Not upheld: unauthorised transactions / disputed debit card transactions complaint against Nationwide Building Society

Decision detail

Summary

Miss P complained that Nationwide was holding her liable for £26,585.73 in unauthorised debit card transactions that occurred while she was on holiday, claiming her ex-partner had fraudulently accessed her account using a stolen debit card. Nationwide had refunded £1,585.73 but refused to refund the remainder. The ombudsman found that while there was a potential point of compromise for the card and PIN, Miss P's testimony was unreliable due to multiple inconsistencies and implausibilities, including her claim of not knowing about two loans taken out in her name when evidence suggested she did. The spending pattern over two weeks at various retailers was inconsistent with fraudulent activity. The ombudsman upheld Nationwide's position that the transactions were authorised and properly authenticated.

The Ombudsman's reasoning

The ombudsman found that while there was a point of compromise for the debit card and PIN through the ex-partner's potential access, Miss P's testimony was inconsistent and implausible on several key points. The ombudsman found it more likely than not that Miss P knew about both loans, as the first loan was credited to her account as a 'personal loan' with funds subsequently transferred to her own accounts, and she received notifications about the second loan. The unusual login pattern (daily logins before the holiday, none during the disputed period, then resumption after) contradicted her explanation about leftover funds. The nature of the spending—over two weeks at various retailers with different values—was inconsistent with fraudulent activity. The ombudsman concluded the transactions were authenticated and consented to by Miss P.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website