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Is there anything in the terms and conditions that states you must achieve a certain level please?
When the scheme was originally set up, we were within the parameters, but they have now changed those parameters
But does the terms specify a minimum turnover?
Or that they can change the minimum turnover requirement?
This is the wording from the document:
Application for sponsorship
The application of a prospective Originator must stand on its own merits.
It is the Sponsor’s duty to assess the suitability of the prospective Originator.
Consideration must include:
- contractual capacity.
- financial standing
- the quality of its administrative control
An Originator must have a registered address in the UK and a UK sterling
bank account. All communications in respect of the Scheme (including BACS
reports) will be posted to the UK registered address, or will be available to
download from BACSTEL-IP, if you are using BACSTEL-IP.
An Originator must complete and lodge an Indemnity with its Sponsor. An
Originator which is an overseas registered company, or which has its principal
place of business overseas, must provide legal opinion that the Indemnity
would be enforceable under the overseas jurisdiction and / or provide proof
of adequate assets within the UK jurisdiction.
The success of the application will not be influenced by the existence or
availability of any private insurance to cover an Originator’s Indemnity liability.
Third party support for the liability assumed under the Indemnity is
unacceptable to the Sponsor. However, in this context, the relationship
between parent and subsidiary companies is not deemed a third party
relationship, and may be taken into consideration for so long as it lasts,
provided an Indemnity has been given by the parent company.
Originators may in some instances hold an account with more than one
Bank. In such instances Originators will be sponsored by all the Banks with
whom an account is held for that OIN. Collected funds must be credited to
an account in the name of the Originator which must be held by the
Sponsor(s). Each Sponsor shall be responsible, without limit of time and
amount, for Direct Debits collected under the Originator’s account maintained
with it under that OIN.
Does it specify a minimum or that they can change the minimum requirement - I can not see that it says this?
No it doesn't and I have searched the whole document for the word "turnover" and it doesn't appear anywhere. There is also this wording from the contract about compulsory termination
13.2 Compulsory termination
In the event of an Originator causing significant problems for the industry as a
whole, leading for example to Paying Bank complaints to the Direct Debit
Scheme Steering Group, it will be given two written warnings through its
Sponsor.The first written warning will outline the general nature of the
problem occurring detailing the requirements to conform and a time period
for achieving conformity. Should the problem not be rectified within the
agreed period, a second written warning will be given further specifying the
nature of the problem, the requirements to conform and a further time period
for achieving conformity. In setting the time period, the Direct Debit Scheme
Steering Group will take into consideration the nature of the problem and the
extent of the activity required to achieve conformity. Should conformity not be
achieved within the time frames set out in the second written warning, the
Sponsor will report to the Direct Debit Scheme Steering Group who will in
turn report to the BACS Payment Schemes Ltd Board who will have the right
to instruct the Sponsor to terminate the Originator from the Scheme without
An Originator will be removed from the Scheme if the BACS Payment
Schemes Ltd Board reasonably believes that:
– Direct Debiting operations are being carried out in a manner which
constitutes an abuse of the Scheme, affects the integrity of the Scheme or
Direct Debiting operations are being carried out without due regard to
the interest of Payers
– Where there is evidence that standards and procedures detailed in this
Guide are being deliberately ignored.
In extreme cases, the BACS Payment Schemes Ltd Board or the Sponsor
reserve the right to terminate an Originator’s participation in the Scheme at
short notice, notwithstanding the disruption which may occur. Every effort will
be made to give sufficient notice (minimum of 3 months) to enable an
Originator to make alternative arrangements. However, the giving of notice in
this context is not an obligation assumed by the BACS Payment Schemes Ltd
Board or the Sponsors and they cannot accept under any circumstances
liability for any loss, which an Originator may suffer as a result of termination
from the Direct Debit Scheme.
Should an Originator wish to appeal (“Appeal”) its termination from the
Direct Debit Scheme (howsoever caused), it must notify the BACS Payment
Schemes Ltd Board (“Notification”) within 14 days of receiving notice of its
termination from the Direct Debit Scheme.
Upon Notification, the BACS Payment Schemes Ltd Board will, by written
notice to the City Disputes Panel Ltd. (“the Appointer”) request the Appointer
to nominate an appeal panel (“Panel”) to hear and determine the Appeal.
VERSION 2.2 - EXIT FROM THE SCHEME | 3
The Panel shall consist of three individuals who, in the opinion of the
Appointer are suitably qualified members of or professional advisers to the
banking and/or financial services industry in the City of London and who are
also independent of the Originator, the Sponsor and the BACS Payment
Schemes Ltd Board.The Appointer may but shall not be obliged to consult the
Originator, the Sponsor or the BACS Payment Schemes Ltd Board before
nominating a Panel. Within 14 days following their nomination, the Panel shall
appoint one of their number to preside over the Appeal (“the Chair”).
The Appeal shall be a re-hearing of the original determination of the BACS
Payment Schemes Ltd Board or the Sponsor (as applicable) and shall be
conducted in accordance with such process as the Chair deems fair and
appropriate, (and so far as he/she is advised, in accordance with the Human
Rights Act 1998).
The Panel shall arrive at its decision by majority vote and the Panel’s decision
shall be final and binding on all parties to the Appeal.The Panel’s decision may
also include a ruling as to how the costs of the Appeal (including the
remuneration of the members of the Panel) shall be borne between the
Where it says in extreme cases, does that refer to not complying with the scheme as in the paragraph above?
Yes thank you for your help.