Direct Debit Fraud - What else should we do?

pinkteapot

MrTeapot and I bank with HSBC. We have a joint current account, with a debit card each, and MrTeapot also has an HSBC credit card.

The credit card is paid off through online banking each month, appearing as a 'BP' transaction (internal transfer?).

Just logged in to see that two days ago a DD was paid out, for £7.41, with the text "HSBC CARD PAYMT".

I called HSBC, and they said it was a DD set up to pay an HSBC credit card in the name of MrTeapot. :eek: Neither of us has ever set up such a DD - they said this one was set up on 2nd August.

We've registered it as fraudulent. HSBC will investigate and hopefully return the money (only £7.41 so not the end of the world). We've cancelled the direct debit.

I've told MrTeapot he should get his £2 statutory credit report - am I right in thinking that it will list any credit cards in his name? Concerned that someone has set up a card in his name, and then set up a DD from our account to pay it.

Not sure what else we should do? I've heard of DDs being set up fraudulently before, but I'm not sure what to do. If they set it up online or by phone, do they have our passwords etc? :eek:

Ben8282

Was the DD set up to pay your husbands credit card account or was it set up to pay the HSBC credit card account of somebody else with the same name?

You don't need to get a credit report from a third party to find out if somebody has opened a new second HSBC credit card account in your husbands name. Just check the direct debits using online banking and see if the card number on the direct debit corresponds to your husbands credit card number or ask HSBC!

Surely this DD is listed on your list of DD's??

McKneff

Yes go into the list of DD's on your internet banking and see if it is there.

Ben8282

McKneff wrote: »

Yes go into the list of DD's on your internet banking and see if it is there.

If it is there it will show a reference which will be the card number. If it's not there, then contact HSBC and ask how and why they have paid a DD which is not on your list of DD's.

Have you checked your husband's credit card statement to see if the amount has been credited to his account? This is an obvious step but you make no mention.

Also, if a second credit card account has been opened in your husbands name, how did the fraudster both get your bank details in order to set up the DD and all the necessary information to open a second credit card account in the name of an existing customer who already has an HSBC credit card. (I am assuming here that one person having 2 HSBC credit cards is alllowed????). How did the fraudster then obtain the physical card without access to your post? Why did the fraudster set up a DD .... illogical as you will have been alerted to the problem earlier than if he had simply not paid the bill. Why did the fraudster spend so little on the card to only have a £7.41 minimum repayment? Normally he would use entire credit limit ASAP!

jonesMUFCforever

Could it be that MrTeapot failed to make a minimum payment on time and that HSBC card services have exercised their option of setting off the minimum payment from the current account?

If so - 2 points - 1 if this is what has happened then it is not fraudelent.
2 - More importantly right of set off should only happen if both accounts are in same name, so they could take money from an account in name of MrTeapot but they should not have taken it from a joint account.

OP please advise if you were late in paying in any new reply.

pinkteapot

HSBC said it might have been set up by them to take a minimum payment. But his card was paid on time AND the reference number on the DD did not match his card.

To clarify - yes it was on our list of DDs. Neither of us had noticed it before and I only looked at the list because I saw the money go out.

I have cancelled the DD so it's no longer on the list, but this does mean I can no longer see the card number on it, but it wasn't his credit card or either of our debit cards. As I said, we have no other HSBC cards.

I assumed it was fraud but maybe an HSBC error in setting up the DD which related to someone else's card?

I'll see what HSBC say after they've investigated...

p.s. no credit for that amount on MrT's credit card.