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Recent appeal court case law in Germany gives useful guidance to banks on when an insolvency administrator may successfully dispute a debit made from an insolvent debtor’s account under a direct debit authorisation. Under previous Federal Supreme Court case law, a bank customer is taken to have impliedly approved direct debits of regular payments in similar amounts unless the customer objects to the debits promptly. Recent case law from the Higher Regional Courts has provided more detailed guidance in this area.

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Region: Germany
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