Direct debit fraud by family member??

Louturner96

Hello.

Not sure if this has happened to anyone before but I think I've been the victim of direct debit fraud from a family member.


Had a mobile phone bill for a large amount around 250 pound go out my bank with it being such a high amount I checked and apparently I've had debits going out my account for around £20 a month for the past few months.

Contacted the company who told me it's listed at my address and the contract was cancelled and full sum taken due to non payment of the bill.

I've never had a contract with this company before so as you can imagine was very shocked. I've since found out that it's a member of the family who was living at the same address that took this out under my name as they couldn't obtain credit themselves.

So I'm obviously very annoyed at this and wanted to ask what my options are. They say they can't pay me back at all so would I be wise to go to the bank report it as fraud and the bank refund me and then the mobile company chase the person for the debt?

The debt will still be in my name though so how would this work? Am I even liable for a refund on family debit fraud? Not sure if anyone else has ever had this?

Obviously I do not want the family member going to jail or anything or any bad things happening to them but I can't afford to have that amount of money going out my account.

Would the bank refund me? And what happens to the family member if the bank refund and then chase the mobile company for the debt who in turn would chase me again as it's under my name originally when it was taken out?

Please help?
Thanks

antrobus

Direct Debit guarantee.
https://www.directdebit.co.uk/DirectDebitExplained/pages/directdebitguarantee.aspx

Contact your bank and they will refund.

Contact your family member and tell 'em what you've done. and to sort it out otherwise you will have to report it to Action Fraud.

Pay more attention to your bank a/c in future.:)

colsten

How did your family member know your sort code and account number? Is it worth switching bank so you can keep your details from the family member? What other sensitive information of yours do they have (e.g. passwords, PINs)?

How did it take you several months not realising that £20/mth were taken from your account?

How come the bills weren't paid despite there being a DD mandate? Did your bank decline the payment due to lack of funds in your account? If so, did they charge you one or more unpaid transaction fees, and how much were you charged, over what period of time?

Have you checked your credit file(s) recently? Do the unpaid bills show?

Louturner96

Thanks for the swift response.

Ok so I'll go to the bank and get them to refund me tomorrow.

I think I will ask the bank for a new account too just to be on the safe side

However once that is done what happens then do the bank chase the mobile phone company for the money they have refunded me? Or as it's a 'one off' is it refunded and then just left at that?

And in turn the mobile company will come back to me for the debt as it was my name on the statement or do I tell the mobile company that it was a family member and they can pay it off monthly to them to clear the debt? As there's no way I'm paying it for them after this.

Thanks

Louturner96

colsten wrote: »

How did your family member know your sort code and account number? Is it worth switching bank so you can keep your details from the family member? What other sensitive information of yours do they have (e.g. passwords, PINs)?

How did it take you several months not realising that £20/mth were taken from your account?

How come the bills weren't paid despite there being a DD mandate? Did your bank decline the payment due to lack of funds in your account? If so, did they charge you one or more unpaid transaction fees, and how much were you charged, over what period of time?

Have you checked your credit file(s) recently? Do the unpaid bills show?

They must have had access to my purse with my details insidde.

And as the payments were only £20 a month i didn't even check it silly of me I know.

The mobile company said the bills were paid except one which was taken then returned as there were insufficient funds in the account at the time (again didn't even notice this) it's definitely taught me to be more careful in the future for sure

I'll definitely be switching banks for sure. I have checked my file and they aren't showing no.

Do you know happens once the bank refunds do they chase the mobile company for the debt then?

Thanks

BooJewels

If setting up an account that needs to be paid by DD, do you not have to sign a DD mandate - so was your signature forged too?

Louturner96

BooJewels wrote: »

If setting up an account that needs to be paid by DD, do you not have to sign a DD mandate - so was your signature forged too?

I'm not sure. It was done online I presume? Do mobile phone companies require online signatures for direct debit phone contracts? I've never taken one out so haven't a clue

EachPenny

Louturner96 wrote: »

Ok so I'll go to the bank and get them to refund me tomorrow.

I think I will ask the bank for a new account too just to be on the safe side

Is this your only bank account? If so, then without delaying reporting the suspected fraud too much, you need to think about what banking arrangements you'll need if your account is frozen pending an investigation.

Although you are the apparent victim in this, as the person you suspect of fraud is a family member and was living with you then it wouldn't be unreasonable for the bank to wonder whether you and the family member were working together to commit fraud against the bank/phone company... and it might take some time for them to make up their mind.

You really ought to make sure the family member is not willing to repay you the money (perhaps you need to discuss with another family member/parent who might be more persuasive) because there may be long-term consequences for them otherwise. You also need to think how this might affect family relationships.

Louturner96 wrote: »

However once that is done what happens then do the bank chase the mobile phone company for the money they have refunded me? Or as it's a 'one off' is it refunded and then just left at that?

It wasn't a one-off though.... the bank are unlikely to write the money off, especially if you tell them what has happened. From what you say you are the victim of a crime with a known perpetrator... why should the bank suffer a loss as a result?

Louturner96 wrote: »

And in turn the mobile company will come back to me for the debt as it was my name on the statement or do I tell the mobile company that it was a family member and they can pay it off monthly to them to clear the debt? As there's no way I'm paying it for them after this.

That is quite likely if the bank recovers the money from the phone company, and if you inform the phone company that a crime has taken place then it is possibly quite unlikely they would be willing to have the bill paid off on a monthly basis over an extended period of time. Being repaid in full immediately might be the only way your relative manages to avoid having the phone company report their fraud to the police.

jimjames

Louturner96 wrote: »

So I'm obviously very annoyed at this and wanted to ask what my options are. They say they can't pay me back at all so would I be wise to go to the bank report it as fraud and the bank refund me and then the mobile company chase the person for the debt?

Obviously I do not want the family member going to jail or anything or any bad things happening to them but I can't afford to have that amount of money going out my account.

You really need to decide on your course of action. If you report it as fraud then you need to show why you believe that which will mean you implicate your relative. You can't claim fraud and expect no consequences for them. They either settle up with you or have the potential of a criminal conviction although jail is unlikely.