Fraudulent Use Of Credit Card - Zero Liability?

[thr33stripes]

I had my wallet stolen when I was in a bar on holiday and two of my cards (one debit and one credit) which were used to rack up a number of transactions in a very short space of time that amounted to quite a significant value.

My debit card issuer (Nationwide) paid back all monies, however my credit card issuer (MBNA) have refused to do so. This despite publicly stating on their website a zero fraud liability "If your MBNA card is used without your knowledge or consent, you will not be liable for fraudulent use." [more info: http://www.mbna.co.uk/protection-sec...e-protect-you]

They have stated that I cannot prove that I didnt know the card was being used and that negligence may have played a part.

Any advice on where I stand and what I can use to base my claim/case on?

Many thanks

[leclerc]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Did you report it to them at the earliest possible time?
Did they put a hold on the card?
Furthermore, can you tell me a little bit of the circumstances of the theft and more importantly, what you told them?

[thr33stripes]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Hi,

Thanks for your response - it's appreciated.

So it wasn't until approximately three weeks later until I noticed the transactions [I rarely use the card in question] but as soon as I did I alerted the issuer, they then cancelled the card and sent a replacement.

Two things which are probably very unusual in my case, are that I actually worked for the card issuer at the time [I have since left - completely unrelated], this is probably irrelevant but thought worth mentioning and also the fact that although the card/wallet was out of my possession at the time the transactions were made, it was returned to my jeans pocket without me noticing...the reason why I was only alerted to these transactions taking place until three weeks later.

In terms of the theft - I'd earlier paid for a round of drinks in the bar using my card, so can only assume that this is how they got the PIN. It is in this bar and an ATM nearby where all of the transactions took place - I have provided the address and such.

I've been as honest as I can be - told them I was away on a weekend trip with friends [in Krakow, Poland] have said that yes I had consumed alcohol that evening, but can say that I was not drunk. Pretty much been as open as I can be about events.

Hope this helps, but if you'd like any additional information just let me know!

[leclerc]

Re: Fraudulent Use Of Credit Card - Zero Liability?

The information above is more alarming to me because of the fact that you wallet was removed from you and then returned. What MBNA are possibly stating is that you were in cohort with the alleged fraudster.
Was there transactions for cash or were they purchases? Was the amount of the purchases above £100?

[thr33stripes]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Yes I know. I think that's what they're inferring without explicitly stating that.

As I mentioned I was an employee of theirs at the time so wouldn't even have taken a risk at any cost to jeopardise my employment. Furthermore, I was with friends who can substantiate my claims.

Yes the value of transaction was way above £100.

My other argument is the spending patterns, types, location, time and frequency were so out of keeping to my account history I can think for one minute how they even can suspect it was me or that their fraud detection system did pick this up.

[leclerc]

Re: Fraudulent Use Of Credit Card - Zero Liability?

I had a quick chat via Private Message with Bluebottle as he was in another life, a policeman.
Am I right in saying that you reported the suspect transactions as soon as you were aware of them?
Did the bank issue you with a new card and cancel the old one?

Did you tell them that you were going to Poland?

I know this may sound odd but I think you need to challenge them and state that you formerly worked for them and that you did everything that you should to protect your card and PIN. Furthermore, their own system should have at least have picked up on the transactions and either stopped the card as a precaution(especially if you did not tell them you were abroad) or at least flagged up.

Ask them for a final answer as you are taking it to the FOS. However, please do not speculate to MBNA or the FOS what might be the cause of this since clearly that does not help. I do think you should state that at the time you worked for them so would have protected your cards from fraud and that the fraudulent use on another bank's provider at the time has already been refunded.

I would be tempted to suggest non delivery of goods paid for, however, that would be more dodgy because it could be suggested you had bought them in the first place

[thr33stripes]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Hi,

Thanks to you (and Bluebottle) for taking the time to look at this for me.

Yes I notified the bank and the local police as soon as I became aware of the transactions. As you also mention I hadn't told MBNA that I was visiting Poland so they cannot have been expecting any transactions from there on this account.

I had also spoken to the former Head of Fraud at the bank who said that despite being unlucky and naive, I hadn't authorised card use nor disclosed the PIN so should have the monies refunded - they're challenging any claims due to the amount they're having to payout due to PPI.

I follow your advice and keep my fingers crossed!

I'll let you know how it goes.

Thanks again.

[The Enforcer]

Re: Fraudulent Use Of Credit Card - Zero Liability?

This is a simple case and one which I have assisted a number of individuals with. Your reference is the Consumer Credit Act, where in essence, it is stated even if the card holder was negligent, the card holder is not responsible for transactions which were not authorised. View the following linkfor more informaiton http://www.thisismoney.co.uk/money/s...Ombudsman.html

[gravytrain]

Re: Fraudulent Use Of Credit Card - Zero Liability?

And section 83 of the CCA

[thr33stripes]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Hi,

Thanks to everyone who advised with this - it's been a while. Unfortunately the case was rejected by the FOS on the grounds I couldn't provide enough evidence. Any ideas on what I can do next?

Thanks in advance.

[EXC]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Not sure if this has been suggested but I'm wondering if you could make a section 75 claim if the card was used to buy goods or services you never received.

[enquirer]

Re: Fraudulent Use Of Credit Card - Zero Liability?

They have stated that I cannot prove that I didnt know the card was being used ...

This argument is capable of infinate extension, and as such, is nonsense. In short, they are trying it on.

... and that negligence may have played a part.

They can either prove it, or they can't. Speculation is no basis for avoiding contractual obligations.

[thr33stripes]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Thanks EXC and Golden Retriever.

The card was taken in a restaurant/bar they ran up a fictional bill/transaction, whilst the rest was withdrawn as cash - would section 75 cover that?

That's my point exactly - they cannot prove anything to the contrary. I've complained via MBNA's internal complaints procedure and then through the FOS. Are there any other channels I can use which won't cost me in legal fees?

[EXC]

Re: Fraudulent Use Of Credit Card - Zero Liability?

The cash withdrawals won't be covered by sec 75 but the purchases should be.

See attached doc.

It might be helpful if you could post up the text of the FOS decision, removing any personal details.

[thr33stripes]

Re: Fraudulent Use Of Credit Card - Zero Liability?

Hi,

Apologies that it's been some time in replying to the last post. Please find attached the response I received from the FSA....still reading it now makes me angry!

Would Section 75 of the CCA cover the cash transactions?

Again - many thannks for everyone's help with this.