Excess on Halifax Fraud Claims

polymaff

Just made a payment from a Halifax Reward bank account and saw a warning that if I proceeded with the payment and later made a fraud claim, Halifax would apply an excess of £100.

Is this new? Are other banks applying a similar excess?

Middle_of_the_Road

Yes it's new. If you lose money to fraud they are now legally required to refund you. Previously refunds were voluntary.
Some banks have introduced an excess though.

https://baringslaw.com/news-insight/banks-must-refund-fraud-victims-but-excess-charges-will-apply/

polymaff

Middle_of_the_Road said:

Yes it's new. If you lose £1,000 they are now legally required to refund you £900. Previously refunds were voluntary.

And if you lose £100 or less - get lost?

Middle_of_the_Road

polymaff said:

Middle_of_the_Road said:

Yes it's new. If you lose £1,000 they are now legally required to refund you £900. Previously refunds were voluntary.

And if you lose £100 or less - get lost?

Edited that post before I saw yours. 🙂 Hopefully a bank would flexible depending on the circumstances.

polymaff

"O Brave New World" !

eskbanker

Middle_of_the_Road said:

Yes it's new. If you lose money to fraud they are now legally required to refund you. Previously refunds were voluntary.

Participation in the reimbursement scheme was voluntary but is now legally mandated, but participants in the process prior to last month (such as Halifax) were obliged to refund, except where the payer was deemed negligent, etc.

Middle_of_the_Road

eskbanker said:

Middle_of_the_Road said:

Yes it's new. If you lose money to fraud they are now legally required to refund you. Previously refunds were voluntary.

Participation in the reimbursement scheme was voluntary but is now legally mandated, but participants in the process prior to last month (such as Halifax) were obliged to refund, except where the payer was deemed negligent, etc.

Ok, so if a bank voluntarily entered the scheme, they became liable for refunds, unless they could prove negligence?

My statement that refunds were voluntary would be broadly accurate in that the enrollment itself was discresionary.

eskbanker

Middle_of_the_Road said:

eskbanker said:

Middle_of_the_Road said:

Yes it's new. If you lose money to fraud they are now legally required to refund you. Previously refunds were voluntary.

Participation in the reimbursement scheme was voluntary but is now legally mandated, but participants in the process prior to last month (such as Halifax) were obliged to refund, except where the payer was deemed negligent, etc.

Ok, so if a bank voluntarily entered the scheme, they became liable for refunds, unless they could prove negligence?

My statement that refunds were voluntary would be broadly accurate in that the enrollment itself was discresionary.

Yes, your statement was broadly accurate but (to me) had connotations that there was discretion in how an individual refund decision was dealt with beforehand, so I just thought I'd clarify that at a transactional level there's no real difference in how institutions such as Halifax will assess cases since last month's change.

The ability to levy an excess is new though....

Nasqueron

polymaff said:

"O Brave New World" !

Unfortunately so long as banks are liable for customers ignoring the hundreds of warnings issued by banks, MSE, the government etc etc and they continue to give money away to obvious scams, they will always try and minimise their losses