Am I legally entitled to payback £10,000 when a fraud was committed on my account?

Question

In 2002 I lost my wallet and told the bank 2 days later...someone during this time put 2 cheques into my account (for approx £5,500 each) and then withdrew the money the following morning before the cheques had cleared and before the banks had opened. I have been paying £10.00 for the past few years but am still very bitter at this. Am I responsible to pay all this money back? Does anyone know what rights I have?

Answer 1

if your bank has fraud coverage then your entitled to it back although it sounds like if u explained this situation to them and this is what theyre doing then they probably dont have fraud coverage

Answer 2

You are talking in pounds and I am not sure if you are from America, but I will tell you the American laws. I am in an MBA business law class now and we actually covered this situtaion type last week. Since you lost your wallet, it is your fault that someone had access to your account items. Sad but true, the law is strict. You would be considered the least innocent party. However, the checks being depositied into your account, that does not require asking for id. HOWEVER, When the checks were withdrawn the next day, it would be the banks fault because they did not id the person using your account. But the tricky part is that the person withdrew the money before the checks were even cleared and when the banks were closed, but maybe you had enough already in your account or maybe they overdrew your account? I am not sure. The best advice that you could use is to speak to a lawyer who knows the answer 100%. I am only sure up to a certain point. Sorry I could not help you more.

Answer 3

Sorry but this question doesn't stack up .... how on earth could someone withdraw ten grand on cheques that haven't cleared. With my bank, that cannot happen without the cheques having fully cleared. But more to the point, banks take great care over withdrawals of £5500 ... they would have needed ID and the like plus probably notice of the withdrawal for that large amount ..... how on earth did they withdraw that amount though ATM's? Were the police involved in this fraud? And why did you not inform your bank on the day of the loss? Clearly, the bank think that you were solely responsible for the loss ..... but if you remain bitter, take legal advice. But more interestingly, why are you asking this question some five years after the event?

Answer 4

I don`t understand how they could get the money before the cheques had cleared.
When you told the bank is important though, because you should call them as soon as you know your cards are missing. Did you call them when you knew or did you wait 2 days?
The bank should have investigated the fraud and sent you a letter about the outcome. If they didn`t then i would write to complain, the next step is the financial ombudsman.
Also if you left any info like a pin no. in your wallet, then you are fully liable.

Answer 5

I guess it really depends on where you live. I had something like that happen to me, but with 3 checks and the total was about $17,000 (USD) and the bank took care of it.

They filed an insurance claim for their losses and I was out nothing but the hassle of going through all the paperwork, which trust me was a hassle. This was through Bank of America in the United States.

My aunt had a similar experience but much smaller, her amount was about $3,000 and her bank (I think it was Wells Fargo) did almost the same as in my case although they took MUCH longer doing it - about 30 days in all.

So yes, I would be bitter too if the bank was making you pay for something you didn't do. You are the victim here and I would be bitter too if my bank demanded that I (the victim) refunded the lost money.

Answer 6

If YOU withdrew the money, you would be required to pay it back. If the bank allowed ANYONE to withdraw money from your account without YOUR permission, THEY are liable. You should not NEVER have been charged for any of this amount.

Answer 7

Hi there.
Poor you no wonder you feel bitter. My understanding is that you do NOT have to pay this back and you should contact the banking ombudsman for free advice. Failing that I would suggest that you contact high profile sources like Watchdog. Either way you should fight it to ensure that it doesn't happen again either to you or other innocent victims.

Answer 8

You would be responsible for your account cards checks etc up till the time you told the bank is what i herd sometime ago, if the person was caught you may have a claim for damages? but heay each day and each persons advice in the uk are different even if they work for the same bank.

Answer 9

You may not have been liable for the debt but since you have started making payments you could be deemed to have admitted the debt.

You need to speak to the bank, your MP, a journalist and the Financial Ombudsman (google it).

Answer 10

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