Who can set up a direct debit on someone else's a/c

Justi

Hi
Can anyone tell me the rules for who can set up a direct debit on someone else's account?

My elderly mother was recently phoned by a charity and talked into giving them £10 a month by direct debit. She gave her bank a/c no. and sort code over the phone, but then had a sleepless night wondering whether they were fraudsters or not. In fact they are genuine, but this left me wondering whether anyone can set up a DD on an account simply by knowing the account holder's name, a/c no. and sort code. Presumably I can't just walk into my bank and say here are some account details now please set up a DD for me to draw money from this person? But if not then how does the charity manage to do it?

It gets a bit worse in my mother's case. She called her bank (Lloyds) to discuss her fears and they used the opportunity to sell her £7 a month ID fraud insurance! Nice one Lloyds - especially for someone in her 70s who only ever has max £2000 in her current a/c!

I'm really grateful for any thoughts or advice - thanks all!

RayWolfe

Yes you can set up a DD if the account holder give permission. Equally, the account holder can stop it by instructing the bank.

CLAPTON

no, in general only authorised companies can set up DD to withdraw money from your a/c

so you could not, for example set up a DD with a friend so you could withdraw money from their a/c but most companies can do so and they can do so electronically and without written authorisation

Extant

Direct Debit Originators have to be "sponsored" by a bank, who then take indemnities etc. It's relatively tight as to who can originate, and it's not very easy to do so.

blued

If you haven't done already then get your mother to call and cancel the insurance under the 14 day cooling off period.

soolin

You don't even have to worry about any cooling off period, the direct debit guarantee means that the DD can be cancelled at any time by the account owner.

Justi

Thanks to all for explaining. I feel better knowing that there's a rigorous process for DD originators. My mother will be cancelling the insurance (but not the DD as it was a genuine charity she wants to support).