Recent rulings by European courts have shifted banking dispute responsibilities, ensuring immediate reimbursement for unauthorized operations and placing the burden on banks to prove negligence.
Court of Cassation rules on bank liability
The Court of Cassation ruled on October 8, 2026, that banks cannot hold customers responsible for gross negligence if they execute operations through means no longer agreed upon. This decision shifts the burden of proof in such cases to the banks.European Court mandates immediate reimbursement
A week later, the Court of Justice of the European Union ruled that immediate reimbursement is mandatory for unauthorized operations, regardless of customer negligence. This decision reinforces the need for banks to act swiftly in such cases.Legal framework for payment services
The Directive (EU) 2015/2366 (DSP2) mandates that payment service providers reimburse customers for unauthorized operations immediately, with limited exceptions. The recent rulings have clarified that gross negligence does not justify delaying reimbursement.Determining authorized or unauthorized operations
Classifying an operation as unauthorized or authorized is crucial for applying the correct legal regime. Unauthorized operations grant customers immediate reimbursement, while authorized operations require the customer to prove the bank's failure in its duty of vigilance.Restitution action and its requirements
The restitution action, allowing banks to recover funds from customers after reimbursement, must be clearly defined. The nature of this action, its procedural requirements, and the burden of proof are areas that French courts will need to address.Implications for customers and banks
Customers now have a guarantee of immediate reimbursement, but they may face legal action from banks seeking recovery. Banks, on the other hand, must ensure compliance with reimbursement deadlines and prepare a strong evidentiary file for potential restitution actions.
