False charge back

I think my friend has committed a money offense

 

So he signed up to a partnered trading scheme (Trading prop firm) and this firm then went bust and closed down. They changed all their terms and conditions and lied to customers. He emailed and requested a refund for the original purchase which they gave to him. It was refunded 3 months after purchase. 

 

A few month later (8 month later) he applied to complete a chargeback with his bank as he “Forgot” he received the refund originally and others in his funding group applied the chargeback. He has since applied for a chargeback with the bank which was approved so he was refunded twice. This is quite a big payment of around £500 and he was showing me his bank account where he was refunded and then refunded again later. He was bragging which is annoying since I am struggling financially now with increased costs. 

 

My question is how could the bank not notice this? Surely, they would look on the bank statements and see this was already funded.

 

I feel like I should report him but he is my friend. What is your advicE

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Replies

  • dunstonhdunstonh Forumite
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    My question is how could the bank not notice this?

    The bank ask the recorded administrator if there is any reason they should or should not refund.   If they get no response, they refund.

    Surely, they would look on the bank statements and see this was already funded.

    Good grief no.  

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Moneygrabber89Moneygrabber89 Forumite
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    Surely that’s not fair
  • phillwphillw Forumite
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    Surely that’s not fair
    chargebacks can be reversed at a later date, it's possible they will notice it.

    But no, if he got refunded twice then it's not fair. It's up to you how you feel about it.

  • FarfetchFarfetch Forumite
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    The money is supposed to come from the bank of the seller (though some would argue it's from the bank itself as it's easier / cheaper for them to just refund low amounts) so if the firm is bust then he'd probably get away with it, but if they are not, they will likely come after him for the money and could take him to court if they wished

    He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery.

    -Harold Wilson


  • maisie_catmaisie_cat Forumite
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    There is not a huge amount you can do, everybody has friends or family who cheat banks/DWP/insurance companies/retailers. The only thing to do in my experience is to distance yourself from dishonest people. 
  • Moneygrabber89Moneygrabber89 Forumite
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    I hope so
    Not really a friend just somebody i occasically drink with as a group. My feeling is they wont bother for £400. I thought his bank fine him
  • TOP_CATTOP_CAT Forumite
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    Whats the time limit on chargebacks ?




  • edited 4 May at 3:55PM
    SandtreeSandtree Forumite
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    edited 4 May at 3:55PM
    The issue is probably that the original refund wasn't properly processed as a refund and so whilst the bank will see money having been paid into his account its not marked as a refund else the chargeback would probably have failed the banks own checks. The bank will have no idea what the inward payment is for and wouldn't be their place to speculate as long as there are no obvious hints of illegal activities/sanctions issues etc

    If the business is now insolvent the administrators may see the charge back and the previous refund and either challenge the chargeback (you haven't said when this was made) or pursue him as a debtor however they will clearly have to make a cost/benefit decision on if pursuing for £500 is a worthwhile endeavour considering the costs involved and probability of success
  • Moneygrabber89Moneygrabber89 Forumite
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    so looks like hes getting away with it.

    Its frustrating.

     

    I have an claim with a bank for a data protection breach and that has been so complaicated they look into everything so annoying how missed.

     

    I am claiming against a major bank as they sent my statement to somebody else with all my details on. I received another persons statements and account info and they confirmed the person working on the accounts was the same person so likely to have mixed up our documents. This has been a huge claim and lots of work as it affected my mental health due. I already have bead mental health and worry about social media and people getting my details etc. I have had to get psychotic reports on my health, doctors notes etc. Only now have we issued proceedings for court.

     

    I will probably not even get a lot as they are denying it saying no confirmation letters went to somebody else but it annoys me as this whole process has took me 3 years and my friend gets free money for nothing


  • edited 4 May at 8:48PM
    TOP_CATTOP_CAT Forumite
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    edited 4 May at 8:48PM
    "A few month later (8 month later) he applied to complete a chargeback with his bank"

    From the Which Money site below
    There is a time limit on chargeback claims - typically 120 days from the transaction processing date, or from when you expected to receive the goods/service if it’s being delivered. So, contact your bank as soon as you identify the problem because the clock may have already started ticking.
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