Dosh dilemma: Claire’s unauthorised payment

Claire contacted us this week pretty upset. £148 had disappeared from her bank account for something she hadn’t ordered and from a retailer she’s never even heard of.  

“That’s my Christmas budget completely ruined, unless I can get it back and fast.”  

“How do I get a quick refund?” she asked us.  

We know how stressful these situations can be Claire. They’re a nightmare, especially at this time of year. But don’t worry, we’ve got some good news.  

Your bank’s responsibility 

If someone’s taken money from your account without your permission, your bank has to refund it, unless they can prove you authorised it or were at fault. For example, if your bank can prove you didn’t take enough care to protect your account, such as failing to keep your PIN or password safe, they can refuse the refund.  

But the burden of proof is on the bank. They can’t force you to prove that the transaction was unauthorised. They can only refuse to refund you if they can prove it was your fault. 

Contact your bank immediately  

As soon as you spot an unauthorised payment, contact your bank. The faster you act, the quicker they can block any further charges. Once they’ve been notified, they must refund you for any unauthorised transactions made after that.  

Ask for a refund  

The Financial Conduct Authority says your bank has to return your money if the payment wasn’t authorised, unless, of course, you've been up to something dodgy. They’ll ask you some questions and you may have to fill out a form. But they can’t delay the refund when waiting for the paperwork, which should be in your account within one working day, with any interest or fees included. 

Why your refund could be refused