Banks are refusing to refund customers whose cheques are stolen and cashed by fraudsters.
In one case, Nationwide refused for two years to refund a fraud victim £28,000 after her stolen cheque was paid into an account at the building society.
The culprit had intercepted the cheque and then set up a bank account with Nationwide in the woman’s name using a fake driving licence.
Nationwide refused for two years to refund a fraud victim £28,000 after her stolen cheque was paid into an account at the building society
By the time the fraud came to light, the money was long gone and the building society refused to refund it.
It claimed that, according to an obscure law called the Cheques Act 1957, banks do not have to repay a cheque paid in by a fraudster if it is accepted in ‘good faith and without negligence’.
However, in March, the Ombudsman ruled that Nationwide was negligent in not carrying out more checks when the fraudster opened the account.
It ordered the building society to repay the money, plus £295 compensation.
A Nationwide spokesman says: ‘The Society followed the correct process for ID checking and credit referencing when opening the account in this case and doesn’t believe it acted negligently.
But we accept the decision of the Ombudsman and refunded the customers with interest.’