Direct Debit Fraud

pinkykat

Yesterday my daughter realized that she had money of £189. taken out of her account via. direct debit from Virgin.
We went into Barclays Bank and they said that we had to get intouch with Virgin and find out what has gone on.
We phoned Virgin and my daughter who had this fraud had to give all her details to them. Which I might say was scary for her because of the fraud.
They told her that Barclays should of given back the money onto her account and dealt with it.
We went back to Barclays and after trying to sort it with three different members of staff.
They filled out a form and said that the monies would be back into her account within 48 hrs.
Because the fraud was her sort code and account number not the card number. I asked could she transfer all her direct debits and wages and open a new current account which is a Debit account.
They said that she couldnt have a Debit account and only could open a cash account. I asked why she could not have the same and they said that her credit rating is not good. With this fraud happening she did not want to keep the account she had so said yes to it because she is payed weekly.
They said that she can do all the same things with a cash card as she could do with her Debit card is this correct?
They said that the only difference is that you dont get a cheque book and cannot have an overdraft.

jalexa

pinkykat wrote: »

Yesterday my daughter realized that she had money of £189. taken out of her account via. direct debit from Virgin.
We went into Barclays Bank and they said that we had to get intouch with Virgin

It is not fraud if it is an "error" and it is not in the account holders interest to represent "error" as fraud.

A bank is bound to refund a direct debit not subject to setup or collection notice "immediately". On that point Virgin are quite right. The account holder is entitled to raise a formal complaint with Barclays about the competence of their treatment.

ILW

Where does the fraud accusation come from?

themull1

The Bank have to do an immediate refund, then they have to claim the money back themselves, ask the Bank for an Indemnity claim to be done immediately. They have to do it.

pinkykat

Thanks for your response the fraud is that someone had used her bank account number and sort code.
This is what virgin said.
Barclays should not of authorized it with wrong name and address given.
They have said that they would given her monies back within 48hrs.
She did not feel safe having the same account number to which barclays the only thing she could do was open another current account. When they went to open one the lady said that she could only have a cash account and not a debit card because of her credit score. My daughter opened the cash account because she is paid weekly and want it sorted.
I feel that she should of been able to have the same kind of account I dont understand what the differences are to them neither does she.
she also, doesnt understand why her credit score is not good enough.

dr_adidas01

pinkykat wrote: »

Thanks for your response the fraud is that someone had used her bank account number and sort code.
This is what virgin said.
Barclays should not of authorized it with wrong name and address given.
They have said that they would given her monies back within 48hrs.
She did not feel safe having the same account number to which barclays the only thing she could do was open another current account. When they went to open one the lady said that she could only have a cash account and not a debit card because of her credit score. My daughter opened the cash account because she is paid weekly and want it sorted.
I feel that she should of been able to have the same kind of account I dont understand what the differences are to them neither does she.
she also, doesnt understand why her credit score is not good enough.

So you have now closed a bank account that has a debit card for one that will only allow you to have a cash card meaning she will have to take cash out to pay for everthing in shops and supermarkets....

The bank could have quite easily put a mark on her account to stop any direct debit in the wrong name being set up. They admited there error and are going to refund the money.

I would have left it at that and then checked online every few days to see if any other direct debits were set up.

jalexa

pinkykat wrote: »

She did not feel safe having the same account number

That is an irrational concern. Anybody who receives a cheque knows the details. It is hardly a secret and not a security risk.

What I would say is the account holder is getting p*ss poor advice from the Barclays branch staff. Maybe think about another bank.

innovate

I tend to agree with others - what evidence is there of fraud? Someone may have accidentally used your daughter's account number and sort code. You are mistaken if you think anyone checks that the numbers match a name and address on direct debits (or faster payments). So such errors will probably only be spotted by the account holder once a wrong debit has been made.

Under the Direct Debit guarantee, a bank has to re-imburse any payments that the account holder says they have not authorised. So the re-imbursement from Barclays does not suggest there was any fraud.

Personally, I think your daughter over-reacted when she asked for a new bank account but what's done is done.

To get to the bottom of her bad credit score, your daughter should get her credit files - if there is something wrong on them, she can ask for a 'notice of correction' to be filed. For more, see http://www.moneysavingexpert.com/loans/credit-rating-credit-score/

ILW

Which part of Virgin was this money paid to, eg Phones, Flights, Train tickets, concerts etc etc?

JohalaReewi

pinkykat wrote: »

Yesterday my daughter realized that she had money of £189. taken out of her account via. direct debit from Virgin.
We went into Barclays Bank and they said that we had to get intouch with Virgin and find out what has gone on.

If Virgin didn't notify your daughter in advance (at least 10 days) that they were going to take £189 by direct debit, then the direct debit is in error and your daughter is due a full and immediate refund from Barclays under the Direct Debit Guarantee Scheme.

However, some naughty banks like to pretend that the Direct Debit Guarantee Scheme doesn't apply to them.

If Virgin took the money in error, then it sounds like you need to make an official complaint to Barclays about the wrong information you were given.

JohalaReewi

themull1 wrote: »

The Bank have to do an immediate refund, then they have to claim the money back themselves, ask the Bank for an Indemnity claim to be done immediately. They have to do it.

Almost. The customer asks the bank for a refund under the Direct Debit Guarantee Scheme (not an Indemnity claim - this is something different and is not immediate).