Plum Bank. Fraudulent bank withdrawal, bank will not reimburse.

FavouritePJs

Good morning, newbie here after some advise and reassurance please. I have a savings account with Plum, had it for about 4 years and helps me to budget. It’s set up so that any money that I withdraw goes to my nominated bank account and has worked well for me, until recently. I woke up the other morning to notifications of withdrawals from my
Plum account, when I logged in, all of my money had gone. I contacted Plum immediately and eventually they advised that the money had been withdrawn to my Plum card and subsequently out at an ATM, I don’t have a Plum card. Long story short and after a few days of Plum investigating they confirmed a card was applied for and a verification text was sent to my mobile phone, only the number they sent it to wasn’t mine, the card was also sent out to an address that wasn’t mine. The funds were withdrawn in Chiswick and Acton, I live in the Midlands. Plum claim I was negligent as the card was visible on my account on the 27th of March and I logged in on the 28th to transfer some funds and therefore I should have spotted it, they won’t therefore refund my money. However, it was the 27th I transferred the money, not the 28th, all entirely provable, and even if it was the 28th, surely they’ve already admitted liability by sending the card to a different address? I should also add there is no secondary verification, such as a letter or app notification of such a card so I absolutely had no idea. I cannot afford to lose £2000, it was money for my bills and I’m devastated. I have submitted a complaint and will then progress to the ombudsman if the complaint isn’t upheld but just wondered if anyone else had experienced anything similar? Thank you in advance x

MorningcoffeeIV

FavouritePJs said:

I have submitted a complaint and will then progress to the ombudsman if the complaint isn’t upheld but just wondered if anyone else had experienced anything similar? 

Don't wonder about that. Too many variables and you'll give yourself nightmares.  Just focus on your case.

Assuming you've not been grossly negligent or breached terms (eg sharing log in details), things should be fine.

datz

FavouritePJs said:

I have submitted a complaint and will then progress to the ombudsman if the complaint isn’t upheld but just wondered if anyone else had experienced anything similar?

I have never used Plum, but assuming your account of events is accurate, then I don't see what grounds Plum have to reject your claim - ultimately they sent a card/pin to an incorrect address and a verification request to an incorrect number. Relying on you to spot a card that had been added to your account isn't very reasonable, regardless of how obvious the app makes it. Surprised Plum's limits allowed £2k to be withdrawn at an ATM (even if was £1k before and after midnight).

If you aren't getting anywhere, then pursuing the complaint is your best option. Just be clear and concise with the details/timeline, and hope it doesn't need to be escalated to the ombudsman (you'll be in for a very long wait).

MalMonroe

Hi, I agree that you've done the best thing so far.

The bank was negligent here. I'm with Nationwide and would not be allowed to withdraw £2k at an ATM or even via my own account unless I'd applied and received verification so I think that Plum need to smarten up their act.  

I have to also say that I complained to the Ombudsman online last year and there wasn't a very long wait for them to sort things out for me. If you have to complain to them, then you have to. But hopefully the bank will see that their negligence has led them to accuse you of negligence. It's not your fault, you trusted them and they've let you down.

My savings account is growing slowly each month and I'd be heartbroken if someone stole everything that's in it. 

Wishing you all the best and hoping that the bank come to its collective senses.

saajan_12

FavouritePJs said:

Good morning, newbie here after some advise and reassurance please. I have a savings account with Plum, had it for about 4 years and helps me to budget. It’s set up so that any money that I withdraw goes to my nominated bank account and has worked well for me, until recently. I woke up the other morning to notifications of withdrawals from my
Plum account, when I logged in, all of my money had gone. I contacted Plum immediately and eventually they advised that the money had been withdrawn to my Plum card and subsequently out at an ATM, I don’t have a Plum card. Long story short and after a few days of Plum investigating they confirmed a card was applied for and a verification text was sent to my mobile phone, only the number they sent it to wasn’t mine, the card was also sent out to an address that wasn’t mine. The funds were withdrawn in Chiswick and Acton, I live in the Midlands. Plum claim I was negligent as the card was visible on my account on the 27th of March and I logged in on the 28th to transfer some funds and therefore I should have spotted it, they won’t therefore refund my money. However, it was the 27th I transferred the money, not the 28th, all entirely provable, and even if it was the 28th, surely they’ve already admitted liability by sending the card to a different address? I should also add there is no secondary verification, such as a letter or app notification of such a card so I absolutely had no idea. I cannot afford to lose £2000, it was money for my bills and I’m devastated. I have submitted a complaint and will then progress to the ombudsman if the complaint isn’t upheld but just wondered if anyone else had experienced anything similar? Thank you in advance x

Still some unanswered questions as to how this happened I think.. Can they shed any light on
- how and when the card was applied for, what security checks were applied then
- how the address was changed, or why the card was sent to a different address to yours
- how the phone number was changed, or why the verification text was sent to a different number to yours

I'd think those should be the primary control measures, not whether you noticed something because of a separate coincidental transaction. Unless they're saying the subsequent log in releases a level of security on the card activation, which would be madness.. 

FavouritePJs

Thank you all for taking the time to respond. @MorningcoffeeIV, you’re absolute right, it’s driving me mad, thinking about all of the what ifs and where I go from here, I’m trying not to but it’s very difficult. @datz, I only found out how the Plum card works after my money had been stolen, apparently no daily limits, hence it was all taken out overnight and had all gone by the time I woke up 😢. @MalMonroe, one of the things I added to my complaint was the fact that them claiming I failed to spot their negligence isn’t much of a defence!
@saajan_12 I agree, lots of unanswered questions, most of which their not keen to divulge unless there is a police investigation apparently!

Again, thank you all for taking the time to reply and offering some reassurance x

ForumUser7

@favouritepjs I’m very sorry to hear this, and I really do hope it all gets sorted! Just to add to the comment by  @malmonroe regarding the ombudsman - I experienced a long wait time too. I referred in august 2022, and I’ve only recently been ‘recommended’ a resolution earlier this month. I accepted, but the provider has so far not responded to the FOS. Do not let this put you off referring it further though - I’ve always found the service to be helpful, reasonable and effective - they just have a high caseload at the moment.

In circumstances of financial loss, if fully upheld, IMO, the FOS should instruct plum to refund the missing money, plus interest. They sometimes recommend 8% simple interest, but it of course does vary from case to case. It could just be the rate on your plum account. I would think there should also be a recommendation of compensation too, as this sounds like a very distressing and inconvenient situation. If you refer to the FOS, and not having access to these funds is making you vulnerable or in financial hardship - mention this to them. There are levers they can pull to expedite the assignment timeframe to a case handler if they find you’re eligible for this treatment. If this is already causing you financial hardship, then mention this to plum also, as it is important to let them know any effect it is having on you.

Good luck with your case

*I’m not a representative of the financial ombudsman service, or any financial provider/service. This is all just based on prior reading of decisions on the database, but circumstances vary so YMMV. If you wish to DYOR: https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions*

HHarry

Have you reported it to ActionFraud?  Maybe a crime reference number will focus their minds.

FavouritePJs

HHarry said:

Have you reported it to ActionFraud?  Maybe a crime reference number will focus their minds.

I have yes and notified Plum of the crime reference number.

FavouritePJs

Thank you @ForumUser7. I'm fully prepared for it taking a while to resolve, but not sure how i'll cope with the worry pending the outcome, i'm pretty tenacious though so will fight until the bitter end.

FavouritePJs

Well, I can’t quite believe I’m writing this but within a few days of me submitting my complaint to Plum they have acknowledged a card was ordered by a third party without my consent and refunded my money. No information as to how they allowed it to happen but I’m in a bit of shock that they have not made it more difficult for me and so relieved! It begs the question as to why they refused to refund it in the first place but they clearly knew they were on a hiding to nothing and they knew it would have cost them more in the long run. Thank you all for your kind words of advice and encouragement x