Sharee* complained that 35 unauthorised transactions were made with her credit card in NZ during the month she was overseas. Sharee said she’d cut up the card before she went overseas, but later said she cut it up after she returned home. The police confirmed Sharee had been overseas during the fraudulent transactions, but couldn’t investigate further as there was no CCTV footage.
The lender investigated and found that 32 of the 35 transactions were made with the card using the PIN number or contactless PayWave payments. The remaining 3 transactions were made online, using the CVV number located on the back of the card. The lender said Sharee was liable for the transactions. The conditions of use for the credit card stated Sharee would be liable for if she failed to safeguard the card, disclosed the PIN number, or allowed someone else to use the card, or if she selected an unsuitable PIN number.
The card had been used in New Zealand while Sharee was overseas by someone with access to Sharee’s house. It seemed likely that Sharee either selected an unsuitable PIN, or the person who made the transactions was able to guess. As this was a breach of the conditions of use, Sharee was liable for the unauthorised transactions. The lender agreed to reverse all interest charges for the unauthorised transactions and make the remaining balance on the card interest free for a further 6 months.
Complaint not upheld.
*Names have been changed.