Creation Finance - setup DD without permission

CheckingThingsOver

Hey all,

Looking for a bit of advice here.
I’m currently on a DMP with StepChange, one of the creditors is Creation Finance.

So at the point of setting up the DMP, I opened a new bank account and now use that as my main account for salary and DD payments etc.

I’ve just discovered that Creation Finance have setup a direct debit against my new account, without my permission and are using that to take money out of my account, whilst ignoring the DMP and refusing to engage with StepChange.

Genuinely haven’t a clue where they got my bank account details from as I’ve not provided them to Creation.

I’ve obviously cancelled the DD, but whats my next step here. Isn’t this technically fraud?

Thanks,

Russ

burgervanman

Did you use the account switch service when swapping banks? If you did chances are they have probably attempted to reconnect a DD from and old account and its copied over. Departments/Systems in large companies never talk to each other so chances are it might be this?

Happened to my sister, which made me ensure I did mine manually (DD swaps for non-debts on my new 'clean' bank account prior to DMP).

The switch service stays active for 2 years I think after swapping accounts.

CheckingThingsOver

I did go through switch service, but before doing so I made sure I cancelled all non-essential direct debits on the old account. Creation DD included.

Interestingly enough, the transaction history on my creation account shows several direct debit payments over the past few months, but a few days later shows them as ‘reversed’… yet the money was definitely taken from my bank account.

I’ve raised a formal complaint with Creation and will see what they say.

Thanks 🍻

RAS

This is why we advise not to use the switching service. Creditors can reinstate DDs cancelled before using the switching service or deleted after the switch.

You''ll need to check every month for reincarnations or get another account and manually switch DDs.

Brie

the transaction history on my creation account shows several direct debit payments over the past few months, but a few days later shows them as ‘reversed’… yet the money was definitely taken from my bank account.

I find the creation statements so confusing. Plus the fact that you have about 2 weeks total to look at a statement before access to it is pulled. I had to resort to getting someone to send me a complete list of my account month by month.

ManyWays

I think it sounds like a system error by creation, you should make a complaint about it.

But have you considered an affordability complaint against Creation (and the other debts in the DMP)?
if you win this, all new interest stops, your current balance in the DMP should be reduced and and they will be happy to take what Stepchange is offering. So killing two birds with one stone?