Old acquaintance set up direct debit on my account

oic3120

Advice please Experts...

A direct debit from Swintons appeared on my bank statement. I didn't have any business with Swintons so I phoned them up about it. Since I wasn't the named customer on their account records they refused to discuss the matter - even though they acknowledged the direct debit reference number I was able to quote. I told them I would be cancelling the direct debit.

My bank (sic), Nationwide, has cancelled the direct debit and refunded my money.

I phoned Swintons again and asked if they could now give me some information as I suspected fraud. They told me the name of the policyholder. The name is familiar to me as an acquaintance from a few years ago - but it isn't an uncommon name. They did not give me an address.

Morally I think I should pursue the matter BUT...

Do you think I will gain anything (stopping it from happening again, stopping this person from doing it to my account again) from finding out how this has happened? If so what steps should I take?

Or, in your experience, would I just be wasting my time?

Thank you for your comments.

olly300

Don't bother.

All the information you get should be forwarded to Nationwide.

Nationwide will block that person from using your account.

innovate

report it to the Police.

oic3120

Thank you for your replies.

If reported to the Police would they actually do anything or just record it?

maninthestreet

olly300 wrote: »

Don't bother.

All the information you get should be forwarded to Nationwide.

Nationwide will block that person from using your account.

You mean unless you specifically tell Nationwide, they'll let any Tom, !!!!!! or Harry use your bank account?

pqrdef

maninthestreet wrote: »

You mean unless you specifically tell Nationwide, they'll let any Tom, !!!!!! or Harry use your bank account?

From the OP's case, it would appear so.

Swinton is responsible for being satisfied as to the customer's ID before sending the DD mandate request to the bank, since the bank gets no signature or password or card details or anything else to go on.

Not usually a problem with insurance, because there isn't usually much point in buying insurance under a false ID.

But it's pointless if there's no comparison of the insurance customer's identity with the account-holder's.

No wonder they say this kind of fraud is on the increase. And of course the banks try to make this our problem, not theirs.

bengal-stripe

oic3120 wrote: »

A direct debit from Swintons appeared on my bank statement......They told me the name of the policyholder. The name is familiar to me as an acquaintance from a few years ago - but it isn't an uncommon name.

Most likely explanation is Swinton (who set-up the DD) or the policy holder made a keying error, so account number was wrong by a digit and by pure chance it ended-up on your account.

Fraud is unlikely, as a insurance policy which does not get paid is of little use to a policy holder, should a (covered) event occur at some point in the future. (It is not like a purchase, which gets delivered the next day and is of instant use to the fraudster.)

You say the policy holder's name is not uncommon, so that 'Joe Smith' might not be the Joe Smith you used to know (and would 'your' Joe Smith have knowledge of your bank account).

C**k-up, not conspiracy is a more likely explanation.

InsideInsurance

bengal-stripe wrote: »

Fraud is unlikely, as a insurance policy which does not get paid is of little use to a policy holder, should a (covered) event occur at some point in the future.

You've never worked in insurance counter fraud have you?

For Motor it is a fairly common trick because you can immediately use the certificate to release an impounded vehicle, tax a vehicle etc even if the policy is subsequently cancelled for non-payment/ fraud.

Likewise if the certificate of insurance is not recovered then there is a chance that another fake party can claim the vehicle injured them and the insurer may be deemed the RTA insurer despite the indemnity issues over payment and thus have to settle the bogus claim.




to the OP - you could report it to the police, the police wont be interested. They will tell you there is an agreement that banks/ insurers investigate and pass it to the police after that.

You have informed Swinton, not surprised they arent interested, and it is really up to them what they want to do about the potential fraud on their books.

Nationwide is the main one you need to deal with as they are the ones that you are actually a customer of and that can fully talk to you etc. They likewise can suggest what they can do to assist you and prevent your account being raided by fraudsters