§ 4-28. The bank's liability when the payer initiated the payment
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- The payer's (betaler) bank is responsible for ensuring that payments the payer initiates are carried out correctly.
- Liability passes to the recipient's bank when the payer's bank documents that the amount arrived on time.
- Where the bank is liable, the amount must be refunded and the account restored to its correct position, with interest.
- The payer can ask the bank to trace the payment.
The text of the law (unofficial translation)
§ 4-28. Liability for a transaction initiated by the payer
What does this mean?
This section applies to payments that the payer initiates, for example a transfer from online banking. The first paragraph makes the payer's bank liable to the payer for ensuring that the payment is carried out correctly. Liability passes on if the bank can document that the amount was credited to the recipient's bank within the deadlines in § 4-11. In that case, it is the recipient's bank that is liable to the recipient. The deadlines are short. A domestic payment in kroner must, for example, be completed on the same business day (virkedag), while other payments within the EEA (EØS) can take up to four business days.
The second paragraph sets out what liability involves. The amount must without undue delay either be returned to the payer or made available to the recipient. The account must be put in the position it would have been in without the error, including interest and other costs. The 13-month deadline in § 4-24 second paragraph applies correspondingly, so a claim for correction must be made within that deadline.
The third paragraph governs interest. Interest calculation for the payer's account must start no later than the day the amount was debited. For the recipient's account, the date must be the one that would have applied if the payment had been carried out correctly. The fourth paragraph gives the payer the right to ask the bank to trace a payment. The bank must then immediately try to find it and report the result as soon as possible.
The fifth paragraph applies to payments initiated through a payment initiation service provider. In that case, it is the account provider that must refund the amount if the payment was not made or was defective, and where applicable restore the account to its correct position.
This section has a number of neighbouring provisions. The customer (kunde) cannot require the bank to be liable for a payment that went to the wrong number, because § 4-26 gives the bank an exception when it has followed the account number given. When the recipient has initiated the payment, § 4-29 applies instead. Sections 4-30 to 4-32 deal with unauthorised transactions and reduction of the customer's liability.
- § 4-11How long a payment between banks can take
- § 4-24The customer's duty to report misuse and errors, and the deadline for correction
- § 4-26Wrong account number: who is liable and what the bank must do
- § 4-29The bank's liability when the recipient initiates the payment
- § 4-33The banks' right of recourse (regress) when someone else caused the loss