Watch out for electronic direct debits

[simpo two]

Did you know that a company can send an 'electronic direct debit' to your bank and help themselves to your money? You never signed a DD mandate, but the money goes and the bank can't do anything about it.

Worse, when you eventually find out and cancel the DD in writing, the company can simply issue another one the next month and take more.

Corporations 5, punters 0.

[xm5er]

The terms and conditions of any DD say that your bank is legally obliged to refund any money taken in error/without approval, immediately.

The taker has to prove that they have the right to take it.

[parrot of doom]

Your bank is also obliged to inform you of any new direct debits on your account.

[volvos70t5]

How does the company get your bank account sort code and account number?

[parrot of doom]

You tell them. Thats why mobile phone companies don't have to send you a DD form these days, they just do it over the phone.

[scared but happy]

That is why I NEVER give my banking details over the phone. Regardsless of who they are, infact some of them can get quite pushy (mainly mobile phone companies).

I always ask them to send me the information to browse through at my leisure, so far noone has.

[simpo two]

Part of the reason was that the company name I knew them by, Girobank, somehow changed to Euroconnex. I cancelled both DDs to Girobank in time but didn't know about the Euroconnex one.

Bank (Investec) says electronic DDs aren't covered by the DD guarantee. First assistant said they couldn't notify me if the DD was re-opened; second assistant said they would try but no guarantee.

The good news that I eventually got through to Euroconnex who apologised, said they would send a courier to collect the offending item and refund the money taken.

So how much of my life has that been, wasted?

[xm5er]

Your bank is lying to you.

www.bacs.co.uk/BPSL/directdebit/generalpublic/yourrights/

Applies to both paper and paperless DDs. All operated by the same company.

[off_again]

Exactly what XM3ER says. DD covers both types and the bank is spinning you a tale. Take it up with them and demand to know what is going on......

Smoke screen for a cock up perhaps?