Despite CCTV evidence of frauds stealing £1,000, my bank is dragging its heels over refund

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I used a cash machine on January 18. It said it was empty and a message told me to refer to my bank as the card had been retained.

Then another message said the service engineer had been called and sorry for the inconvenience.

I phoned my bank, RBS, as soon as I could. Unfortunately, my account had already been fleeced of £300.

Tony says: If a cash machine does not work, try to phone your bank while you're standing by it

It later came to light that the card was also used on the same day at a McDonald’s, where someone spent £10.17, and at a Sainsbury’s, where £515.60 and £199.82 was spent in two separate transactions.

I have been proactive in finding out the times of fraudulent transactions, what was purchased, getting confirmation that CCTV was available, and passing it to my bank fraud team, Sussex police and Action Fraud.

Can you encourage my bank to refund this money?

J. H., Crawley.

Tony Hazell, from Money Mail, replies: I’m getting quite concerned at the number of letters reaching me about poor service at RBS. Like many others, your dispute should never have got this far because the bank should have refunded your money immediately and without question.

This is covered in the 2009 Payment Services Regulations. In brief, these say that in the case of suspected cash machine fraud, the bank should refund your money. If the bank intends to withhold the money, it must prove you have been negligent or that no fraud occurred.

RBS has blatantly flouted the rules and caused you unnecessary anxiety. It has now refunded all your money — £1,025.59 in all — and added £100 to apologise. It’s the least it could do.

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By way of excuse, RBS says you took three hours to report the loss and that spending at McDonald’s and that branch of Sainsbury’s were within your normal pattern.

But why should you have phoned more quickly when you believed your card had been retained by the bank? It might help if RBS provided a free number for lost and stolen cards rather than an 0870 one that can cost 40p a minute from a mobile. RBS is the only major bank to have an expensive 0870 number for lost cards.

Others caught in a similar situation should refer their bank or building society to regulations 59, 60 and 61 of the Payment Service Regulations. Regulation 60 says that in the case of disputes, a payment service provider (i.e. your bank) must prove a payment transaction was ‘authenticated, accurately recorded, entered in the payment service provider’s accounts and not affected by a technical breakdown or some other deficiency’.

Regulation 61 says the money must be refunded. I’ve put the full wording of these regulations on our sister website thisismoney.co.uk.

Incidentally, if a cash machine does not work, try to phone your bank while you’re standing by it. Wait at least two or three minutes before walking away. If you have someone with you, get them to alert staff in the bank or shop concerned if it is open.

Save money by noting the numbers they offer for customers calling from abroad and storing them in your phone rather than using rip-off 0870 numbers. RBS’s is 01268 500813.

By the way, RBS thanks you for your patience and says it is pleased to have refunded your money. What a pity its joy didn’t extend to paying your money sooner.