Plusnet Direct Debit

Why are Plusnet asking me to pay by direct debit?
One of the worst banking payment facilities ever invented - so corrupt now that BACS ignore new mandates !!
What is wrong with the straightforward debit card !!?

Wagstaff

I've used DD for years and never had any problems.

There's been a lot of debate on Plusnet forums and I come down heavily on the side of paying all my bills by DD and wouldn't do business with any company that wanted me to give them a continuous authority on a card.

It was only recently that I discovered the flaw in the DD system.
Once a company - any company in the world - has hold of your bank sort code and bank account number, they can apply through BACS for a payment against your account, without your authority and without your knowledge.
The crucial point is that they don't need a DD mandate to do this !! Your bank doesn't check for an authority !!
Hard to believe, I know, but that is the reality.
True, I understand, the debit card system is a risk, but you usually know when and who you're paying, the amount, and you normally obtain a receipt. The recipient has access to your card, but not your bank account.

Wagstaff

Why are Plusnet asking me to pay by direct debit?

The amount due is requested by the vendor, requiring no input from the customer. This is all very well providing the vendor informs you of any increase before it's actually taken.

It is therefore better for the vendor when amounts due can vary, and basically ensures that you don't accidentally miss a payment.

Once a company - any company in the world - has hold of your bank sort code and bank account number, they can apply through BACS for a payment against your account, without your authority and without your knowledge.

Not according to this link

That sounds rather like an urban myth to me - please give evidence (links) to back up your assertion.

Edited by jelv (Sun 23-Jan-11 22:04:01)

In reply to a post by Wagstaff:

...
True, I understand, the debit card system is a risk, but you usually know when and who you're paying, the amount, and you normally obtain a receipt. The recipient has access to your card, but not your bank account.

???

First, I don't quite see the difference between putting a payment through on a debit card or a direct debit, as both remove money immediately from your bank account.

In fact a d/d does require prior notification to you, 10(?) days beforehand, of the amount that will be taken. I'm not sure a debit card does.

If he has your card details, he's away wiv da dosh!

More importantly, a CCA on either a debit or credit card is inherently unsafe, as you cannot revoke the authority. Only the party with the authority can cancel it. All you can do is write, (in any provable form), to them telling them you no longer authorise it.

That can be used to persuade your bank that any subsequent debits are illegitimate, but I believe the onus is on you to demand a refund on that card from the debiter.

Even cancelling the card and getting it replaced by another with a new number is useless. The new card can still be charged.

On the other hand, you can revoke a d/d authority at your bank, and you are fireproof. If unauthorised monies are later taken via that d/d the bank have to refund you. How they get it back from the debiter is their worry.

'Once a company - any company in the world - has hold of your bank sort code and bank account number, they can apply through BACS for a payment against your account, without your authority and without your knowledge. The crucial point is that they don't need a DD mandate to do this !! Your bank doesn't check for an authority !! Hard to believe, I know, but that is the reality.'

Yes, but should any company in the world do that without your bank holding a mandate then once brought to their attention the refund is immediate and is marked as an unauthorised transaction. Can't argue with your statement though. All you say is true.

In reply to a post by RobertoS:

In reply to a post by Wagstaff:

.

???

First, I don't quite see the difference between putting a payment through on a debit card or a direct debit, as both remove money immediately from your bank account.

In fact a d/d does require prior notification to you, 10(?) days beforehand, of the amount that will be taken. I'm not sure a debit card does.

If he has your card details, he's away wiv da dosh!

More importantly, a CCA on either a debit or credit card is inherently unsafe, as you cannot revoke the authority. Only the party with the authority can cancel it. All you can do is write, (in any provable form), to them telling them you no longer authorise it.

That can be used to persuade your bank that any subsequent debits are illegitimate, but I believe the onus is on you to demand a refund on that card from the debiter.

Even cancelling the card and getting it replaced by another with a new number is useless. The new card can still be charged.

On the other hand, you can revoke a d/d authority at your bank, and you are fireproof. If unauthorised monies are later taken via that d/d the bank have to refund you. How they get it back from the debiter is their worry.

How wrong can you be, Bob?
I can't believe that you could say such a thing!!
First of all, when you use a debit card, the transaction happens immediately, you use a thing called a PIN.
When you set up a direct debit, the transaction happens when the recipient decides to access your account.
How difficult is that to understand ?!!

Wagstaff

DD you have more protection on than anything else best way to pay