4 ms·

Is thin an American thing? Can they just pool money at will? In the EU, if you revoke their SEPA direct debit permission, they are committing a fraud if they t

Is thin an American thing? Can they just pool money at will? In the EU, if you revoke their SEPA direct debit permission, they are committing a fraud if they try to pull money, and 99.9999% of companies will not even try. If someone still does it, you can revoke the transaction in your online banking interface, and the company will then have to pay an additional fee to the bank.

hedora 4y ago
If they're large enough, they can get away with it, and the bank's insurance just eats the cost. Experian routinely generates unauthorized credit card charges. The banks know, but they rely too heavily on the credit rating industry to stand up to them.
marcosdumay 4y ago
I think a "stop payment" is the US name for revoking direct debit permissions.
- throwaway742 4y ago
  There is no initial permission. Anyone with your info can pull money out of your account. A stop payment just blocks a specific person from doing it again.
neltnerb 4y ago
I've had to call my bank and they had a very hard time unapproving someone after I'd given them deposit permissions but ended the business relationship. It was weird. They seemed very confused by the request.
throwaway742 4y ago
Yeah all that is needed to do an ACH pull is a name, account number, and routing number. There is no real security.
jacquesm 4y ago
If you spot it in time. Plenty of people don't actually monitor their bank account all that closely. This is how lots of money gets stolen.
- tomxor 4y ago
  Supposedly there is no time limit on direct debit claims: https://www.directdebit.co.uk/direct-debit-explained/direct-debit-guarantee/ https://www.directdebit.co.uk/direct-debit-explained/direct-...
  - memsom 4y ago
    Having had to deal with this is a previous job, from what I remember the rules DD are pretty strict and if you mess up as the collection agency, you have to put it right. You also don't get to just recollect - the few times we had software issues, we needed to write to all the people you are going to recollect from and inform them it will happen.
- luckylion 4y ago
  You have a lot of time though, it's just that it gets harder to reverse. Netflix' fraud detection is garbage and someone created an account with random letters, some throwaway email and my bank account. I didn't notice until it was like three months in. For the two later transactions, I could reverse them immediately and the money was back in my account on the next business day. The other one was outside of that window, but my bank filed a request with their bank and it took forever, but eventually they paid it back. I believe this works for something like 13 months. Beyond that, you could still sue the person (and their bank) who fraudulently debited money out of your account, but you don't get a default win. So at least in Germany you have about a year to notice.

hedora 4y ago

If they're large enough, they can get away with it, and the bank's insurance just eats the cost. Experian routinely generates unauthorized credit card charges. The banks know, but they rely too heavily on the credit rating industry to stand up to them.

marcosdumay 4y ago

I think a "stop payment" is the US name for revoking direct debit permissions.

throwaway742 4y ago
There is no initial permission. Anyone with your info can pull money out of your account. A stop payment just blocks a specific person from doing it again.

neltnerb 4y ago

I've had to call my bank and they had a very hard time unapproving someone after I'd given them deposit permissions but ended the business relationship. It was weird. They seemed very confused by the request.

throwaway742 4y ago

Yeah all that is needed to do an ACH pull is a name, account number, and routing number. There is no real security.

jacquesm 4y ago

If you spot it in time. Plenty of people don't actually monitor their bank account all that closely. This is how lots of money gets stolen.

tomxor 4y ago
Supposedly there is no time limit on direct debit claims: https://www.directdebit.co.uk/direct-debit-explained/direct-debit-guarantee/ https://www.directdebit.co.uk/direct-debit-explained/direct-...
- memsom 4y ago
  Having had to deal with this is a previous job, from what I remember the rules DD are pretty strict and if you mess up as the collection agency, you have to put it right. You also don't get to just recollect - the few times we had software issues, we needed to write to all the people you are going to recollect from and inform them it will happen.
luckylion 4y ago
You have a lot of time though, it's just that it gets harder to reverse. Netflix' fraud detection is garbage and someone created an account with random letters, some throwaway email and my bank account. I didn't notice until it was like three months in. For the two later transactions, I could reverse them immediately and the money was back in my account on the next business day. The other one was outside of that window, but my bank filed a request with their bank and it took forever, but eventually they paid it back. I believe this works for something like 13 months. Beyond that, you could still sue the person (and their bank) who fraudulently debited money out of your account, but you don't get a default win. So at least in Germany you have about a year to notice.