How to complain about unauthorised transactions on your card
Lost or stolen credit cards
If you’ve had your credit card stolen or discover that you’ve lost it, you should report it missing straight away as it could affect where you stand legally if the card is subsequently used by a thief.
Your card provider should always refund you in full for any unauthorised transaction that takes place after you've reported your card missing, in accordance with the Consumer Credit Act.
If you don't realise for a number of days that your card has been lost or stolen, you should still be able to get your money back.
You can only be held responsible for the first £35 and should be refunded the rest of the overdrawn balance, including any charges incurred as a result.
If your credit card provider thinks you're responsible for the transaction or that you've authorised someone else to buy the item using your card, then it needs to prove this - you don't need to prove you weren't responsible.
If you were responsible for the transaction or authorised someone else to use your card, your card provide won't refund you anything.
Lost or stolen debit cards
The Payment Services Regulations state that if your debit card provider can show you've failed to take reasonable measures to keep your debit card and/ or card details (including your PIN) safe, then it the most it can charge you is the first £35 of an unauthorised transaction (previously £50).
If your card provider can demonstrate that the disputed transaction was a result of you acting fraudulently or with gross negligence, then it can refuse to refund you.
If your card provider thinks you've failed to take care of your card or bank details - or worse, that you've been fraudulent or grossly negligent - then it's for them to prove this.
Steps to take to get your money back
1. Notify your provider
You should notify your credit card provider of the disputed transaction as soon as you realise there's a problem.
Send your card provider any information you have that could help it work out what's happened.
For example, if you can show that you were in a completely different location from where the transaction took place, then it could help get the issue resolved if you pass that information on to your provider.
Help your card provider by sending through any information it asks for in order for it to investigate your claim.
You can use this letter template to ask your card provider for a refund if you card is stolen.
2. Escalate your complaint
If your card provider disputes that the transaction was unauthorised, ask for your dispute to be escalated through the card provider’s internal complaints process.
If your provider’s decision is final, then ask it to issue you with a final letter of deadlock so that you can refer your dispute to the Financial Ombudsman Service (FOS).
If your card provider suggests that you should have taken more care to protect your card or PIN, or suggests you've acted fraudulently or that you've been grossly negligent, make the point again that this is for your provider to prove.
You don't have to prove that you haven't been negligent or fraudulent - your provider must prove that you have been.
3. Take your claim to the FOS
If your card provider is still won't refund your money, you can take your claim to the Financial Ombudsman (FOS).
The FOS has a form where you can complete and submit a claim online.
The FOS will consider all the circumstances around the transaction and may ask you to supply additional information to help it make a decision.
Once it has considered the claim, the FOS will make a decision.
The decision is binding on the card provider but not the consumer so you're free to take your claim to court if you're not satisfied with the outcome.
You should think carefully though, before you start court action and consider whether a judge is any more likely than the FOS to find in your favour.
Even in small claims, you could be liable for court fees and some other expenses if your claim is unsuccessful.