Which chargeback method has which deadline, how to justify the complaint and what the registration in the insolvency schedule has to do with it.
When a campervan rental company or motorhome dealer becomes insolvent, the payment method often determines whether you get your money back. Chargebacks via direct debit, credit card, and PayPal follow three different sets of rules with three different deadlines. Rogert & Ulbrich explains which method to follow, in what order, and how it relates to filing a claim.
Not all chargebacks are created equal: three approaches based on three principles
The term "chargeback" is commonly used for any type of reversal of a transaction. However, legally, it encompasses three completely different mechanisms. Only one of these is enshrined in law; the other two are based on private regulations. Anyone who fails to distinguish between them will incorrectly justify their complaint and waste valuable time.
The three routes at a glance:
- SEPA Direct DebitThe right to a refund is based on Section 675x of the German Civil Code (BGB) and your bank's direct debit terms and conditions. For basic direct debits, you can request a refund within eight weeks of the debit without giving a reason. If no mandate was issued, the claim is governed by Section 675u of the German Civil Code (BGB), and the notification period is thirteen months according to Section 676b of the German Civil Code (BGB).
- credit cardThere is no legal right to a chargeback for an authorized payment of a fixed amount. The rules of the card networks apply, which provide their own grounds for complaint in cases of non-performance. The transaction will be processed through your card-issuing bank.
- PayPalBuyer protection is a contractual program under PayPal's terms of service, not a legal entitlement. It has a relatively long duration, but includes exclusions that can be particularly relevant for rental and travel services.
- TransferFor traditional bank transfers, there is no chargeback process. A payment reversal requires the recipient's consent, which an insolvent provider practically never grants. Anyone who has already made a transfer must therefore immediately pursue other claims.
First, check your bank statement and clarify how the payment was actually processed. A PayPal payment funded via direct debit may have two possible outcomes with different deadlines.
SEPA Direct Debit: the fastest way with the shortest deadline
If you have granted the supplier a SEPA direct debit mandate, reversing the direct debit is the simplest and quickest way to proceed. With the SEPA core direct debit, which is the standard in consumer transactions, you can request a refund of the debited amount within eight weeks of the debit date without having to provide a reason. The bank will then issue a refund, and any dispute regarding the legitimacy of the charge will take place afterward.
These eight weeks are the shortest of all chargeback periods and expire without any reminder. This is particularly insidious in the case of campervan bankruptcies, because there are often several months between the deposit payment in winter and the planned travel date in summer. By the time the insolvency becomes public, the deadline for the first debited deposit has often already passed, while it is still running for later installments.
Two constellations can be distinguished:
- Mandate grantedThe eight-week period applies from the date of the charge. After this period, an unconditional refund is excluded, and you are limited to pursuing material claims against the provider.
- No mandate grantedIf a payment was debited without your authorization, it is considered an unauthorized payment. Your right to a refund is based on Section 675u of the German Civil Code (BGB), and you must report the unauthorized charge within thirteen months in accordance with Section 676b of the BGB. The bank bears the burden of proof regarding authorization.
Please check each individual charge separately according to its posting date. For further information on banking law issues concerning payments and refunds, please visit our website. banking law.
Credit card: Chargeback according to the rules of the card schemes
There's no specific clause you can invoke to reverse an authorized credit card payment. The process involves the card network's rules, which typically have their own categories for handling disputes. For campervan insolvencies, the relevant category is "non-performance": you paid, but the vehicle was never delivered or the rental agreement was never fulfilled.
The timing of the claim is crucial and often misunderstood. For services that are to be provided in the future, the claim period is generally not based on the debit date, but rather on the date the service should have been provided. Therefore, someone who pays for a July trip in January and learns of the insolvency in June is not automatically too late. Additionally, the regulations stipulate absolute upper limits from the transaction date. Since card schemes continuously update their rules, the specific applicable deadline should be checked with the card-issuing bank in each individual case.
These documents should be included in the complaint:
- Booking confirmation: Contract or confirmation with the agreed service date and the booked vehicle.
- Payment receipt: Card statement with the specific transaction, amount and merchant name.
- Proof of non-provision: Cancellation by the supplier, insolvency announcement, letter from the insolvency administrator or press report with date.
- Attempt to make contactThe regulations regularly require proof that you have previously attempted to obtain a refund from the contractual partner. In the case of insolvency, a documented request to the provider or the administrator is sufficient.
Formulate your complaint as a specific instance of non-performance, including the date, and not as general dissatisfaction. The bank's classification will depend on the justification you provide.
PayPal Buyer Protection: what it offers and where its limits lie
PayPal Buyer Protection is not a legal right, but a program governed by the provider's terms of service. With a period of approximately 180 days from payment, it has the longest of the three protection periods and is therefore often the last remaining option. However, it also has the most exclusions.
Three points are practically crucial:
- Payment methodPayments made as "money senders to friends and family" are excluded from buyer protection. Sellers who push this payment method are circumventing the protection. This is a warning sign you should take seriously.
- Type of serviceWhether rental and travel services are included depends on the applicable terms of use. These may be subject to restrictions and changes. Please check the version in effect at the time of payment.
- Revival of the demandAccording to case law, the seller's original claim for payment is revived if PayPal grants buyer protection and reverses the payment. In insolvency proceedings, this means that the insolvency administrator can generally pursue this claim if you are not materially entitled to the payment. This is usually not the case if the service has definitively not been rendered, but this scenario should be understood.
Open the dispute in your PayPal account and upgrade it to a claim within the deadline; otherwise, the process will be closed automatically. For information on claims related to fraudulent offers, please see our website. Online fraud.
The correct order and interaction with the insolvency table
The three options exist side-by-side, but they have different expiration times. Therefore, the order is not determined by which option is most likely to succeed, but by which one expires first. Direct debit reversals, with their eight-week timeframe, come first, followed by card disputes, and finally PayPal buyer protection.
The insolvency proceedings run parallel to this. After the proceedings have been opened, you must register your claim with the insolvency administrator within the prescribed time limit, as stipulated in Section 174 of the German Insolvency Code (InsO). This registration is essential, even if you are pursuing a chargeback, because its success is not yet certain at this stage. The claim is a simple insolvency claim under Section 38 of the German Insolvency Code (InsO) and is therefore subject to distribution quotas.
There are two things you need to keep in mind:
- No double satisfactionIf the chargeback was successful, your loss is settled to that extent. The claim registered in the table must then be corrected or withdrawn accordingly. Anyone who retains both risks having to make further claims.
- Economic riskIn the case of card and PayPal payments, the risk of a chargeback is generally borne by the payment service provider or the processing acquirer, not the insolvency estate. With direct debits, however, an amount that the debtor has already received is returned. Therefore, whether and in which circumstances a chargeback is legally valid under insolvency law must be examined on a case-by-case basis, depending on the payment method.
Pursue both avenues in parallel and document each step with the date. We have discussed further recovery options after a supplier's insolvency in our article. Camping provider insolvent compiled.
If the chargeback is rejected: what else can you do?
A rejected claim is not the end of the story. Card system rules provide for a second attempt if the merchant or their acquirer objects to the chargeback. At this stage, the quality of the documentation is crucial. Rejection often occurs because proof of non-performance or the agreed-upon service date is lacking, not because the claim itself is invalid.
These starting points remain:
- Resubmission: Complaint with supplementary evidence, in particular regarding the agreed service date and the insolvency announcement.
- Claims against the bankUnauthorized payments give rise to a statutory right to reimbursement under Section 675u of the German Civil Code (BGB), which can be enforced in court if necessary. The burden of proof for authorization lies with the payment service provider.
- Mediation and SupervisionFor disputes with banks and payment service providers, arbitration boards are available; in addition, there is the possibility of filing a complaint with the Federal Financial Supervisory Authority.
- Linked contractIf the vehicle was financed, objections against the financing bank may be considered under Sections 358 and 359 of the German Civil Code (BGB). This avenue is independent of the chargeback.
- People involvedIf advance payment was still demanded even though insolvency was already established, claims against the management may be considered.
Don't let a rejection go unchallenged; instead, examine the reasons for its failure. You can find more articles about vehicles in our section. Automotive, We will address general questions about the vehicle in the traffic law.
Rogert & Ulbrich – Your lawyers for chargebacks and debt collection
Rogert & Ulbrich represents consumers nationwide at the intersection of banking law, payment services law, and insolvency law. Attorneys Dr. Marco Rogert and Tobias Ulbrich and their team are familiar with the processes at banks, card issuers, and payment service providers, as well as the arguments used to reject complaints.
We will assign your payment to the correct chargeback process, ensure compliance with deadlines, formulate a legally sound complaint, and simultaneously register your claim with the insolvency administrator. If the chargeback is rejected, we will examine the claims against the bank, payment service provider, financing institution, and individuals involved, and, if necessary, pursue them through legal action.
Is your campervan rental company or motorhome dealer insolvent and your payment missing? Contact us for a free consultation and let us review your outstanding payments.
