MSE News: Halifax axes £5 monthly payments to overdrawn current account holders

JimmyTheWig

Consumerist wrote: »

The question, as I understand it, is can an individual set up a direct debit.

They can't.
That's why they are instructing Tesco to set one up for them.

The confusion is that the process of instructing Tesco to set up a direct debit looks remarkably similar to them setting one up themselves.

innovate

JimmyTheWig wrote: »

They can't.
That's why they are instructing Tesco to set one up for them.

The confusion is that the process of instructing Tesco to set up a direct debit looks remarkably similar to them setting one up themselves.

'ere we go, I knew we'd get to splitting hairs before long.

Consumerist

JimmyTheWig wrote: »

They can't. That's why they are instructing Tesco to set one up for them.

Thanks Jimmy.

So Tesco is collecting payments from Halifax, and these payments will be credited to Tesco customers' bank accounts. Have I got that right?

innovate

Consumerist wrote: »

I've made no such claim. If you think so, please tell me where.

I think you did, here:

Consumerist wrote: »

But this will not create a direct debit - it's just an electronic transfer.

Consumerist

Do you mean this post?

But this will not create a direct debit - it's just an electronic transfer.

To create a direct debit I have always needed to sign, electronically or on paper, an authority for someone, normally a business, to collect unspecified amounts on unspecified dates.

I'm not sure that an individual can "set up" a direct debit

I don't see anything there about savings accounts.

Consumerist

Quite frankly, I suspect that unless Halifax has a copy of a direct-debit authority (i.e. subject to the direct-debit guarantee), they will not regard it as a direct debit.

But only time will tell.

noh

Consumerist wrote: »

Quite frankly, I suspect that unless Halifax has a copy of a direct-debit authority (i.e. subject to the direct-debit guarantee), they will not regard it as a direct debit.

But only time will tell.

No.
The bank does not have a copy of the DD authority. That is held by the originator, Tesco savings in this instance.

Consumerist

noh wrote: »

No.
The bank does not have a copy of the DD authority. That is held by the originator, Tesco savings in this instance.

How does the direct debit become associated with an account at Halifax?

innovate

Consumerist wrote: »

How does the direct debit become associated with an account at Halifax?

You enter your [Halifax] sort code and bank account number. Same as you would do with any direct debit authorisation.

noh

Consumerist wrote: »

How does the direct debit become associated with an account at Halifax?

http://www.bacs.co.uk/Bacs/Businesses/DirectDebit/Services/Pages/PaperlessDD.aspx