Blog – David McCarthy – Galway Talks, 17/10/2013

Issue:  Savers hit hard with increase in Deposit Tax.

Comment: Savers have been hit hard again with an increase in DIRT Tax from 33% to 41% in the recent budget.  We have produced an information leaflet for readers of this blog, which outlines our view on this issue.  This can be accessed at https://financialconsultants.ie/savers-hit-by-falling-rates-and-increased-taxation/

Issue:  Warning to businesses over new rules for Direct Debits.

Comment: A single payment system will be introduced across the EU in February.  One of the most “baffling” parts of these new regulations relates to direct debits. 

A customer from whom a direct debit payment has been made out of their account, can request their bank to refund that payment to them up to 8 weeks after the payment was made, on a “no questions asked” basis.  The recipient that receives the direct debit payment will then be debited with the refund. 

This has serious consequences for businesses who accept direct debits as a form of payment.  It means that they cannot be guaranteed, that any payment they receive will not be potentially reversed up to 8 weeks after it was made.  In our opinion most businesses are not aware of this new regulation and for those that actively use direct debits, it will be essential for them to review how they accept payments from their customers in the future.

I have no doubt that there are people who could potentially abuse these new regulations.