I have now gained legal counsel and I am looking forward to taking it to court as the bank don't have a legal leg to stand on. If anyone has similar problems with the bank you should refer them to the following Acts:
Consumer Protection (Distance Selling) Regulations 2000 (Statutory Instrument 2000 No. 2334) and Financial Service (Distance Marketing) Regulations 2004 (Statutory Instrument 2004 No. 2095). The former states:
‘Payment by card
21. - (2) Subject to paragraph (4), the consumer shall be entitled to be recredited, or to have all sums returned by the card issuer, in the event of fraudulent use of his payment card in connection with a contract to which this regulation applies by another person not acting, or to be treated as acting, as the consumer's agent.
(3) Where paragraphs (1) and (2) apply, in any proceedings if the consumer alleges that any use made of the payment card was not authorised by him it is for the card issuer to prove that the use was so authorised.
(6) For the purposes of this regulation -
"card issuer" means the owner of the card; and
"payment card" includes credit cards, charge cards, debit cards and store cards.’
This law clearly states that when the consumer reports fraudulent use of card details to the bank, the bank - as card issuer - should re-credit the account. In this it specifically refers to frauds perpetrated on debit cards. Similarly, the Financial Service (Distance Marketing) Regulations 2004 (Statutory Instrument 2004 No. 2095) states that:
‘Payment by card
14. - (1) Subject to paragraph (2), where -
(b) fraudulent use is made of that card to make a payment under or in connection with a distance contract to which these Regulations apply, by another person who is neither acting, nor to be treated as acting, as the card-holder's agent, the card-holder may request cancellation of that payment, and is entitled to be recredited with the sum paid, or to have it returned, by the card issuer.
(2) Where paragraph (1) applies and, in any proceedings, the card-holder alleges that any use made of the payment card was not authorised by him, it is for the card issuer to prove that the use was so authorised.
(5) For the purposes of this regulation -
"card issuer" means the owner of the card;
"payment card" includes a credit card, a charge card, a debit card and a store card.’
This wording of this statutory instrument is almost exactly that of the former and again legally enshrines that it is the card-issuer, not the retailer that should re-credit my account in the instance of fraud, since it is too late to cancel a contract with the retailer of which I could not have been aware. This act also specifically refers to refund from the card-issuer in cases of debit card fraud.
Both laws clearly state, therefore, that the only instance the bank have the right not to re-credit my account is if they can prove that it is you that used the card on these occasions, but the onus of proof is upon them. Also, if they make this allegation of fraud by you, but can not prove it to legal standard, you can raise a seperate action for defamation.
