Bank repayment delays emerge

11/12/2009

Banks have been accused of taking too long to give customers the refunds they are entitled to under new rules.

A bank account holder was told that he needed to wait for two weeks for an investigation into his unauthorised payment to be conducted despite the fact that the regulations call for "immediate" repayment, the Daily Mail reported.

The Financial Services Authority (FSA) took over retail bank oversight on November 1st and imposed a rule stating that all customers who suffer from an "unauthorised transaction" must be refunded unless the bank has a "good reason" for its refusal.

These can include evidence that the customer has been negligent in allowing the payments through leaving their PINs exposed - or if the customer is suspected of having committed fraud themselves.

Speaking to the newspaper, bank customer Paul Cardwell said that he attempted to withdraw £250 from a cash machine, was refused, and later found out that the amount had been debited from his account.

His bank then told him that he would have to wait for a fortnight until the investigation was resolved.

Also commenting on the case to the Daily Mail, UK Payments Administration spokeswoman Sandra Quinn said: "The investigation of fraud has to be completed within a matter of days. Any more than two or three and you are pushing it."

The bank said: "The FSA has indicated that there is an implication that an investigation will be carried out first where appropriate and that the 'immediate' relates to the conclusion of that investigation rather than the point in time at which the customer raises the issue."

Delays in bank repayments of unauthorised transactions could push customers over their overdraft limits, incurring penalty fees.

They could also limit customers' ability to pay essential costs such as utility bills.

Tags; Debt Management and Banking, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle,

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