Repayment & SEPA Direct Debit Agent AI

INVOKED WHEN: Disbursement Agent AI confirms disbursement and triggers the SEPA Direct Debit mandate setup

• –Reads the loan account details — borrower's bank account, IBAN / BIC, instalment amount, and debit date — and submits the SEPA Direct Debit mandate registration via the SEPA scheme. Tracks the mandate registration through the processing cycle (typically 7–10 working days) and confirms activation before the first instalment due date.
• –Where the first instalment due date falls within the mandate processing window, flags this to the Disbursement Agent AI and finance team so an alternative collection arrangement can be made for the first instalment.
• –Validates account details via penny drop before mandate submission — a mandate submitted to an incorrect account will fail at activation, delaying setup by a full registration cycle.

INVOKED WHEN: a SEPA Direct Debit debit returns with a non-payment reason code

• –Reads the SEPA Direct Debit return reason code (ISO 20022) and classifies the bounce: Insufficient Funds (AM04 — primary collections signal), Technical Failure (MS03, bank system errors — retry without collections contact), Incorrect Account Details (AC01, AC04 — mandate correction required), or Mandate Refused / Revoked (MD06, MD01 — immediate human review, no automated retry).
• –For Insufficient Funds: executes the configured retry schedule — day 3 first retry, day 7 second retry — and routes a bounce notification to the Early Bucket Caller AI for borrower contact. For Technical Failure: retries on the next working day without borrower contact. For Mandate Suspended: routes to collections manager and legal team immediately with no retry.
• –Logs every bounce event with cause classification, retry schedule, and contact routing decision.

INVOKED WHEN: the SEPA scheme confirms a successful SEPA Direct Debit debit for a loan account

• –Reads the successful debit confirmation from the payment scheme and posts the repayment to the correct loan account in CBS — allocating the repayment against the oldest outstanding instalment in line with the loan agreement's repayment waterfall.
• –Reconciles the CBS posting against the daily SEPA Direct Debit settlement report from the sponsor bank. Any debit confirmed by the scheme but not settled by the bank within the clearing cycle is flagged to the finance team as a settlement exception.
• –Updates the DPD position in CBS immediately on posting — a successful repayment that clears an overdue instalment reduces the DPD count, which may affect the account's status in the Early Bucket Caller AI's daily work-list.