Direct debit set up against wrong account

jelv

On checking our bank statement today we found a direct debit payment we did not recognise. A bit of detective work discovered that the money was taken by Domestic and General. We have not taken out any recent policies.

I contacted D&G and quickly established that the name and address on the account wasn't us (it wasn't even close) so it appears that D&G have set up the Direct Debit against the wrong account - they have said they will refund and cancel the DD. Whether they were given the wrong number or made a mistake setting it up I didn't ask.

When you fill in a DD mandate you have to give not only the branch and account number, but also the account name, so next I contacted our bank (Nationwide) to ask how come they accepted and set up the DD against our account when it was for a totally wrong name (not even remotely similar). They told me that they do absolutely no checking whatsoever and it is totally the responsibility of the trader setting up the DD (to be fair they also pointed out that the DD guarantee covers this circumstance).

Is this correct or should Nationwide have done some checking?

grumbler

jelv wrote: »

When you fill in a DD mandate you have to give not only the branch and account number, but also the account name, so next I contacted our bank (Nationwide) to ask how come they accepted and set up the DD against our account when it was for a totally wrong name (not even remotely similar). They told me that they do absolutely no checking whatsoever and it is totally the responsibility of the trader setting up the DD (to be fair they also pointed out that the DD guarantee covers this circumstance).

Is this correct or should Nationwide have done some checking?

This is correct. Nobody fills in paper mandates any more, let alone signs them. And I think the sort code and the account number is the only information a third party needs to set it electronically.

Some recent and old threads:
Standing Order/DD
Unauthorised direct debit set up!
AUDDIS Direct debit system being abused by NPower?

jelv

Thanks for that - as you will have seen I've read your posts. I'm totally with you on this.

Atidi

jelv wrote: »

On checking our bank statement today we found a direct debit payment we did not recognise. A bit of detective work discovered that the money was taken by Domestic and General. We have not taken out any recent policies.

I contacted D&G and quickly established that the name and address on the account wasn't us (it wasn't even close) so it appears that D&G have set up the Direct Debit against the wrong account - they have said they will refund and cancel the DD. Whether they were given the wrong number or made a mistake setting it up I didn't ask.

When you fill in a DD mandate you have to give not only the branch and account number, but also the account name, so next I contacted our bank (Nationwide) to ask how come they accepted and set up the DD against our account when it was for a totally wrong name (not even remotely similar). They told me that they do absolutely no checking whatsoever and it is totally the responsibility of the trader setting up the DD (to be fair they also pointed out that the DD guarantee covers this circumstance).

Is this correct or should Nationwide have done some checking?

This (the bit I highlighted) is not correct and don't trust them to do it. (It's also against the guidance/rules of the Direct Debit Scheme to do so)

As the Nationwide said, the Direct Debit Guarantee covers this sort of thing and you should claim a full and immediate refund from the Nationwide. (I'm surprised they didn't offer you this when you spoke to them about it)

And also cancel the unauthorised DD mandate yourself directly with the Nationwide. (Again, surprised they didn't offer to do this when you contacted them)

grumbler

I don't see how this is incorrect and against the guidance/rule, although resorting to the DD guarantee could be simpler.
I think Nationwed didn't offer a refund to avoid creating a mess as D&G have already promised to refund the money and t to cancel the DD earlier.