fraudulent use of maestro card: bank won't refund me for 6 wks

pigeonpie

I got a call last week from my bank's fraud dept (Clydesdale) asking if a recent transaction of £1300 to dabs was all right as they thought it was suspicious. It was fraud, so I stopped the card immediately (maestro card). I went into the bank/branch and filled out their fraudulent use papers etc, but they will only credit my account with the 2 x 1p transactions that the fraudster used to test the card number, not the £1300. They say that I must wait until their fraud dept sorts it out with dabs, which could take up to 6 weeks. In the meantime, I can have a 1% overdraft up to £1300. While I think I could get this fee free, I am angry about the time they say it takes and why they can't credit my account right now. They spotted the fraud (they say) within 15 mins of it happening and their fraud dept pretty much admitted that other customers had been hit, ergo they were on the look out. However the debit went straight through; wasn't even a pending transaction for 12 hours! I checked my ac online again today and the debit is still there like a fat ugly boil.

Last year my credit card was also defrauded and the MBNA recredited my account immediately I reported it.

What are my rights before I write a nice letter to the Manager?

simongregson

Do you have a branch? If you are the sort of person who is confident enough, you could try turning up and complaining about the bank refusing to give you back your money. Don't shout, but make sure everyone else can overhear you. Refuse to leave until you get to see someone who can deal with the problem. If they say that they are busy, offer to wait.

If you'd prefer not to do this, write a letter stating that unless the money is returned to your account pending the outcome of the dispute within say 1 week, you will refer the complaint on to the financial ombudsman. Certainly do not pay any interest on the overdraft they have granted you! Demand that this interest is returned to you.

Once your money is returned, consider changing to a bank with a more reasonable attitude.

It is up to them to prove that you authorised the transaction, not up to you to prove you didn't.

pigeonpie

I did ask nicely in branch, but as next to me there were a couple of foreign tourists and another bloke demanding to 'see the manager' straight away, I didn't get very far. It's a silly bank which takes me 1 hour to get to. I will write. I've thought of changing but from the moans they seem all as bad as each other! I would change if this goes wrong though. Do you know what dabs' role is in this -what happens if they refuse to sort it out?! (eg if they have despatched the fraudulently 'bought' goods).

lesley1960

I had a large amount go missing from my business account via a debit card , it took a few weeks to get the money back , and then i think it was only because i kept pestering , to be fair to the bank they refunded me the money even though they had no chance of getting the money back theirselves , but i do think you will have to keep on to them.

morg_monster

They should refund the money to you pretty much asap and then worry about how they will get the money back off dabs - that isn't your problem at all.
I can tell you that is Nationwide's policy having unfortunately had to go through this a few weeks ago - in total 20 or so fraudulent transactions in one day, totalling £1500. I noticed and rang them as soon as they were pending, they cancelled the card and I had to ring back the next day once the transactions started appearing. They initialised chargebacks to my account that same day and all the money was back in my account within about 8 working days (was supposed to be 5, but hey). I was really pleased with them.
Again, I can only reiterate what others have said, this really isn't acceptable, especially the 1% o/d bit!!! Write them a sternly worded letter asking for the money back by X date, and an interest free overdraft until the money is back in. Also tell them that you will be moving your account unless they sort this out to your satisfaction. As for the ombudsman - as far as I know you can't refer the case to them until the bank have come to the "end of the road" and still not sorted you out to your satisfaction, however you can certainly threaten and they will know you are aware of your rights.
You could try quoting other banks' policies on fraud which are at odds with theirs as well and ask them to explain why they operate differently.

pigeonpie

any links or correct info on how other banks deal with this please? (thanks for the Nationwide example). We are in the realms of T&Cs instead of stat protection (as with credit cards). The bank told me that their chargeback dept will deal with it, but there's a backlog as there are so many fraud cases to deal with at the minute, so be careful out there!

simongregson

It's in the banking code, which most UK banks subscribe to.

jonesMUFCforever

I think ALL charges should be refunded and the O/D should be interest free unless it is found out that OP did actually make the transaction.

pigeonpie

To compound the problem, the morons have just reissued me with a card in the wrong name so I'm still unable to draw cash unless I go into the branch. Plus I have to write and tell them it's the wrong name and only then will they re-order another one (aaaaaaah). Plus no updates on the situation and no sign of my refund. Just a phone call to my OH saying that we have a backlog as there's so much fraud at present. My credit rating's affected by my not being back 3 years yet in the UK but as soon as I have, I'm off to another bank. Truly unbelievable. Currently working on Very Fierce Letter.