LloydsBank fraud madness

moneybags1957

This week I discovered a fraudulent pending transaction ( see my other post in insuance section) On going into my branch and trying to stop it I was told payment would have to go out and then reclaimed., this was repeated to me again by the fraud department when cancelling the card that was used in the fraud.

IT SEEMS MADNESS to me to let the money (£158)leave my account . I did get immeadiately refunded but it did affect my available balance for a while, what if it had been for a large ammount?
Also I was told that if the requesting company challenges the charge back it could be longer, thank goodness they were genuine and agreed it was fraud.

JuicyJesus

he payment itself hasn't left your account, an amount has just been authorised, so there is nothing to charge back yet. They can't actually prevent the money going out once it has been authorised, they can only deal with it after the fact.

That is unfortunately how card payments work.

eskbanker

moneybags1957 wrote: »

Also I was told that if the requesting company challenges the charge back it could be longer, thank goodness they were genuine and agreed it was fraud.

FCA regulations mandate that

the bank must refund the payment without undue delay and by the end of the business day following the day on which it became aware of the problem, unless it has reasonable grounds for suspecting that you have acted fraudulently

moneybags1957

JJ that still left my available balance fraudulently reduced by £158 for a couple of days.
In my world reported fraud money would be frozen untill resolved.

IanManc

moneybags1957 wrote: »

JJ that still left my available balance fraudulently reduced by £158 for a couple of days.
In my world reported fraud money would be frozen untill resolved.

When you take charge of the world then don't forget to let us know.

deadendwaterfall

eskbanker wrote: »

FCA regulations mandate that

Do any unauthorised overdraft fees if it took your account into an unauthorised overdraft have to be reclaimed separately or would it be part of the process?

eskbanker

deadendwaterfall wrote: »

Do any unauthorised overdraft fees if it took your account into an unauthorised overdraft have to be reclaimed separately or would it be part of the process?

I could be wrong but don't think the FCA is prescriptive about this so believe that it would be up to each bank to take care of it in their own way, but imagine that it would be a relatively unusual scenario that would probably be handled manually by exception....

JuicyJesus

moneybags1957 wrote: »

JJ that still left my available balance fraudulently reduced by £158 for a couple of days.
In my world reported fraud money would be frozen untill resolved.

And if they'd knocked off the authorisation from your available balance the amount would still have left your account whenever it was debited and you'd still have had to call up and get it reversed.

This isn't Lloyds, it's literally how every single credit and debit card provider works.

Chino

JuicyJesus wrote: »

the amount would still have left your account whenever it was debited and you'd still have had to call up and get it reversed.

No it wouldn't because there would be no authorisation for the transaction so when the retailer submitted the transaction for payment it would have been rejected.

JuicyJesus

Chino wrote: »

No it wouldn't because there would be no authorisation for the transaction so when the retailer submitted the transaction for payment it would have been rejected.

Nope. Authorisation for the transaction is secured when the transaction itself is originated and the issuing bank confirms it - either at point of sale with swipe or chip and PIN, or via a card not present transaction. As soon as the issuing bank has agreed to allow the transaction, that is it - the authorisation is irrevocable and the transaction will debit if the merchant claims it. What happens to the actual authorisation hold, the deduction from the available balance in expectation of the transaction debiting, is irrelevant - there is no means for a bank or cardholder to revoke authorisation for a transaction between the point of it being originally authorised and the transaction debiting - only to dispute and charge back after the fact.