Payments: EU Law

(asked on 13th April 2018) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what recourse is available to small and medium sized businesses in the event that they are receiving charges which are contrary to the revised Directive on Payment Services.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 23rd April 2018

The Government has transposed the second Payment Services Directive (PSDII) fully into UK law.

The methods of recourse available to small and medium sized enterprises (SMEs) depend on the aspect of PSDII they are seeking recourse on. In all circumstances, we suggest the first port of call should be for the SME to try and resolve the issue directly with the business or individual in question.

For issues relating to the surcharging ban on consumer payment instruments, we recommend that all parties consult guidance published by the department for Business, Energy and Industrial Strategy (BEIS). If a customer thinks they have been subject to an unfair surcharge, they can contact the Citizens Advice consumer service for further information. The helpline provides free advice to consumers on their rights and will refer on complaints to Trading Standards for further enforcement action where necessary.

For charges relating to other aspects of PSDII (such as statements), micro businesses with a turnover of less than €2 million and fewer than 10 employees have recourse to the Financial Ombudsman Service (FOS). The FOS is an independent, non-governmental body, established under statute to provide for the proportionate, prompt and informal resolution of complaints against financial services firms. It provides a free, independent dispute resolution service for bank customers. Its decisions are binding on the firm concerned, without interfering with customers' rights to take legal action through the courts.

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