Banco de Portugal confirmed that banking customers have different deadlines for requesting direct debit refunds, depending on the situation. For unauthorized or incorrectly executed operations, the maximum deadline is 13 months from the date of the debit. This deadline applies to consumers and micro-enterprises, and for other customers the terms may vary according to the agreement with the payment service provider.
However, when there is a valid authorization but the amount charged was higher than expected, the deadline is shorter: eight weeks. This scenario applies when the authorization did not specify the exact amount and the amount charged exceeded what the customer could reasonably expect. In these cases, the bank cannot refuse the refund and must return the full amount within 10 business days of receiving the request.
The referenced legislation is article 112 of Decree-Law No. 91/2018, of November 12, which states that communication to the bank must be made as soon as the customer becomes aware of the charge and without unjustified delay. The 13 months represent the maximum deadline, not an authorization to wait. The bank has the responsibility to prove that the authorization existed and was executed correctly, and must refund the customer immediately, at the latest by the end of the first business day following awareness of the situation.
When faced with an unknown charge, the customer should first check the creditor's identification on the statement, as the name shown may differ from the known commercial name. If the charge is not recognized, they should contact the bank immediately, declare that they did not authorize the operation, and request rectification. It is important to note that the refund of a direct debit does not automatically eliminate a valid contract with the creditor, and the entity may demand payment through another means. If the bank refuses a rectification or fails to comply with the legal deadlines, the customer can resort to the Complaints Book, file a complaint with Banco de Portugal, or use extrajudicial and judicial resolution mechanisms.
