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Credit Card Fraud

Your rights and entitlement to compensation

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Credit Card fraud is not so much of a problem as long as you keep your card safe.

However, there's still plenty of fraud about and this page explains what are your rights should your card be stolen or used without your permission.

Stolen or lost credit card

As long as you haven't acted fraudulently or without reasonable care, section 12.12 of the UK banking code states -

If someone else uses your card, before you tell your credit card company it has been lost or stolen or that someone else knows your PIN, the most you will have to pay is £50
If the card is still in your possession
A fraud can still occur even when you still have your card and PIN. Perhaps for example somebody uses your card number to order goods online and has them sent to a different address. In such a case you might not realise there's been a problem until your monthly statement arrives.

The Banking Code in such a situation is even more protective as it states -

  • If someone else uses your card details without your permission, and your card has not been lost or stolen, you will not have to pay anything
  • If someone else uses your card details without your permission for a transaction where the cardholder does not need to be present, you will not have to pay anything
Why it's important to know your rights
If you suffer from fraud don't put it past your credit card company to try to wiggle out of its responsibilities and duties under the Banking Code.

But as long as you know your rights and argue forcibly there's little the company can do unless it can prove that you either acted fraudulently or without reasonable care.

If you continue to have a problem I would make a formal complaint to the Financial Ombudsman.

The dark side to Credit Cards is their generally high interest rates and ease of use meaning that unless you're financially disciplined it's not hard to rack up a large negative balance.

But the good news is that they offer excellent fraud protection which is backed up by UK law. It is for this reason that I'm a big fan of them, especially when using them to buy goods and services online - see why not get a second card with a reduced balance just for online shopping.

See also

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    How to Audit your Credit File

    With errors your rating will suffer
    How a clean credit rating can save you money
    4 steps to a clean up any mistakes
    Don't discount the importance of your credit file
    It's absolutely critical.....
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