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"Card fraud refunds being refused by more banks"

By admin | March 10th, 2009 | Credit Cards

A recent report has shown that more and more banks are now refusing to refund or compensate cardholders that become the victim of card fraud, with many trying to protect themselves given the surge in card fraud over recent years.

With the current recession and difficult financial climate, an increasing number of banks are unwilling to foot the bill when customers become the victim of card fraud, which could prove to be a double blow to cardholders that do find themselves on the receiving end of card fraud.

Research has shown that over the past year alone around 25 percent of Brits has become the victim of card fraud, and this equates to around twelve million cardholders. With such a surge in card fraud many banks claim that they cannot afford to refund or compensate consumers that become victims of this type of fraud if they cannot prove that they have been the victim of card fraud.

The study was carried out by card insurance firm CPP, and one official from the firm said: ‘We do find there are people who have not been able to prove the purchases have not been made by them – for example if their card details were used to purchase electrical goods close to their house. . These people have had to stump up the cash or go through their card protection insurance to get a refund.’

However, another industry official was not happy with the way that banks were reacting to these victims, stating: ‘The tactic of rejecting refunds to victims of card fraud is hard-wired into the policy of the banks. It is an ongoing scandal.’

Another official added: ‘If someone has been denied a refund in these circumstances then they need to persist. ‘They can complain to the Financial Ombudsman Service who has made clear the bank needs to prove the customer was negligent in some way.’

Tags: credit card refunds, credit card fraud

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