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Savings accounts deposits by Direct Debit? UPDATED

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  • colsten
    colsten Posts: 17,597 Forumite
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    tebthereb wrote: »


    You would think, but the Tesco account doesn't seem to say anything like this when I set up a Direct Debit call, and even the T&Cs do not seem to cover it.


    Every time you set up a DD (/Money transfer in), you have to confirm that the account you transfer the funds from is yours. If you choose to lie at that stage, that's obviously up to you, but don't expect anyone to bail you out when you get found out. Which is simply a matter of time.
  • tebthereb
    tebthereb Posts: 162 Forumite
    Eighth Anniversary 100 Posts Combo Breaker

    Thank you, I had not spotted that. That is good.
    colsten wrote: »
    Every time you set up a DD (/Money transfer in), you have to confirm that the account you transfer the funds from is yours. If you choose to lie at that stage, that's obviously up to you, but don't expect anyone to bail you out when you get found out. Which is simply a matter of time.

    I am talking about if other people choose to lie and enter my account details!

    Concerned there is limited chance of them being found out.
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    tebthereb wrote: »
    I am talking about if other people choose to lie and enter my account details!

    Concerned there is limited chance of them being found out.

    This risk has been there from the day Direct Debits did first become available a few decades ago. Back then, it was even easier for people to find out your sort code and account number than it is now, because everyone was using cheques which have this information printed on them. Since then, tens of billions of DDs have been processed, very few of them in error.

    There is a 100% chance of finding out if somebody deliberately or accidentally uses your bank details - you just check your bank account for any unknown DDs.

    Better still, the Direct Debit Guarantee gives you a 100% guarantee that you can reclaim any money wrongly taken from your account.
  • adindas
    adindas Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    tebthereb wrote: »

    Concerned there is limited chance of them being found out.

    Even it is set up online almost all banks (if not all) will send confirmation letter to your doorstep, to confirm that you are the person setting up the DD.

    I just received about 10 letters from Tesco as a result of changing my DD instruction amount from £1.00 DD to £1.01, as well as setting up a new DD.

    For that reason alone I believe it is a lost leader product for Tesco Bank if people are doing DD with a tiny amount such as £1.
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    adindas wrote: »
    Even it is set up online almost all banks (if not all) will send confirmation letter to your doorstep, to confirm that you are the person setting up the DD.


    Those notifications are essentially useless. It's a bit quaint that Tesco (and some others I could mention but I won't) will send confirmation letters saying they will pull money into my savings account but this notification is of no use to me finding out that someone fraudulently or by mistake has set up a DD against one of my current accounts. The confirmation letters also don't mention the sort code and account number of the debitor, or the amount to pulled in and when it gets pulled. So they are also no use to checking you got all the numbers right.

    I have dozens and dozens of DDs but not one single time did any of the current account providers ever send me any notification that someone (i.e. me, usually) set up a DD to take money from one of my current accounts. It doesn't actually bother me that I don't get such letters as I can check at any time what DDs I have set up on my online banking, and the valid DDs are also recorded in my personal finance application.
  • xylophone
    xylophone Posts: 45,605 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I believe it is a lost leader product for Tesco Bank

    Commemorating Sir Terry's retirement?:)
  • Doc_N
    Doc_N Posts: 8,543 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    adindas wrote: »
    Meaning ???


    ....

    Just a reference to 'lost leader' instead of 'loss leader', I imagine. I thought it was an amusing comment. :)
  • EarthBoy
    EarthBoy Posts: 3,209 Forumite
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    adindas wrote: »
    Even it is set up online almost all banks (if not all) will send confirmation letter to your doorstep, to confirm that you are the person setting up the DD.

    I don't remember any of my banks ever doing that, not in the 38 years since I opened my first current account. The company receiving the money usually writes to me, but the bank never does. Nationwide, RBS, TSB, First Direct, Halifax, -none of these write to me.
    colsten wrote: »
    I have dozens and dozens of DDs but not one single time did any of the current account providers ever send me any notification that someone (i.e. me, usually) set up a DD to take money from one of my current accounts. It doesn't actually bother me that I don't get such letters as I can check at any time what DDs I have set up on my online banking, and the valid DDs are also recorded in my personal finance application.

    My experience is the same as yours.
  • Westie983
    Westie983 Posts: 5,215 Forumite
    Tenth Anniversary 1,000 Posts I've been Money Tipped! Name Dropper
    Tescos do send you a letter to say your account is linked, strangely they send two of mine in different envelopes that arrived on the same day, so

    Tesco do write to the recipient of the DD, so you would find if someone linked your account you would know about it.
    I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.
    Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%
    Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%
    Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%
    Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%
    £2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%
    The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%
    Total £4095.19/£7332.95 = 55.84%
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Westie983 wrote: »
    Tescos do send you a letter to say your account is linked, strangely they send two of mine in different envelopes that arrived on the same day, so

    Tesco do write to the recipient of the DD, so you would find if someone linked your account you would know about it.

    Are you talking about Tesco current accounts or Tesco Savings accounts?

    I have no experience with the former as I never use my Tesco current accounts to pay any DDs.

    If the latter, it will be you who set up the "link", unless you have given a 3rd party access to your Tesco banking, intentionally or otherwise, and the 3rd party has requested that some money gets pulled into your savings account. As I posted earlier, the confirmation letters Tesco send are pretty much meaningless but I have a suspicion they must send them as part of their FCA licence as other savings account providers do the same.
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