Unscrupulous companies can easily take advantage of your bank account with direct debits. There are solutions to block these fraudulent transactions and get a refund.
Direct debit is a very practical means of payment for settling recurring expenses, such as subscriptions to online services, electricity supply or a car loan. But like all means of payment, it is not infallible and can be subject to fraud, as the famous SFAM affair recently proved again. According to the latest report from the Payment Methods Security Observatorydirect debit fraud only represents 0.0010% of the total transactions carried out in 2023. But the damage still amounts to 22 million euros, an increase of 10% compared to the previous year.
And if direct debits only account for 1.9% of total fraud in 2023, far behind bank cards and checks, their share could increase in the coming years. Because it is very easy for a malicious company to set up an abusive direct debit. To withdraw money from an account, a creditor must normally present a SEPA direct debit mandate (Single Euro Payments Area) signed by the debtor at the latter’s bank. However, at the time of its presentation, the banking establishment does not always verify the signature of the mandate, whether handwritten or electronic.
Thus, a company with a person’s Bank Identity Statement (RIB) can very easily generate false SEPA direct debit mandates and send them to a bank to unduly debit a bank account. And as long as the law does not impose strong authentication or a so-called “advanced” electronic signature before setting up any direct debit, this method will continue to work.
Fortunately, it is possible to protect yourself against abusive withdrawals by being vigilant, and even to obtain a refund of the amounts debited. First, you can consult the list of active direct debit mandates on your bank’s online space or application. By consulting it regularly, for example once a week, you will be able to identify suspicious, past or future direct debits.
If you spot an unknown or abusive direct debit, you can certainly suspend it temporarily from your bank’s online space. To revoke it permanently, you will need to send a letter, preferably by registered mail, to the creditor who originated the direct debit and to your bank, indicating the Unique Mandate Reference. You will find this code, made up of letters and numbers, in the list of mandates mentioned above.
Then, even if your account has been debited, you can request a refund from your bank. If it is a direct debit that you have previously authorized, you can dispute it up to 8 weeks after the debit, and your bank must reimburse you within 10 working days of your request. In the case of a fraudulent direct debit, for which you have not signed a contract or mandate, you can dispute it up to 13 months after the debit, and your bank is required to reimburse you one working day after receiving your dispute. In both cases, it is best to send your complaint by registered mail to your account holder.
Keep one thing in mind: revoking the direct debit mandate does not cancel the origin of the debt, which will therefore remain due if it is legitimate. A malicious company could therefore claim that you have indeed signed a direct debit mandate in its favor, for example by telephone. So prepare your defense well, and demand in writing that the company in question provides you with proof of your consent to the direct debit, not forgetting to report the company to the competent consumer protection authority.