Thread: Interest on fraudulent transactions?

Sorry if this has been asked a hundred times before but if it has then I was obviously searching for the wrong keywords!

My experience over the last 30 years is that when a fraudulent transaction is reported to a credit card company the amount is usually removed from the account pending investigation so that no interest will accrue.

One of my credit cards is taking a more, shall we say, ‘lax’ approach in that a fraudulent transaction still appears on the account 3 weeks after I reported it and, presumably, if I don’t pay it off in the next few days will start charging me interest on it. I understand from the Banking Code that (10.3) “If we confirm a transaction is unauthorised, we will refund any interest charged”.

But does this mean that my card company is entitled to let the transaction sit there accruing interest while it takes its sweet time determining if the transaction was fraudulent in the eyes of its “experts”? I’m sure we have real experts in this Forum who can point me toward the relevant line in the right legal document that sets out the obligations of the card company.

George

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You are right, interest will be charged but will then have to be refunded.