Direct Debit indemnity claims
Under the Direct Debit Guarantee, if a Direct Debit is collected from your customer's account in error, they are entitled to an immediate refund from Griffin as the paying bank. Griffin refunds the account, then recovers the money from the originator through the Bacs scheme by raising a Direct Debit Indemnity Claim (DDIC).
This guide covers when a claim applies, what to do before you raise one, how to raise it, and what happens afterwards. For the concepts behind Direct Debits and the parties involved, see Direct Debits on Griffin accounts.
You raise a claim by contacting Griffin. There is no API for raising or tracking claims yet, so there is nothing to integrate against in the sandbox.
When a claim applies
A claim applies when the collection itself was wrong. The common cases are:
- Wrong amount: the originator collected a different amount from the one in its advance notice.
- Wrong date: the originator collected on a different date from the one in its advance notice.
- No authority: your customer didn't set up the Direct Debit, or doesn't recognise the originator.
- Collected after cancellation: the originator collected after the mandate was cancelled.
A claim does not apply when the collection was correct but your customer is unhappy with what they paid for, has changed their mind, or disputes the underlying contract. These are matters between your customer and the originator, and your customer should take them up with the originator directly.
The Guarantee has no time limit, so a claim can be raised for an old collection. Raise claims as soon as you can all the same: the evidence is easier to gather and the outcome is quicker.
Before you raise a claim
1. Identify the disputed collections
Find the mandate the collection was made against in the account's mandates list, then list the payments collected against it using its mandate-payments-url:
curl "https://api.griffin.com/v0/mandates/mn.Qy3vTfNhTvGYlG0mBv9WkQ/payments" \
-H "Authorization: GriffinAPIKey $GRIFFIN_API_KEY"
Note the URL, amount, and date of each payment your customer disputes. One claim can cover up to 12 collections, as long as they were all made against the same mandate.
2. Check the claim and gather evidence
Confirm with your customer which of the cases above applies, and ask for anything that supports it. For example:
- the advance notice from the originator showing a different amount or date;
- confirmation that they cancelled the mandate or the contract, and when;
- a statement that they did not set up the Direct Debit.
Review this before you send the claim to us. If the evidence shows the collection was correct, the claim is likely to be challenged by the originator and the refund recovered from the account (see If the originator challenges).
3. Cancel the mandate if needed
If your customer didn't authorise the Direct Debit, or the originator is collecting after cancellation, cancel the mandate to stop further collections. Cancelling a mandate does not raise a claim, and raising a claim does not cancel the mandate: they are separate actions.
4. Consider the originator
For a simple error, such as a wrong amount, contacting the originator is often the quickest way for your customer to get their money back, and you can suggest it. You must not make it a condition of raising a claim: the Guarantee entitles your customer to a refund from their bank regardless.
Raise a claim
Email support@griffin.com with the subject line "Direct Debit indemnity claim", and include:
| Detail | What to send |
|---|---|
| Account | The account-url of the account the collections were taken from |
| Mandate | The mandate-url of the mandate the collections were made against |
| Collections | The payment URL, amount, and date of each disputed collection (up to 12) |
| Reason | Which case applies, and a short description of what happened in your customer's words |
| Evidence | Anything you gathered in step 2 |
| Mandate status | Whether the mandate has been cancelled |
Send one request per claim, remembering that 12 collections on a single mandate can be included in a single claim. If your customer disputes collections from more than one originator, send a separate request for each.
We'll confirm receipt and come back to you if we need anything else.
What happens next
Days below are working days, counted from the day Griffin submits the claim to the scheme (day 0).
| When | What happens | What you see |
|---|---|---|
| Day 0 | We check your request, credit the full claimed amount to the account, and submit the claim to Bacs. | A credit on the account for the refund |
| Days 1–11 | The originator is notified of the claim and can accept or challenge it. The claim can still be withdrawn. | Nothing, unless we contact you |
| Day 14 | The claim settles and the funds are recovered from the originator. | Nothing: the refund is already on the account |
Your customer is refunded at the start of the process, not when the claim settles.
Withdrawing a claim
If your customer tells you the collection was correct after all, or the originator refunds them directly, let us know as soon as possible. We can withdraw the claim up to day 11. If we withdraw it, we debit the refund back from the account, since we will no longer recover the funds from the originator.
After day 11 the claim can't be withdrawn. If your customer has been refunded twice, it's for the originator to recover the extra refund from them.
If the originator challenges
An originator can challenge a claim if it believes the collection was valid, for example because it holds a valid mandate and gave correct advance notice. We review the originator's evidence against what you sent us.
If we decide the challenge is valid, we debit the refunded amount back from the account. We'll let you know this is happening so you can let your customer know.
Recovering a refund can take the account into a negative balance if your customer has already spent the funds. In this case, you will be liable for the remaining funds to be recovered.
Building this into your product
Your customers will expect to dispute a Direct Debit in the same place they see it. To support claims well:
- Give your customers a way to report a disputed Direct Debit, such as a "Report a problem" action on a collection or a route through your support team.
- Capture the details listed in Raise a claim at the point of reporting, so you can forward a complete request without going back to your customer.
- Route requests to us promptly. Your customer is entitled to an immediate refund, and delays in reaching us delay the refund.
- Set expectations with your customer: they'll be refunded once we accept the claim, but if the originator shows the collection was valid, the refund will be taken back.
- Tell us straight away if your customer withdraws their claim or is refunded by the originator.