Paying for someone elses Home Ins

derryone

Hi

This is my first post on here and any help would be greatly appreciated. I m not sure if it is the correct section.

I discovered yesterday while sorting out my account that two amounts where being taken out each month for one home insurance policy. I phoned halifax (who the home ins policy is with) expecting a simple problem with dd and it would be sorted. However when on the phone I was told that a sum of money has been deducted from my account for the last 6 months for another home policy on a different house.

Halifax were adamant that they had not made a mistake and told us that we must know this other person, even though the address is in the midlands and we live in Northern Ireland.

The guy on the phone then said they would refund all the payments and the matter could draw to a close. It totals just over £250 but it is not the money that is annoying me so much. The fact that a bank can debit my account with no dd mandate signed is a breach of security and I am worried about identiy theft.

They are to phone back today after I persisted that they should offer a better explanation of what happened.

Has anyone else ever had this happen? Or anyone have any advise as to what I should do to take the matter further?

Thanks in advance, any help would be much appreciated.

brokeinyorkshire

I used to work in their call centre and this is a regular occurence.

Is this a Direct Debit? If so the bank can pull the money back as a Direct Debit Indemnity.

As for how it happened. At a guess, human error. Somebody keyed a wrong number when entering the payment details or something like that.

J

derryone

Thanks for your reply. Yeah they are direct debits and I have been promised the money back. I don't understand how it could be human error when I have to sign a direct debit mandate as my account is not Halifax. They have debited my account without this.

missile

derryone wrote: »

Thanks for your reply. Yeah they are direct debits and I have been promised the money back. I don't understand how it could be human error when I have to sign a direct debit mandate as my account is not Halifax. They have debited my account without this.

You sign the direct debit, but someone has to enter the data. They made a mistake. I had an issue with my bank when I was paying for someone else's Saga credit card by DD.

I had a similar battle with the bank's fraud department "you must have authorised" then "how come it took you four months to realise". I complained in writing and eventually got the money back, but no appology.

System

It is no longer required to sign a Direct Debit Mandate. Everything can be done electronically via the internet or over the phone by passing Data Protection questions to validate your identity.

As others have already said, it will have been a simple typing error at the bank when entering the account number.

The bank should have already sorted out the correct account number by contacting the home insurance company.

The Direct Debit Guarantee makes sure you get your money back immediately when any errors are made, so there is no other issue you need to worry about.

alanq

OK someone can mistype an account number but what are the chances of the incorrect account holder having the same name as the correct one? Surely there should be at least that much checking!

That said one should check transactions on ones current account frequently to spot errors and frauds ASAP. The Ts&Cs of the account probably include an obligation to do so.

Nationwide:
"you should check statements regularly and alert us to any irregularities".
One for the legal folks to argue. Is once a year "regular"? Is daily some weeks and only once during other weeks not "regular"?

InsideInsurance

It can be a simple typing error anywhere along the flow of information, possibly at the bank or possibly at the merchant or even with the other customer, rather than anything malicious.

It could have a signed mandate and be a typing error from transcribing it or someone with really bad handwriting. It could be a mandate set up electronically which would normally have been confirmed in writing but if 5% of people check it matches with their account I would be highly surprised.

One of my clients once had a computer glitch causing payment details on letters being corrupted. Over 100,000 letters were sent with the wrong details. 3 people called to say their letter had the wrong details.

ChiefGrasscutter

alanq wrote: »

OK someone can mistype an account number but what are the chances of the incorrect account holder having the same name as the correct one? Surely there should be at least that much checking!

Names are not checked -partly I suspect because they can be mistyped even more easily and abbreviated such that they will never match.
The computer is simply deducting from account No, Sort code No.
Most likely the individual taking out the house insurance had put in the wrong account No into the online form and the computer had simply activiated as a DD.
DD's are now mostly electronic and are not physically signed.

As said many times before - check your bank statements evey month

pmduk

It's mind-boggling just how much money is being debited from people's accounts in error each month. The Direct Debit Guarantee is great but it doesn't work if people don't check bank statements. OP, you've had a lucky escape, I hope you learn from it

derryone

Thanks for all the replies. Have to claim the money back from my bank using indemnity form. 3 heated phone calls later offered £100 compensation. Still ridiculous the thought of someone being able to put your bank details in a form and it deducting direct debts without signing anything.