bulk changes
Bank grade status
- Why set a service user to bank grade?
Direct participant to direct Participant rules, queries and/or complaints process
Direct Debit Instruction
- Content of the DDI
- Approving the DDI
  - Example of prohibited practices
- Standing Order conversion
  - Design and approval of the DDI with Standing Order cancellation request
- List of Direct Debit Instructions available
Monitoring of the Scheme
- Action by sponsoring PSPs
- Complaint handling and timescales
Merges and significant changes
Appendix 1 – glossary of terms
Appendix 2 - Large value indemnity claims process
Appendix 3 - Settlement of indemnity claims without SUN on DDO
Appendix 4 - DDIC Automation process timescales
Appendix 5 - Example Internet script
- Appendix 5: Example Internet script – page 1
- Appendix 5: Example Internet script – page 2
- Appendix 5: Example Internet script – page 3
- Appendix 5: Example Internet script – page 4
- Appendix 5: Example Internet script – page 5
- Appendix 5: Example Internet script – page 6
Appendix 6: Completing the signing blocks on the Bulk Change Deeds

The Sponsoring Payment Service Provider's Guide and Rules to the Direct Debit Scheme

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The Sponsoring Payment Service Provider's Guide and Rules to the Direct Debit Scheme v2.7 - December 2022

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