Fraud liability

thechatking

If my cards (credit and debit) get lost or stolen, am I liable for what is spent on them?

YorkshireBoy

thechatking wrote:

If my cards (credit and debit) get lost or stolen, am I liable for what is spent on them?

Probably yes, but to a limited amount providing you notify the issuers as soon as you are aware they are stolen.

Just how much (if anything) will be determined by your individual issuers T&C's - those that you signed when taking out the products (unless they've been superceded since originally issued).

You can buy cover in case of such an incident, which with one phone call will cancel "everything in your wallet". I don't have it but if you're worried you might need it, I believe it costs around £20-30/year.

I believe "Sentinal" is one such company. Search the forum for "credit card protection" for further reading.

thechatking

The reason that I asked is because I've just cancelled my Natwest card protection and am having second thoughts about whether it is worth the £16 a year they offered it for.

Apparently, I'll get £1,000 protection before reporting and £50,000 afterwards, which ain't bad. However, nicely related to the issue with PIN numbers, they'll only pay up to £50 where a PIN number has been used. That is precisely why I don't want Chip and Pin.

grumbler

Usually you are not liable for any fraudulent use of your card. Typical clause (A&L / MBNA):

There is no liability or excess to pay for theft, loss or fraudulent Internet use - as long as you tell us as soon as your card cannot be found or you notice any unusual transactions on your account.

For Natwest: Credit Card General Conditions

If the card has been misused before you tell us of its loss or theft, or that someone else knows the PIN, you will only have to pay up to £50 for any misuse.
If the card is misused by someone who has it with your permission, you will have to pay for all transactions carried out by that person.
If someone carried out a fraudulent transaction using the card details on the internet or by telephone or mail order you will not be liable for the fraudulent transaction.
Once we receive notice of the loss, theft or possible misuse, we will cancel the card and you will not be liable for any further transactions.

I don't think it is worth paying £16 p.a. to insure £50 liability.

thechatking

grumbler wrote:

I don't think it is worth paying £16 p.a. to insure £50 liability.

Neither do I, the cheeky buggers. If someone looks over my shoulder in a shop, then nicks my card outside, it's somehow my fault. Brilliant.

Rafter

The government decided back in 1974 that individual card holders should not be responsible for fraud but that it should be shared by all card holders through the charges made by credit card companies.

Even with Chip and Pin, as long as you report your card stolen before it is used, there is no charge to you.

We should not all get paranoid that every shop worker or fellow shopper is out to defraud us! As long as you take care of your cards and report your card missing or stolen straight away, there is no possible reason to be concerned.

Similarly these scare stories about pay at pump or fast tills at supermarkets. If the card is reported stolen it won't work in these machines.

R.

thechatking

But what if it's used before you notice (or before you can get to a phone) and someone spends £5,000 using your PIN? Hardly seems fair that the individual must pay.

And in the case of this card protection, Natwest explicitly say that they will only pay £50 for PIN-related thefts. And if everyone's automatically protected against fraud, why do card protection plans exist?