Over the Phone Direct Debits: Is this right?

theholyghost

Hi folks,

I'd really like to hear your views on this. O2 have called me and offered to move me from a pay as you go phone to a bill phone. In order to set the payment up, I tell them my account number and sort code over the phone.

They then contact the bank and can set up the DD/bill on my behalf. The phone call, apparently, is me giving permission.

Does this sound right? 2 third parties getting together to set up a DD on my behalf? Without me signing or filling out anything. It sounds wrong to me. It even makes the call sound suspect but I don't think anyone can do much by knowing a bank account number and sort code.


Am I just being paranoid or over reacting or does anyone else have a view on DDs being set up in this fashion?

P. Breathnach

I have set up DDs over the phone, but only with businesses that I know and trust.

dudara

Moved to Banking & Insurance & Pensions

dudara

3DataModem

Yes, this is normal. Only some companies have permission to do this. It is part of the "direct debit plus" scheme. It does not substantially alter your rights.

chris85

Part of the "originator plus" DD scheme. DD's can be done without signature. It will show on your statement as OP/O2 or something to that effect to show its done using originator plus.

You gave them your account details, why did you if you didnt want money to be taken from it?

theholyghost

chris85 wrote: »

You gave them your account details, why did you if you didnt want money to be taken from it?

I didn't. I'm asking if people think this method protects the consumer or not really.

chris85

Ok get you now. No change to the rights of the customer. You can choose to sign a direct debit mandate instead if you wish. They will send you one out.

dub45

theholyghost wrote: »

I didn't. I'm asking if people think this method protects the consumer or not really.

The direct debit system itself affords very little protection to the customer when you examine it and read about peoples' experiences with it. There is no upfront protection at all. From the time that you take out a direct debit your account is wide open. IPSO who are "responsible" for the running of the scheme apparently operate on the basis that everything is ok as it can all be fixed up afterwards without any consideration for the distress caused to the bill payer when the system goes "wrong".

The so called direct debit guarantee is a lie and unworkable.

The dd+ system is designed solely for the benefits of business to enable the fast sign up of customers either over the net or over the phone (usually) - under this system the companies hold the paperwork and the banks have no record of the customer signing up for such a dd until the account is debited. It often causes confusion for banks due to the absence of paperwork in branches.

The notice period for dd+ is only seven days. This is very anti-customer as three days are lost out of any notice period due to the transmission time necessary for billing information passing to the paying banks and two days will be lost due to a weekend in any seven day period. So in reality if you have a problem with your bill you have very little time to get the billing company to correct it even though the dd system rules state that disputed amounts should not be debited.

Also you should take into account the disgraceful lack of knowledge of how the system works amongst the majority of bank staff (even senior staff) and avoid dd's if you can. Once you take out a dd you effectively lose control over your account.

It is instructive that several bank staff have told me that under no circumstances would they have a dd on their account.

It can also very expensive to miss a dd payment. The bank will charge you - usually around €11 or so while companies may also charge you - for example the esb charges €6 while UPC charge €11. These companies do not advise their customers of these specific charges when new dd's are being set up.

Its a great system for business!