Customers being refused compensation by banks after debit card theft : Credit Card Guide

Customers being refused compensation by banks after debit card theft

A number of banks are refusing to compensate or refund customers who have money stolen from their accounts following the theft of their cards by thieves.

The Chip and Pin technology that has been in use in the UK over recent years is supposed to be practically fraud proof, but this is not the case, as thieves can clone cards and put a new PIN number onto the card – this is known as a YES card.

However, it appears to the bank that the original card and PIN have been used, and therefore banks claim that either the customer carried out the transaction themselves or they gave their PIN number to someone or were careless with the security of their PIN.

One NatWest customer explained that he had a card stolen and hundreds of pounds was stolen from his account. However, the bank refused to compensate him, despite the fact that CCTV footage was passed on to police by the bank.

He stated: 'They said I was irresponsible with my Pin number, but I said there is no way that could have happened. I have had the same Pin for six years and haven't written it down anywhere. I recited the 12-digit number on the card then and there, as well as the Pins to all of my debit and credit cards. I don't forget things easily.'

He also added: 'They said they would forward CCTV footage of the event to the police, but I won't be compensated regardless of this because the criminal had my Pin number. But how could he have stolen it off me? Would someone break into another's locker in the off-chance their Pin number was written somewhere in their wallet?'

The customer had two cards stolen, the other being with the Halifax. However, the Halifax did refund the stolen cash from that account.

Tom Smith
20th October 2007

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