Necessary to close current account after cheque book was stolen?

Sue Ellen

Moderator.
Messages
9,300
A friend's house was burgled this week and their cheque book was stolen. They placed a stop immediately with the bank. The bank have left it up to themselves to decide if they want to close the account and open one with a new number. They have been told that they will need to notify anyone making payments into the account but the bank will automatically transfer over any utility bill payments. As the book has been cancelled they have also been told that the bank will take the hit if any cheques from the stolen book are cashed?

Any views or further advice? Would the info be used quite easily for identity theft because of names, NSC etc.?

Gardai seem to think that it will just be dumped but one has to ask why they took it then?
 
It will be very easy to set up direct debits with the account number and sort code.

I would close the account.
 
Only the authorised bank account holder could set up legitimate, enforceable direct debits.

For the Direct Debit Scheme each DDI (Direct Debit Instruction) must be signed by the Payer - CeannComhair's friend in this case.
If an Originator attempts to collect funds using a DDI that isn't signed by the Payer then the DDI isn't valid and the Payer couldn't be held responsible.

For the Direct Debit Plus Scheme each DDI (Direct Debit Instruction) the originator is obliged to "...verify the customer details, including identity details, bank account details, authority details (joint accounts, non-personal accounts, etc)...".
If an Originator attempts to collect funds using a DDI where they have not verified the customer (Payer) details then the DDI isn't valid and the Payer couldn't be held responsible.

That is not to say that there couldn't be an attempt to defraud CeannComhair's friend. But I don't think the risk is significantly greater because someone has details that are on the cheques - the same details that were on each of the legitimate previously issued cheques.
 
It can be a devil of a job to get money refunded where such fraud has occured.
 
Back
Top