Find out more about claiming a refund, why a refund might be refused, and what to do if you’ve been tricked into making a payment to a scam account.
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Tell your bank as soon as you notice an unauthorised payment and ask them for a refund. Make sure you get in touch with your bank within 13 months from the date of the payment. Otherwise, you may not be able to make a claim.
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Your bank may ask you some questions and get you to fill out a form stating what happened. But this shouldn’t delay your refund.
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The refund should be in your account by the end of the next business day. You should also be refunded any charges and interest you paid (or credit interest you have lost) because of the payment.
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If your card was lost or stolen and you do not report it, you may have to pay up to £35 of the unauthorised transaction(s). If it was not possible for you to detect the loss or theft of the card, or if your bank was at fault, you will not have to pay.
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If the bank refuses to refund the payment and you disagree with the decision, you can complain. Find out how to complain[2].
When banks can refuse to refund you
In an unauthorised payment claim, your bank can only refuse to refund you if:
- You authorised the payment, or
- You acted fraudulently, or
- You failed to protect the details of your card, PIN or password in a way that allowed the payment.
If you authorised the payment, but now suspect you’ve sent money to a scammer, read our information below on fraudulent payments you have authorised[3].
Credit card payments and overdrawn accounts
If the unauthorised payment was made on a credit card, or from an overdrawn account, your bank can only refuse a refund if:
- You, or someone acting on your behalf, authorised the payment, or
- The person who used your payment card (including virtual cards) had it with your consent.
The use of your password, card or PIN might not on their own be proof that you authorised a payment.
Deliberately making a false claim for a refund is fraud. Your bank could report it to the police.
No matter which rules apply, if you think you’ve been scammed – and you’re unhappy with how your bank or payment service provider handled things – the Financial Ombudsman Service[7] may be able to help.
The Serious Fraud Office has published a page listing organisations[13] who offer support and advice for those affected by fraud and scams.
When banks can claim your money
Your bank may be able to claim money from one of your accounts to pay a debt you have in another account. This is known as the right to set-off. This might happen if you miss a loan or credit card payment, and you have funds in another account with the same bank. If you can see an amount debited from your account by your bank, this might be why.
If your bank wants to take money from your account to pay a debt, we expect them to:
- Tell you about the right to set-off at least 14 days before it intends to take the money.
- Estimate how much money you need for your priority debts and essential living expenses like your mortgage, rent and food bills.
- Refund you, in most cases, if the bank realises that you needed to use the money for priority debts or essential living expenses.
- Not take money that’s intended for specific purposes, such as money given to you by the NHS for healthcare, or if a third party is entitled to the money, for example because you are a trustee holding the money for someone else.
- Tell you quickly when the right to set-off has been used on your account.
The right to claim money from your account to pay a debt should also be clearly explained in your account’s terms and conditions.
