Card transactions by proxy

[Ian Batten]

On 6 Apr 2011, at 09:18, Roland Perry wrote:

> In article <4D9C186A.2090604 at callnetuk.com>, Peter Mitchell <otcbn at callnetuk.com> 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*?

Peter believes that employers are willing to breach the theft act and the fraud act, in collusion with banks, in order to do him down.  There's little arguing with that.

As a random example, why would a bank, of which I am a customer, collude with my employer, who isn't, to defraud me?  And transparently, obviously defraud me?   And that's before Roland's obvious point that most employers aren't DD originators at all, and those that are the payroll people are so organisationally removed from the accounts receivable people that it wouldn't happen, in part because any company that tried anything so stupid would lose its DD-origination rights and that would cripple them.

ian