Authorised unauthorised payment on Halifax Clarity

Kazzamia

Hi all,

First post here, as I need to share with someone :-S

Just back from hols in Thailand. In the airport I bought a bottle of water for 190 THB and put it on my Halifax Clarity card (opened specifically for this hol as it's supposed to be good for travelling). Unfortunately the woman behind the till keyed 1900 THB into her card reader, so my water went from being an overpriced £3.84 to a crazy £38.47! I immediately noticed this, I refused to sign the receipt authorising the transaction (they don't yet do chip'n'pin over there), or to accept the bottle of water, and instead asked her to cancel it. There then ensued 1/2 hr of faff with the cashier attempting to void the transaction and then her boss trying to do the same. 30-40 minutes later I had to leave to catch my flight, with cries of 'we'll cancel it' in broken English ringing in my ears.

Get home, wait a few days, check account, see the charge on it and only then do I call Halifax to dispute the transaction. A couple of days later I receive an apologetic letter from Halifax saying sorry, they contacted the merchant on my behalf; they're not liable because the transaction is under £50, and I should pursue the merchant (a chinese takeaway in Bangkok airport!) myself. It turns out that the T's&C's of my card allow this! I'm still reading up on it, but I don't think I had a leg to stand on, from the moment the transaction hit my account, despite immediately noticing the mistake and refusing to authorise the transaction. Here's the relevant excerpt: what do people think???

16. Lost and stolen cards and unauthorised or incorrectly carried out payments
16.1 You must call us immediately on 0845 720 3099 if the card or cheques are lost or stolen or could be misused, or someone except you or any additional cardholder knows the PIN or if you think a transaction has been incorrectly carried out. You need to give us the card number. If we ask, you must write to us within 7 days to confirm your call. The address is Bank of Scotland plc, Card Services, Pitreavie Business Park, Dunfermline, Fife KY99 4BS.
16.2 Generally, you will not be liable for misuse of a card, cheque, PIN or security details (except by you or an additional cardholder), including if the card is used before you receive it. You will be liable for misuse by a person who got the card, PIN or security details with your permission until you tell us about the possibility of misuse. However, you will not have to pay us any money for any loss we suffer because of the use of a card, cheque, PIN or security details if they have been used without your authority in connection with a distance contract as defined by the Consumer Protection (Distance Selling) Regulations 2000 or the Financial Services (Distance Marketing) Regulations 2004. We may give the appropriate authorities any information we consider relevant about the loss, theft or misuse of a card, card account number, cheque or PIN.

chattychappy

No - nobody "got" your card. Just the merchant didn't process the transaction properly. It was unauthorised.

Under the Lending Code (which is incorporated into the T+Cs) you are not liable for unauthorised transactions unless there was fraud/gross negligence on your part.

The onus of proof is on the CC to prove you authorised the transaction or there was fraud/gross negligence.

It seems they misinterpreted the situation from your letter or don't understand the legal position. It is nonsense to say they contacted the merchant "on your behalf". If they wish to contact the merchant, then it is "on their behalf" - to try and get evidence to prove you authorised the transaction. And of course they can't because you didn't sign.

So write again and make it clear that you are complaining. You DIDN'T authorise the transaction because the amount wasn't as agreed. They should "refund" immediately else you'll escalate to the FOS. Remind them of the Lending Code. (Google to find the correct para to quote.)