Fraudulent use of cards with PIN - Can I get the money back?

nuclid

My understanding was that the Consumer Credit Act, which covers the theft of 'credit', states that liability for unauthorised withdrawals or purchases lie with the cardholder up to £50 - this technically means that, even if they have been negligent with their PIN, the cardholder is only liable to pay the first £50 of the losses incurred. If any money is stolen after the cardholder has informed their provider of the theft, then they are not liable for any money.

In contrast, the Banking Code covers the theft of money from a current account. The Code states that a victim of identity fraud is liable for their loss if they acted 'without reasonable care' - this includes writing down their PIN, failing to take due care of their card or failing to inform their provider about any loss or theft.

Therefore I'm led to believe that we can get most of his money back from the credit card but not from the debit card. Has anyone any experience or advice regarding this?

cooltt

Sorry my lovely but you've had it, giving out your card and pin is considered sheer ...well you know what i mean and you're going to be held liable no matter what you've read.

Also do you think it a little silly to have a daily withdrawal limit of that amount??

ElkyElky

Well, as you said, if the money was stolen after your partner reported it then he'll be fine.

However, I sense that the money was stolen before it was reported..because the banks would have canceled the cards and stopped them from being used.

In most cases, banks do not refund fraudulent transactions where the pin was used, simply because the only way a fraudster could obtain the pin is directly from the card holder.

Your partner revealed his pin number so it was his own fault that the fraudulent transactions occurred.

freeoffers

nuclid wrote: »

My understanding was that the Consumer Credit Act, which covers the theft of 'credit', states that liability for unauthorised withdrawals or purchases lie with the cardholder up to £50 - this technically means that, even if they have been negligent with their PIN, the cardholder is only liable to pay the first £50 of the losses incurred. If any money is stolen after the cardholder has informed their provider of the theft, then they are not liable for any money.

You can give it a try but in all honesty i doubt these circumstances cover such negligence by a cardholder. You've interpreted the act to mean that anyone can give out their PIN and then claim th emoney was withdrawn negligently. i doubt he'll get his money back mate. A very costly error as even thick old me knows not to give out the PIN.

freeoffers

ElkyElky wrote: »

Well, as you said, if the money was stolen after your partner reported it then he'll be fine.

However, I sense that the money was stolen before it was reported..because the banks would have canceled the cards and stopped them from being used.

In most cases, banks do not refund fraudulent transactions where the pin was used, simply because the only way a fraudster could obtain the pin is directly from the card holder.

Your partner revealed his pin number so it was his own fault that the fraudulent transactions occurred.

It only takes afew seconds to draw out the cash, and i am sure the cards would have been stopped had the cardholde called in time, so i guess you're right. the thieves must have thought xmas come early.

MPH80

See my post here - the Ombudsmen agreed with me too ...

Nuclid - it supports your position and contains reference material for you.

http://forums.moneysavingexpert.com/showthread.html?t=372881&highlight=

Dave101t

wheres the troll? it wasnt a deliberatly malicous comment, it was factual.
no one ever, ever gives their pin to anyone, even the bank or cc company.
also, they dont cover any transactions, fraudulent or not, if the card was 'given' to a 3rd party (not the case here) or:
the pin was 'given' to a 3rd party.
and a new poster would search 1st without blurting in because they would read the new members guidelines wouldnt they? unless they were completely rude and brainless.

jonesMUFCforever

I have never heard of any current account debit card with a daily withdrawal limit of £1000.

INT1

Ref the whole Credit agreement act and if a debit or credit card were used, if the bank/card issuer can prove negligience then they are not entitled to refund any money back.

It is at the discretion of the bank on whether he gets money back or not, they are not liable to pay your husband out though.

Also, posts like these are put on here, people like to read these sort of posts and do test cases with their banks to see if they can make a false claim with them.

IMO I really wouldn't post back on here what your bank decides to do with your case...

squack

oh dear. from the credit cards there will be a cash advance fees to pay as well. plus interest at a high rate from the cash withdrawals. better apply for a balance transfer card quick