Unauthorised Direct Debits

oliton26

Many organisations have the authority to apply Direct Debits to a private bank account WITHOUT a signed mandate, or telephone/web mandate . Furthermore a charge can be made without permission and notification, if sent, may not have been received prior to the debit being made. These circumstances can apply either through a mistake or fraudulent activities.

My bank has informed me that the bank indemnity will not kick in unless the organisation agrees it is wrong. The cost of attempting to reverse a payment can be very high through the use of premium rate only telephone numbers and may be unsuccesful.

It appears therefor that the DIRECT DEBIT guarantee is worthless.

The banks will not apply a blanket ban on Direct Debits for my account. Is there any other way I can stop these being applied short of closing my bank accounts?

Tony

dunstonh

Many organisations have the authority to apply Direct Debits to a private bank account WITHOUT a signed mandate, or telephone/web mandate .

As has been the case for over a decade. However, it can be revoked if the originator abuses it.

Furthermore a charge can be made without permission and notification, if sent, may not have been received prior to the debit being made.

That is not correct. There is a process for notifying individuals and a required minimum period.

My bank has informed me that the bank indemnity will not kick in unless the organisation agrees it is wrong.

That is not correct. You do have to show that the originator was wrong to some extent but at the point of claim under the guarantee, they originator doesnt have to agree it was wrong. However, if the originator provides information that shows there was no breach (typically some weeks later) then your account can be redebited with the amount.

It appears therefor that the DIRECT DEBIT guarantee is worthless.

The guarantee system works quite well. Although bank staff are prone to try and put you off using it.

The banks will not apply a blanket ban on Direct Debits for my account. Is there any other way I can stop these being applied short of closing my bank accounts?

Stop asking for direct debits to be set up. Companies dont suddenly set direct debits up and decide to debit your account. You have to have given them the details.