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Direct Debit Account Name
Hi all,
Apologies if this is in the wrong category but just need some advice. I have a friend who has had a Direct Debit set up on their account but it turns out it was her elderly mother who did it using my friends account over the phone. We've reviewed the call and at no point was she asked to confirm the name on the card. Is this a legal requirement for the people setting up the DD to confirm over the phone or to ask if the person calling has authority to set up DDs on an account? Thanks.
Comments
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DDs aren't associated with cards but with accounts - if it was card details being supplied then it may actually be a continuous payment authority, similar but not identical?
If a DD, it can be cancelled via the DD Guarantee under these circumstances (as with the famous Jeremy Clarkson case), or is she hoping to prove some sort of wrongdoing by the bank?
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Thanks for coming back to me. She's trying to prove that the company the DD was set up with haven't done their due diligence in confirming the name of the account holder when the DD was set up. I thought that asking to confirm the account number at the point of a telephone sign-up would have been a legal requirement but can't seem to find anything concrete confirming and the company the DD has been set up with are claiming ignorance!
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I'm not sure there are any legal requirements in this area as such - the direct debit system is owned by BACS, and operated according to its own scheme rules, rather than being specified in regulations or via the likes of the FCA handbook or similar.
If the name of the account holder wasn't mentioned at any point then I can see the argument that the bank ought not to have accepted the mandate though.
What's the end game here, i.e. if, for the sake of argument, it's possible to "prove that the company the DD was set up with haven't done their due diligence", then what? Has the DD been cancelled? What's the status of whatever contractual arrangement the DD was to support?
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How did the mother have the friend's bank details to be able to setup a DD?
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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She's trying to prove that the company the DD was set up with haven't done their due diligence in confirming the name of the accoun
What does she want to acheve? Instead of proving something it's much easier to cancel the DD (online of over a phone) and, if any money was taken, get it refunded undere the DD Guarantee.
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Surely it's not particularly unusual to have the bank details of family members, for transfers, etc?
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You need to confirm if this is a DD or a CPA, as per @eskbanker for a DD card is not required, but for a CPA it is.
Was friend not aware that their Mother was setting up the DD on their account? In effect for a DD all that the company would require is sort code & account number. Certainly online they usually ask if it is your account.
On phone they could just take it that the person setting up the DD is the account holder. Given the DD Guarantee & their knowledge of the rules.
Life in the slow lane0 -
You have them saved in online banking perhaps, not normally to hand when you are setting up a direct debit for yourself
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Not sure there's much value in speculating and generalising here - the point is that (unless anyone has reason to doubt OP's story) the mother did use the daughter's details…
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What access would a company have to confirm the name on a bank account?
You asked if they should have asked the name on the card .
Why did mother have your friend’s debit card?
It is easy enough for your mother to give your friend’s name when asked for a name.
She must have known your friend!s bank account details.
Why should it be the company’s fault and not your friend’s mother who is at fault.
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