Direct debits

spexs

Can a direct debit in my name be paid from an account in my wife's name?

stclair

In a nutshell yes.

Hominu

You mean a bill in your name be paid by someone else? Yes. They don't care. As long as they get their cash they are happy.

In fact, most companies only care about a valid sort code and account number. When I switched my gas bill provider I entered "M Mouse" as the "Account Name". Its worked since January so far.

thenudeone

But (obviously) the person whose name the account is in must authorise the direct debit.

In the olden days that would mean the bank wouldn't set it up unless they had a piece of paper signed by their account holder.

Now that most DDs are set up electronically (many on the web) that can't be enforced any more.

BBC's moneybox recently ran an article about a man who had several spurious DDs appear on his account. He googled his own bank sort code and account number and found it listed on a panama website along with several others, to be used for fraud.

It turns out anyone can set up a direct debit on your account with just these numbers (which appear on every cheque you write and on your debit card), as Jeremy Clarkson found out to his cost http://news.bbc.co.uk/1/hi/7174760.stm

In practice, if you are using someone else's account to set up a DD, it would be good practice to get a formal record of their agreement (eg by email), unless there is already an obvious financial connection with them, otherwise you may received a knock at the door by the boys in blue.

Even if it''s technically possible, organisations may well state that the account the DD is on must be in your name. You may be breaking the T&Cs to use another account.

Hominu

thenudeone wrote: »

Even if it''s technically possible, organisations may well state that the account the DD is on must be in your name. You may be breaking the T&Cs to use another account.

Although in practice, unless you tell them, they'll never know, as they can't get that information from the bank due to the DPA.

I know NPower simply say that they require authorisation from the account holder, so if its being paid by the wife, they need to speak to her.

I don't know any companies that specifically state it must be paid by a specific person.

thenudeone

Hominu wrote: »

I don't know any companies that specifically state it must be paid by a specific person.

Here's one: https://help.stockbrokers.barclays.co.uk/help/direct-debits/DDIs/

Although surprisingly, many companies will knowingly allow another person's account to be used, but will insist on a paper signed direct debit form to be used, or a telephone coversation with the (supposed!) account holder. eg http://help.ee.co.uk/system/selfservice.controller?CONFIGURATION=1016&PARTITION_ID=1&secureFlag=false&TIMEZONE_OFFSET=&CMD=VIEW_ARTICLE&USERTYPE=1&ARTICLE_ID=539492