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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9602
Experience:  I have been practising for 30 years.
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What is uk bank liability for fraud on my account. Signed up

Customer Question

What is uk bank liability for fraud on my account.
Signed up for Internet banking and signed usual indemnity form.
Fraudster gave instructions to bank purporting to be me with my signature on letter to pay third party.
I did not authorise any such payment.
My bank not prepared to refund unauthorised payment made by bank from my account.
They say have signed indemnity and all boxes ticked regarding payment so no refund.
What is the legal position vis a vis contractual provision as stated above (indemnity)
I feel bank is not accepting responsibility for unauthorised payment.
Would appreciate your advising onwhat basis can demand refund and any relevant bank regulations can rely onto seek refund.
Kind regards
Farid Patel
Submitted: 1 year ago.
Category: Law
Expert:  Nicola-mod replied 1 year ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
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Nicola
Customer: replied 1 year ago.
Hi Nicola,
Please continue your search and revertRegards *****
Expert:  Nicola-mod replied 1 year ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  Nicola-mod replied 1 year ago.
Hello,
I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?
Thank you for your patience,
Nicola
Customer: replied 1 year ago.
Hi NicolaPlease continue to search.Regards
Farid
Expert:  F E Smith replied 1 year ago.

How much was taken from the account?

Do you know who the fraudster is or do you suspect who it is?

Even though this payment was not authorised by you, do the bank not believe that and that’s why they are not refunding?

Customer: replied 1 year ago.
Dear Mr. Smith,The amount was £15,000.I have no idea who was the fraudster.The bank I believe accepts that the fact that there was a fraud committed by a fraudster.They feel that the signed indemnity referred to in my first email absolves them from liability for the reasons stated.Regards,
Farid
Expert:  F E Smith replied 1 year ago.

What was in the wording of the indemnity form which they are trying to rely on?

They can’t get you to sign something which says “we’re not responsible for any fraud on the account, you have to take that on the chin” if the money has gone as a result of one of their failings. The clause would be not enforceable under the Unfair Contract Terms Act firstly because it strikes to the very heart of the agreement between you in my opinion and secondly because it doesn’t pass the UCTA test of reasonableness.

It is an attempt to limit liability for negligence and therefore has to pass the UCTA test.

I would need to see the wording of that clause which they are quoting, to comment further.

Can I clarify anything for you?

Please rate the service positive. It is an important part of the process by which experts get paid.

We can still exchange emails.

Best wishes.

FES