Our investigation

Under the Code of Banking Practice, banks must compensate customers for fraudulent and unauthorised transactions on their card unless customers have breached the terms and conditions of their card or failed to take reasonable steps to protect their banking details, such as their PIN.

The card’s terms and conditions did not prohibit the use of the same PIN for different cards (something many banks do, in fact, prohibit). We concluded Marcel did not breach the card’s terms and conditions on that score.

We did not agree with the bank that Marcel had breached the card’s terms and conditions by “disclosing” his PIN. Marcel was observed entering his PIN without his knowledge. This did not amount to disclosure. Instead, the bank should have considered whether Marcel had taken reasonable care to prevent anyone observing him when he was entering his PIN.

In our view, the available information indicated he had taken reasonable care when entering his PIN.

Outcome

The bank offered to reimburse Marcel for all unauthorised transactions, plus all interest that had accrued on the debt. He accepted the offer.