Finding the right bank account Your banking rights

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If you spot a payment on your account that isn't yours, tell your bank

As a banking customer using a current account, you are protected by the Payment Services Regulations and the Banking Conduct of Business Rules from the Financial Services Authority (FSA).

If you feel that your bank has fallen foul of any of these rules, you can complain to your bank and ultimately take your complaint to the Financial Ombudsman Service.

Here we look at some of the most important protections you have under these rules and regulations.

What you should expect from your bank?

There are some general principles that your bank has to abide by in all its dealings with you. Firstly, it has to pay due regard to the interests of its customers and treat them fairly. Secondly, it has to pay due regard to the information needs of its customers and communicate information to them in a way which is clear, fair and not misleading.

There's a payment on my account that I don't recognise

If you spot a payment on your current account that you think is incorrect, or one you didn't authorise, raise it with your bank. 

It's up to your bank to prove that you did authorise the payment. Unless it can prove that the payment was authenticated, accurately recorded, entered into its systems and not affected by technical breakdown or another problem, then it must reimburse you the full amount.

You must notify your bank within a reasonable time period and within 13 months of the debit from your account. 

I've lost my debit card and someone has been using it to make purchases

Up until the point that you notify your bank that your debit card has been lost or stolen, the most you can be liable for is £50. 

And once you notify your bank, you won't be liable for any further amounts. The bank must reimburse you in full for any unauthorised transactions, less the £50.

This doesn't apply if the bank can show that you acted fraudulently. 

Nor does it apply if your bank can show that you intentionally, or through gross negligence, failed to take reasonable steps to keep your PIN safe or failed to comply with obligations your bank sets out in its terms and conditions as to how you should use your card.

I still have my debit card in my possession, but there are transactions on my account I don't recognise

If your debit card details are used without your authority to make purchases, for example if your card details are stolen and used to make purchases online, your bank must reimburse the full amount of the unauthorised transactions, unless you have acted fraudulently.

I asked my bank to make a payment, but it was made to the wrong account

If you gave the wrong account details then the bank is not liable. However, it must make reasonable efforts to recover the money for you, although it can, if specified in its terms and conditions, charge you a fee for doing so.

Can my bank close my account?

It can only do so if it gives you at least 30 days notice – unless there are exceptional circumstances, such as threatening behaviour towards staff.

What rights do I have if my bank is trying to close my branch?

Your bank must give you at least 12 weeks' notice of its plans to close or move your branch, and it should tell you how it will continue to provide banking services.

I'm in financial difficulties. What rights do I have?

Banks must treat cases of financial difficulty sympathetically and positively. In particular, if the bank becomes aware that a customer is heading towards financial difficulties, it should contact the customer to outline its approach and to encourage the customer to contact the bank. 

Banks should also point customers to free, independent money advice.

Banks can use their 'rights of set-off' to take money from one account to pay debts on another. For example, if you have an overdraft on your current account and have a savings account with the same bank, your bank can use those savings to pay down the overdraft.  

But there are rules surrounding the rights of set-off. For example, the bank should not leave you without sufficient income to cover day-to-day living expenses, and funds should only be used to pay non-priority debts once provision has been made for priority debts (such as council tax, utility payments and mortgage repayments).

I've lost track of an old current account. What can I do?

Banks must have arrangements in place to enable their customers to trace and access money held in dormant accounts (where there's been no account activity for 15 years or more). You can get a claim form from your branch.

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