Co-Op Basic Account - They gonna pay a reg bill and let me go overdrawn? Legal? ASAP

chanz4

TMO wrote: »

Hello, I got myself into a little situation but to cut everything short for now. Tomorrow a company will be taking £190 out of my account to which I do not have and who take this regular payment every month. I phoned co-op to tell them would the payment go through and leave me overdrawn on my BASIC bank account which has no overdraft facility, she told me yes as the debit card is a guarenteed way of payment and that money would be paid to them and I would up end overdrawn and have to pay fines. Like are you serious? I was about to let loose on her but thought I would get some advice from other people first. I told her how do I stop them from taking payment and she told me I can't and that I would have to ask them not to take payment from my card. I opened up a Barclays cash account a few weeks ago, so to be honest I felt like screaming at her and telling her to close my account right now.

Any advice would be greatly appreciated.

Why does your post contain external links.......

Gromitt

Fiddlestick wrote: »

Nobody ever said that it would be, only that it would help combat fraud due to the difficulty in cloning an EMV chip versus reading the magnetic stripe and re-encoding it onto a false card.

In pre-2010, it was relatively easy to clone the chip (so much so that it worked in offline readers).

In 2010 and onwards two things happened which made it vastly more difficult: Cards used the new generation of chips which supported dynamic signatures (rather than the static signatures of 2009 and previous) and the vast majority of retailers now use online readers (permanently connected) rather than offline readers.

inmypocketnottheirs

pqrdef wrote: »

But if your friend knew the bank was only trying it on, why give in? If he'd pursued the case, he'd have got his money back.

Who said that he was and they didn't. He did get a. Full refund after there had been serial offences all traced back to the same filling station.

Assumption is never a good idea.

inmypocketnottheirs

jonesMUFCforever wrote: »

On the balance of probabilities today I would say something like 200 million transactions would have been done by chip and pin - how many of them will result in cards being cloned - very few IMO
A risk ratio well within safe guidelines.
Absolutely nothing you do in your life is 100% safe!:D

What I find hard to understand is that given the difference in number of transactions between the UK and US, there must be a correlation between the number of transactions and the amount of fraud.

Why is chip and pin not in the US? Why is it often not even necessary to sign, just a swipe of the card? Are you saying that there is less fraud in the US? If chip and pin is the panacea that you proclaim, why isn't it implemented on a wider scale outside the UK?

Gromitt

inmypocketnottheirs wrote: »

Why is chip and pin not in the US?

Think of the size of the US. Its a serious investment to replace all of those readers with CNP devices, and a serious investment to the banks to replace all the cards to be CNP enabled. Apparently they are looking at better security, but what it'll be, I don't know. Maybe they'll bypass CNP completely and use RFID or some such (hopefully not Paypass).

inmypocketnottheirs wrote: »

Why is it often not even necessary to sign, just a swipe of the card

Again, investment and cost. Depending on the amount of customers you have it may work out significantly cheaper to say "Purchases under $20, don't bother asking for or storing the signature". If you get 1 fraudulent transaction in 5000, refusing to store those 5000 signatures just cost you anything upto $20. Its upto the shop to decide if they think thats worthwhile.

aldredd

inmypocketnottheirs wrote: »

What I find hard to understand is that given the difference in number of transactions between the UK and US, there must be a correlation between the number of transactions and the amount of fraud.

Why is chip and pin not in the US? Why is it often not even necessary to sign, just a swipe of the card? Are you saying that there is less fraud in the US? If chip and pin is the panacea that you proclaim, why isn't it implemented on a wider scale outside the UK?

Gauging the success of something based on whether or not the US do it, is never going to be a good idea!

inmypocketnottheirs

aldredd wrote: »

Gauging the success of something based on whether or not the US do it, is never going to be a good idea!

That's a pretty poor argument!

aldredd

inmypocketnottheirs wrote: »

That's a pretty poor argument!

It wasn't an argument - it was a statement.

Lets look at this the other way around.

A press release by the UK Cards Association in March this year stated that in 2011, card fraud was down nearly 45% since 2008 (the year when all UK cards would have finished converting to C&P)

so, you nearly half credit card fraud in just 3 years. This is an astonishing figure, and whilst it won't all be attributed to C&P, you can bet your life that a large amount of it will be.

Not been able to find robust comparable numbers for US, however, a recent report suggested that the US's $3.6bn credit card fraud cost accounts for 47% of all world credit card fraud!

I think we must be doing something right, but if you still disagree, feel free to back it up.

mr_fishbulb

chanz4 wrote: »

Why does your post contain external links.......

Because it's from here - http://www.consumeractiongroup.co.uk/forum/showthread.php?345610-Co-Op-Basic-Account-They-gonna-pay-payday-loan-and-let-me-go-overdrawn-Legal-ASAP-urgent-help-needed

Hanky_Panky

inmypocketnottheirs wrote: »

It is clearly flawed!!! Chip and pin has not stopped card fraud, just ensured that the victim is the customer and not the bank.

I haven't had a problem, either, that doesn't mean that the problem doesn't exist. If chip and pin was such a wonderful solution then why isn't it used in the US? The only reason for chip and pin was to pull the wool over the customers eyes by sneaking in the transfer of liability.

So Hanky Panky, if you were to suffer a loss due to fraud on your account you'd be happy to accept it? I had a friend who's card was skimmed in a fuel station and his account emptied of around £3k. The bank insisted he had given the card and pin.

Speaking to those in the know there have been no instances of chip AND pin fraud substantiated. There has been plenty of anecdotal stuff where the chip and pin has been used however these can usually be traced back to a family member or something similar which means the liability goes back to the card holder which is exactly where it should be.

On occaisions the mag strip is used together with the pin and this is where the bulk of fraudulant transactions occur and how the skimming/cloning type frauds happen - the bank can always tell the difference and can tell if the real card was used.

It has been possible to clone the chip in a lab experiemnt only but not anywhere else at this point.

You clearly have a belief that any type of fraud even if you were culpable should be covered by the bank. I believe in taking responsibility for my own actions.