Could be paying off a compromised credit card to clear the balance on it (increasing the amount left to spend) and then cashing out the money or buying gift cards or other easily resellable goods. The DD’ed account holder as well as the legitimate owner of the credit card are left holding the bag, though under the DD guarantee at least the DD’ed account should be in the clear once it’s disputed.

Still on going. I withdraw all the money from my account, the ombudsman ruled in my favour but Monzo are yet to remove the £1000 over draft or charges. However they did pay £50 compensation. Happy to DM screenshots if you want to see.

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You can also create DD’s using GoCardless not used it myself but have had a brief look for my business

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Correct and Ezypay etc, you can create them in 5 minutes


The problem is that due to the DD guarantee, paying yourself is of no help as you’d get that money taken back when the account holder disputes the DD. The trick is to leave another company (usually a lender - I can’t think of a way for a fraudster to get cash out of a telco or energy provider) holding the bag. I’m assuming that’s what happened here. The real concerning thing is that Monzo seems to not honour the DD guarantee (unless my understanding of it is wrong) and reinstate the fraudulent DD themselves instead of letting the creditor follow it up directly (who would hopefully realise they’ve been defrauded given the inconsistencies in the mandate).

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That was me :joy: not you

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You are correct. Massive issue

Not for the first time, either. If you search the forum for ‘direct debit guarantee’ you’ll find other examples where they have refused to honour it :grimacing:


Which is just plain wrong!

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