§ 4-32. The bank must refund the amount quickly when the customer disputes liability

This section gives the customer a quick right to get the money back while the dispute is ongoing. If the customer disputes being liable for an unauthorised payment under § 4-30, the bank must refund the amount immediately and no later than by the end of the next business day. The bank must also compensate for the loss of interest from the time of the debit. The claim applies only if the customer gave notice in time under § 4-24 second paragraph. The excess under § 4-30 second paragraph is not included and can be withheld.

The second paragraph gives the bank a way out if it suspects fraud. If the bank has reasonable grounds to believe that the customer has acted fraudulently, it does not have to refund, but only if it takes the case to court or to an approved complaints board within four weeks of the customer's written objection. The writ of summons or complaint must be in writing and state the grounds. If the case is dismissed, a new four-week deadline starts on the day the bank learned of the dismissal. If the court or the complaints board concludes that the suspicion was not reasonable, the bank must pay late payment interest from the day the amount should have been refunded.

The third and fourth paragraphs concern who ultimately bears the cost. If a payment initiation service provider is involved, the account provider is responsible for the refund. If the payment initiation service provider is itself responsible for the transaction, it must immediately indemnify the bank on request. The bank can also demand the money back from a third party who has received it without being entitled to it. If the bank recovers more than its own loss, the surplus must cover the customer's share of the loss.

Example: The customer disputes a debit and has reported it in time. The bank must then refund the amount by the end of the next business day, except for any excess. If the bank has a reasonable suspicion that the customer is behind it, it can refrain from refunding, but it must then have brought legal proceedings or filed a complaint against the customer with an approved complaints board within four weeks.

This section depends on the neighbouring rules. The liability rules in § 4-30 decide whether the customer can be held liable at all, and § 4-31 allows the liability to be reduced. Section 4-33 governs the banks' ability to claim compensation (erstatning) from whoever caused the loss.