Employer taking money from your bank account

[Rich G]

Mrs G was in conversation with a friend tonight who has just left the firm she works for.

I wasn't party to the conversation but afterwards SWMBO told me that the company had threatened to take money from her friend's bank account for reasons unspecified.

As a matter of principle is such a thing possible and if so legal? Obviously the company has all their employees' bank details so that they can pay them at the end of the month but I have always understood that your bank would need to hold a signed mandate (direct debit or standing order) for them to accept such a demand.

What does the panel think?

[dave123456]

sounds like an unlawful deduction.

and anyway, how do you take cash with just bank details?!

[supertouring]

Was it just deducting money from the final salary payment?

Happened to me many years ago.

[Pcot]

dave123456 said:

sounds like an unlawful deduction.

and anyway, how do you take cash with just bank details?!

You can't. She's talking bks.

[SLCZ3]

This^^^^^, many years ago got paid the same month twice due to something getting lost, the company could not recover it unless I gave the OK to the bank.

[HenryJM]

Rich G said:

Obviously the company has all their employees' bank details so that they can pay them at the end of the month but I have always understood that your bank would need to hold a signed mandate (direct debit or standing order) for them to accept such a demand.

After years of experience creating software that is involved in taking money from bank accounts I can say that you can't do it without the account holder authorising a Direct Debit. And even if one exists and they use it if you complain to your bank you will have the amount refunded to you.

Standing orders would be no use in this context because the date and amount is set up in the SO and out of the control of the account holder.

[BertBert]

Didn't Jeremy Clarkson have the same level of certainty until the money departed his bank account?
Bert

[Neonblau]

BertBert said:

Didn't Jeremy Clarkson have the same level of certainty until the money departed his bank account?
Bert

Which was fraud and completely different to what we are talking about here.

I hope.

[HenryJM]

BertBert said:

Didn't Jeremy Clarkson have the same level of certainty until the money departed his bank account?
Bert

No, he published his sort code and account, someone else then used it to fill in a DD form for a charity and asked them to take a donation for it. What Clarkson could have done, but didn't, was get the money refunded to him by asking his bank to do so.

In the context of this issue the company could have filled in a DD form, assuming that they are a DD operator - which most companies aren't - and gained the money that way. But if they did the account holder could have the money taken back and, quite possibly, have some serious consequences for the company if they did try that.

[Rich G]

Thanks for the replies guys - pretty much as I expected, but always nice to have these things confirmed!