Not upheld: Card / payment disputes complaint against Starling Bank Limited

Decision detail

Summary

Miss K complained that Starling Bank refused to refund three unauthorised transactions totalling £3,423.62 made on her account after she lost her purse containing her card. Starling argued the transactions were made using her genuine card and PIN, suggesting either Miss K authorised them or was negligent in storing her PIN with her card. The ombudsman found that the sophisticated chip technology and correct PIN entry made it implausible someone else could have made these transactions without Miss K's knowledge, and her changing explanations about the PIN combined with failure to promptly report the card lost supported this conclusion. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that chip technology is sophisticated with no known instances of successful copying, so Miss K's actual card was used. With 10,000 possible PIN combinations and no failed attempts, whoever used the card must have known the correct PIN. Miss K's changing explanations about how her PIN was compromised, combined with lack of evidence that she reported the card lost promptly, led the ombudsman to conclude Miss K either authorised the transactions, gave someone else her card and PIN, or was grossly negligent in storing her PIN with her card.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website