Debit Card

Mrs_Retired

Does anyone know whether there are rules regulating the stopping of a payment on a debit card by the bank - by the bank's fraud department? I made a payment on my debit card for car insurance, the bank called the following day to check it was a genuine payment and I told them it was. The assistant then said they would authorise the payment. I was not told that I had to repeat the payment process and subsequently the insurance company cancelled the insurance because they said it had been refused and that they do not apply for payment more than once.

dalesrider

banks are obliged to have security systems in place to protect customers accounts and the banks from fraud losses.
Fraud to pay insurance is on the up.

While the bank has done the right thing in blocking the payment. You were missadvised that they would authorise the payment (can't be done) once it has been declined. The ins co needs to represent for the funds.
But also the ins co have to stand some of the blame here.
You should have got a decline message when making the payment and they should also have sent you email/letter advising of the need for you to make a payment.

Ins co's often apply for funds more than once. But that may just be certain co's. As they should be fully aware of the fraud systems in place.

Mrs_Retired

Thank you for that. I had a conversation with the bank today and they acknowledged that they had failed to advise me to repeat the payment process with the insurance company. The bank was covering its own position in order to avoid havng to bear loss as a result of fraud - in so doing they were not looking after my interests. My view is that in these circumstances the bank should invite the insurance company to apply a second time for the payment. The issue is being escalated and no doubt the assistant who purported to authorise the original payment will be re-trained or disciplined.

dalesrider

Mrs_Retired wrote: »

. My view is that in these circumstances the bank should invite the insurance company to apply a second time for the payment. The issue is being escalated and no doubt the assistant who purported to authorise the original payment will be re-trained or disciplined.

Bank cannot invite the ins co to apply a 2nd time. That is upto the retailer to do. Only the retailer will know who the payment related too.
Retailer takes from bank, not bank send to retailer.

Said staff member will be getting some retraining and a kick up the backside.

I still cannot understand why the ins co did not contact you to say payment not taken.
I would complain to them on this matter. As they have to share as much of the blame as the bank.