Unauthorised standing order mystery

Conradh103

I wonder if forum members could help unravel a mystery and possibly warn others to be aware?

I run a small Internet business advertising wheelchair accessible property. It's very small - basically me and a laptop! I have a business account with Barclays and in July I noticed that a direct debit had been set up on the account by Legal and General insurance. This was completely unauthorised. The business doesn't have anything that needs insuring and I certainly hadn't set it up. I rang Legal and General who were unable to explain why or how the standing order had been set up. However they refunded the initial payment promptly (£17) and I thought that was the end of the matter.

At the end of September I noticed that another unauthorised direct debit had been set up on the account this time by Budget Insurance for £20. I contacted Barclays who promptly called back the payment but seemed unable to explain how it had been possible for a company to access my account and set up a monthly standing order without authorisation or any contact with myself. They did ask if I publish account details and I do give sort code and account number both on invoices and on the website to facilitate payments.

I'd be really grateful if anyone can throw any light on why and particularly how the standing orders are being set up? It also seems likely that if it's happening to my account it will be happening to other people's accounts as well.

Many thanks

McKneff

sorry Conrad, cant help but yu would be better removing your full name from your signature at the bottom, It really is better for you to be anonymous on the boards.

whitewing

Is it a standing order, or is it a direct debit? There is a difference and the action you take may differ.

It may well be an innocent person (customer of L&G) transposing digits of their bank account and ending up with yours by accident. That is why I imagine it has happened twice.

If it really is a S/O then your bank should have a copy of the mandate and they can check this out.

If a DD, then they may have been provided details electronically by L and G.

Conradh103

Thanks - have realised both unauthorised instructions are direct debits.

I'm not sure accidental transposing of digits is likely explanation when two different insurance companies were involved?

pmduk

Apparently some people have set up insurance policies in order to get the cashback.

bengal-stripe

But wouldn't that cashback not end-up in Conrad's account?

Buzby

Direct Debits are the spawn of the devil. All the merchant has to do is say you authorised it, and that's good enough for your bank. This cannot happen with a Standing Order, which requires you signature.

Now, a complain to your bank will get it reversed, BUT there is a time limit to this - so if you were abroad (for example) and returned after X months, the bank could reject your request saying you should have advised them in a 'reasonable' time! So don't delay, and if you have online access to your account, delete the mandate they set up.

Conradh103

Interesting! But who would benefit from the cashback? Would it have to be insurance company employees? Its easy enough for anyone to get my account details. Is that really all you need to set up a direct debit??

YorkshireBoy

Buzby wrote: »

BUT there is a time limit to this - so if you were abroad (for example) and returned after X months, the bank could reject your request saying you should have advised them in a 'reasonable' time!

Where X = 13 or more

http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf (page 16)

DCFC79

Conradh103 wrote: »

Interesting! But who would benefit from the cashback? Would it have to be insurance company employees? Its easy enough for anyone to get my account details. Is that really all you need to set up a direct debit??

Going by the direct forms ive just had a look at online, the banks address is asked for and a signature are asked for as well.