Direct debit that wasn't authorised

4orr

I am curious as to how a credit card company has been taking a direct debit payment from my bank account?

Unfortunately, I had not noticed and they have been taking payments for a year. I know my fault.

I have called the company and they have confirmed that the credit card is not in my name. They will not give me any details as it is not my account. I have sent the information off to the response team. I feel confident that they will refund the monies. However, I am concerned as to how this can happen.

DCFC79

I would have spoken to your bank about it.

Direct debit guarantee is what its called.

Ballard

I think that there are a couple of possibilities:

1. The owner of the credit card put your bank details onto the form (either by mistake or fraud)

2. The credit card company accidentally put your details onto their database.

I haven't been involved in direct debits for a couple of years and even then it wasn't in a huge way but if a direct debit is set up electronically there's obviously no signature. Your bank simply set up the direct debit mandate as requested.

In the example that you've given I don't think that we would have checked in who's name the card had been issued. I'm not even sure whether the mandate gave that information as, from memory, there was often an account code rather than a name as reference.

We regularly received mandates for non-existent accounts so it's far from uncommon.

As you say, you should have checked your account more regularly but you will be refunded in full. As mentioned by DCF, speak to your bank.

robatwork

Are you sure it's a direct debit?

Chances are it's a CPA or recurring payment:

https://moneyfacts.co.uk/guides/banking/what-is-a-continuous-payment-authority/

SuperAllyB

robatwork wrote: »

Are you sure it's a direct debit?

Chances are it's a CPA or recurring payment:

https://moneyfacts.co.uk/guides/banking/what-is-a-continuous-payment-authority/

How on earth do you work that out?

Dobbibill

Have you ever paid someone elses CC? like your partner/parent/sibling etc

Or have you used a partner/friend/family members card for a purchase/shared purchase eg holiday? and agreed a one off payment.

Either way follow DCFC's advice in #2 - your bank will refund it under the Direct Debit guarantee

Sparx

Likely someone setup a direct debit with similar account details online/electronically, mistyped a digit and it's your account.

Most companies don't (well can't) check these. As the account name isn't checked with the bank, they just setup the DD and it gets paid.

Had this a few times at previous workplaces working with payments etc.

agrinnall

robatwork wrote: »

Are you sure it's a direct debit?

Chances are it's a CPA or recurring payment:

https://moneyfacts.co.uk/guides/banking/what-is-a-continuous-payment-authority/

SuperAllyB wrote: »

How on earth do you work that out?

Because that does indeed sound as if it could be what this is. The only DD that can be taken relating to a credit card is to pay off that card, and while that could be what is happening there are many more circumstances in which a CPA could have been set up.

The OP can clarify by telling us whether the payment from thir bank account is a Direct Debit or just a debit.

4orr

My bank was my first call, the bank told me to contact the credit card company directly.

4orr

Thank you very helpful will be checking DD more regularly now. It slipped because I do have a credit card hence why it did not seem odd. I was much more diligent when we had paper statements.

4orr

It says on my statement DD and when I cancelled it, it was under the DD payments. I have no idea what a CPA is?

The bank said that the DD renewed everymonth? found that confusing too