Card transactions by proxy
otcbn at callnetuk.com
Wed Apr 6 14:01:07 BST 2011
Charles Lindsey wrote on 6-04-11 12:47:
> On Tue, 05 Apr 2011 15:36:17 +0100, Peter Mitchell <otcbn at callnetuk.com>
>> Cheques or SOs cannot be set up without your signature or a similar
>> means of authorisation. If they are, you can repudiate them relatively
>> easily, although - as with all frauds - the accountholder will suffer
>> inconvenience until it is resolved.
> Yes they can because, as I was surprised to discover, the piece of paper
> with your signature is never shown to the bank. The Setter-up just
> informs the bank that they have the authority, and it happens.
You mean DDs can be set up that way. Yes, that's the point I
The supplier is much less likely to do something similar
with cheques or SOs. Partly because they would (usually)
first have to get hold of a physical object such as a
chequebook or bank card belonging to the customer, and then
impersonate him, which is difficult; and partly because that
would be committing a serious criminal offence, whereas with
DD they can just do it and nobody will do a damned thing,
least of all the police.
> This happened to my wife. They knew the bank details because they needed
> to pay dividends to her. But they also set up a DD facility (though they
> had no signed authority) even though no payments from my wife would
> arise. Two years later, they raised a DD which the Bank paid (but
> immediately unscrambled when asked). But I doubt that "they" could have
> produced the signed paper after two years, even if it had existed.
Yes - that's pretty much the scenario I am complaining
about, except that banks very often do *not* reverse the
payment when asked. A quick google will show many examples e.g.
It may be that banks are beginning to perform a bit better
on this front, as Ian claims. But if so - and I would like
to see evidence - by God it's taken a long time and a lot of
arse-kicking by consumers to get them to behave themselves.
The regulators, of course, have been next to useless.
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