Unusual £800+ Debit Transaction – Fraud, Impulse Spending, or System Error?

kah22

I’m hoping to get some advice about a  situation I’ve never come across before. It involves my friend, who has a serious mental health condition that sometimes leads her to engage in uncontrolled shopping sprees. Recently, she discovered a debit card statement showing a payment of over £800 from a company that, as far as I can tell, is no longer trading. Given that she lives in a small community, it seems unlikely she could have spent that much money if she were fully in control of her actions.

All her income comes from benefits (including PIP), and while she’s an excellent saver when she’s stable, she can blow it all while on a high. I understand that, since this was a debit card transaction, it won’t be covered for loss. However, this large, unusual transaction makes me wonder—do banks flag this type of purchase as potential fraud or system error?

I’m accompanying her to our local Ulster Bank branch (where everyone knows her and even her pet dog gets a warm welcome in the manager’s office) tomorrow. I’d appreciate any advice on what questions I should ask. Should I be treating this as a potential case of fraud, or is it more likely just an error?

Im trying to encourage her to ask what the bank can offer to customers in situations like hers where safeguarding against wild overspending. For instance, are there measures in place such as limits on one off direct payments, alerts for high-value transactions, or automatic notifications when an account balance drops below a certain amount?  Her bank is the Ulster Bank§§

Thanks in advance for your help,

user1977

What sort of company is it? That might give us some clues as to the likelihood of fraud.

kah22

Gardening plus flower.  I could give the name but I’d assume that’s against forum rules

Shows 

21 Feb 2025

Accounts for a dormant company made up to 31 July 2024

 and this goes way back past 2019 when it was formed !

marcia_

kah22 said:

Gardening plus flower.  I could give the name but I’d assume that’s against forum rules

Shows 

21 Feb 2025

Accounts for a dormant company made up to 31 July 2024

 It's not against forum rules unless you are slandering them without evidence and especially since it's a dormant company, 

user1977

kah22 said:

Gardening plus flower.  I could give the name but I’d assume that’s against forum rules

Shows 

21 Feb 2025

Accounts for a dormant company made up to 31 July 2024

 and this goes way back past 2019 when it was formed !

Are you sure you’ve got the right company? The closest-matching name on Companies House isn’t necessarily the one they’re currently trading under.

if you tell us the name it would help. Is it the sort of thing she might spend money on? Doesn’t immediately sound like a likely fraud.

cannugec5

kah22 said:

I’m hoping to get some advice about a  situation I’ve never come across before. It involves my friend, who has a serious mental health condition that sometimes leads her to engage in uncontrolled shopping sprees. Recently, she discovered a debit card statement showing a payment of over £800 from a company that, as far as I can tell, is no longer trading. Given that she lives in a small community, it seems unlikely she could have spent that much money if she were fully in control of her actions.

All her income comes from benefits (including PIP), and while she’s an excellent saver when she’s stable, she can blow it all while on a high. I understand that, since this was a debit card transaction, it won’t be covered for loss. However, this large, unusual transaction makes me wonder—do banks flag this type of purchase as potential fraud or system error?

I’m accompanying her to our local Ulster Bank branch (where everyone knows her and even her pet dog gets a warm welcome in the manager’s office) tomorrow. I’d appreciate any advice on what questions I should ask. Should I be treating this as a potential case of fraud, or is it more likely just an error?

Im trying to encourage her to ask what the bank can offer to customers in situations like hers where safeguarding against wild overspending. For instance, are there measures in place such as limits on one off direct payments, alerts for high-value transactions, or automatic notifications when an account balance drops below a certain amount?  Her bank is the Ulster Bank§§

Thanks in advance for your help,

You say recently discovered, but how recent was the transaction? Has she received anything ? Has she had any communication about deliveries expected? If it was an instore transaction has she a paper receipt? 

Was it perhaps something like garden furniture ordered for delivery later? 

I think going through her emails including spam folder might give her some clues. 

I think much more information is required to ascertain if there was any foul play. I do agree that it might be appropriate if the bank is able to set limits on her spending but not sure how they can in practice. 

born_again

A lot is going to depend on how the payment was made, as to finding out who they are.

Banks have to have departments now to look after vulnerable customers. But unless branch has reported this. Then nothing will be in place. 

Grumpy_chap

The forum could probably provide better advice if the secrecy is lifted.
All we know is far is that the individual made a payment of £800.
No information of when the payment was made.
No information of who the payment was made to.
No information of what the payment was for.
No information of where the item purchased was delivered and where that item is now.
(Assume it was an item purchased, not a service.)
These are important details as they may influence what options are now available.

TELLIT01

It isn't necessarily fraud or system error.  As the OP says the friend manages her own finances and sometimes goes on spending sprees.   As born_again has said, unless her mental issues have been flagged to the bank, and they have been requested to question any large/unusual spends, they have no liability.

kah22

The company Bernish View Traders Ltd
The purchase was made on a debit card and verified by pin

Voyager2002

Two separate issues:
1. ask what the bank can do in future to protect your friend: placing limits on transaction amounts, sending notifications and perhaps opening a savings account without a debit card should all be fairly easy;

2. this transaction: the bank should certainly be able to provide a little more information. If she paid for something that was not provided then she should be able to claim "chargeback".