Card transactions by proxy

Matthew Pemble matthew at
Wed Apr 6 08:03:53 BST 2011

On 5 April 2011 19:01, Clive D.W. Feather <clive at> wrote:

> I've had one problem with DDs. One day I checked my statement to find a DD
> payment to someone I'd never heard of. The bank kept telling me that I
> would just get my money back under the DD Guarantee, but took ages to
> understand that I couldn't invoke it because I didn't know who the payee
> was and didn't have a DD with them. It got sorted in the end, but took a
> while.

I though the DD Guarantee was provided by the bank, not by the payee? And
guaranteed you against errors from the bank (i.e. applying a DD against your
account which you had never authorised) as well as errors by the payee (too
much, too often etc).

If an error is made in the payment of your Direct Debit by (insert your
> organisation name) or your bank or building society you are entitled to a
> full and immediate refund of the amount paid from your bank or building
> society

> A friend in the USA gets his pay, just like I do, by bank transfer from the
> employer. Except that a few months ago he discovered that it was actually a
> sort of reverse DD: the employer had a cash flow issue and just took back
> everyone's pay a couple of days after he'd paid it! Does anyone know if
> that can happen here?
Electronic payments can be revoked before they have cleared - which is a
different thing to a "reverse DD", although the effect is the same. In the
UK, of course, you'd have to be quick with "Faster Payments", nowadays. Of
course, you can revoke fraudulent payments after they have cleared (as money
mules regularly find out to their cost), but then the revoker has to accept
legal liability. Alternatively, you can demand (and eventually sue) for the
return of erroneous payments.


Matthew Pemble
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