Card transactions by proxy

Roland Perry lists at
Wed Apr 6 09:18:58 BST 2011

In article <4D9C186A.2090604 at>, Peter Mitchell 
<otcbn at> writes
>>  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?
>Certainly it can, the employer simply tells the bank they have DD 
>authority over those accounts. The bank doesn't check, any more than it 
>checked Jeremy Clarkson.

Wouldn't the bank check to see if the employer was registered with them 
for doing DDs *at all*?

Some employers would have DD arrangements in place to get money from 
their [retail] customers, but its far from universal.

As a consultant, it does strangely appeal to me that I could do a DD on 
a late-paying client's bank account (and wait for them to complain). But 
somehow I don't think that's possible.
Roland Perry

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