Questions of cash: A fraudster spent a small fortune on my debit card
Saturday 06 April 2002
I signed up with Cahoot's savings account because of its good interest rate and because it has a debit card. In February I was phoned by the bank because of the high number of unusual transactions on the card, but I have only used it once. It turns out that my card was cloned and used fraudulently in France. I had £68,500 in the account, but when I checked it was down to £38,000 and a few days later payments were still being processed by the bank, taking the balance down to £14,000. Now I find that my balance is £3,500 overdrawn! Why couldn't the bank have refused to carry out transactions after they learnt the card had been cloned? I have written and phoned Cahoot several times, but I have not had the courtesy of a response. PS, Hampshire.
Q I signed up with Cahoot's savings account because of its good interest rate and because it has a debit card. In February I was phoned by the bank because of the high number of unusual transactions on the card, but I have only used it once. It turns out that my card was cloned and used fraudulently in France. I had £68,500 in the account, but when I checked it was down to £38,000 and a few days later payments were still being processed by the bank, taking the balance down to £14,000. Now I find that my balance is £3,500 overdrawn! Why couldn't the bank have refused to carry out transactions after they learnt the card had been cloned? I have written and phoned Cahoot several times, but I have not had the courtesy of a response. PS, Hampshire.
A Cahoot suggests your criticism is unfair, though it is sorry you suffered the fraud. It points out that it was proactive in spotting and ending the fraudulent use of your card. Cahoot froze your account, but is obliged by Visa rules to honour transactions already in the pipeline. The bank says that since your letter to us it has fully reimbursed you with the stolen funds, plus interest. While this would not help you, Cahoot is encouraging customers to use its recently launched web card for online transactions, which it claims will "virtually eliminate" internet fraud.
Q I am following with interest the debate in Your Money's Questions of Cash column (16 and 23 March) regarding tax-free gifts. Please could you say whether the recipients of cash gifts that are worth above £3,000 annually are required to declare them to the Inland Revenue? Where a gift is not tax-free [because the donor dies within seven years of a gift over £3,000] what amount of tax does the recipient pay? SC, Kent.
A Ruth McCarthy, tax adviser with the accountant Bentley Jennison, says that there is no need initially for the recipient to notify the Inland Revenue. If the donor dies within seven years, the recipient will become liable to pay the inheritance tax due on the gift. She adds that often donors will plan for this by either providing an additional legacy in the will to cover the tax due, or by taking out a life insurance policy that will meet the cost. In the last financial year, inheritance tax was payable at the rate of 40 per cent where an estate has a total value that exceeds £242,000. The threshold for the current financial year will be announced by the Chancellor of the Exchequer in the Budget on 17 April.
Q I am selling my home and will make about £30,000 net profit. I do not intend immediately to buy another property, but want to put the proceeds into a high-interest account or fund or scheme to give me the most income over a six-month period. I have been given different opinions on whether I will have to pay Capital Gains Tax (CGT) on the profit that I raise from the sale of the property. Can you advise? SS, London
A Matthew Carden, the technical director of Inter-Alliance, the independent financial advisers, says "With the short time that you have to invest, it is probably best to look for a bank account that pays high monthly interest so that you do not have to suffer a penalty for short notice withdrawal. Abbey National's internet-only eSaver Account offers 4.17 per cent for the initial six months, with no notice period. Standard Life pays 4.05 per cent with 50 days' notice and Teachers' Minster 60 account offers 4.07 per cent with a 60-day period for deposits for £20,000 to £40,000. Your Capital Gains Tax liability will depend on whether the property is your main residence. If it is and has been your main residence throughout the period of your occupancy, there is no CGT to pay. If the house was previously your main residence, and you sell within three years of moving out of it, there is no CGT payable. If, on the other hand, you sell the property more than three years after moving out, then CGT is payable on all time periods, except the periods of residence and, of course, the last three years of ownership."
If you have any questions about personal finance topics or problems, please write to Questions of Cash, 'The Independent', 191 Marsh Wall, London E14 9RS, or e-mail firstname.lastname@example.org. We regret that we can reply only to letters published here. Please send copies, not originals, as we cannot undertake to return material.
Questions Of Cash: 'Your bank card may have been cloned'
Bargain Hunter: BT improves its mobile reception with 'incredibly competitive' deals
Mark Dampier: What price equities when cost cutting does nothing for profits?
Questions of Cash: Why was my case ignored by My Civil Service Pension?
Offset your mortgage and save thousands
- 1 Astrological signs are almost all wrong, as movement of moon and sun throws out zodiac
- 2 Dad eats daughter's weed brownies, thinks he's had a stroke
- 3 The West has it totally wrong on Lee Kuan Yew
- 4 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...
Day In a Page
A four-bedroom apartment on the ground floor of a stunning period property in North Yorkshire, with two kitchens and a large south-west facing garden.
This high-spec two-bedroom home is part of a smart collection of new flats at Beaufort Park and has a large decked balcony that's perfect for summer drinks.
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Overlooking a golf course, this six-bedroom Edwardian detached home spans four storeys and retains many period features including the original, operational servants' bells...
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
In a Grade II-listed manor just outside of Bath, this three-bedroom home is arranged on two floors with a skylight in a vaulted roof line.
Open the living room's bi-fold wooden doors to reveal a retro-style kitchen, and a conservatory leading to a paved garden at this three-bedroom home.
A Grade II-listed, four-bedroom home, in a charming Somerset village, with a two-storey studio that could be converted into a holiday cottage
A modern four-bedroom Victorian home, within walking distance to the high street
A luxury apartment in the Gothic mansion of Wyfold Court in Kingwood, offers six bedrooms spread over three floors and a turret
This school conversion, near Stockwell Tube, oozes New York loft style. The one-bedroom flat features double height ceilings and exposed brick work
This six-bedroom Georgian home is on three floors with open fireplaces, a two-oven Aga, an annexe, and cottage gardens with outbuildings and a car barn
High Crest House covers an impressive 9384sq ft, with almost three acres of grounds including a tennis court and summer house enclosed by electric gates
A six-bedroom farmhouse with separate accommodation in converted stables. Situated in the village of Church Aston, within walking distance to the market town
A two-bedroom flat with under-heated walnut floors and bespoke built-in storage. The Tube and Clapham Common are a short stroll away
A refurbished seven-bedroom townhouse with staff quarters, cinema room, superb gym, steam room and plunge pool
A minimnalist four-bedroom home designed to the highest spec, featuring glass walls and a kitchen space lit by a glass roof
Hibernate during winter and make your living during the summer at this busy guesthouse with panoramic sea views, in the village of Lynton
A four-bedroom penthouse next to the Tate with direct views of St Paul's from two floors of luxurious living space
A four-bedroom detached home surrounded by spacious gardens and woodland, close to New Pudsey
An 18th-century, three-bedroom home near Langstone Harbour built from ships beams with vaulted ceilings and wood burning stoves
A five-bedroom semi-detached home with a mix of period and modern features in a popular and convenient location
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
A boutique mews house, set around a central courtyard, with three bedrooms and a private roof terrace
A four-bedroom farm-conversion with three bathrooms and two reception rooms
A two-bedroom detached house with ensuite bathrooms and a sun-drenched decked terrace, £750,000
A modern and spacious two-bedroom, penthouse flat with two bathrooms in a prestigious development
A beautifully renovated five-bedroom terrace with three reception rooms and a courtyard garden, £700,000
A four-bedroom period house which has been extended to provide almost 2,500sq ft of living space, £675,000
A pretty three-bedroom Georgian home with a 22ft drawing room and a master suite with a balcony, £525,000
A substanstial family home with five bedrooms and landscaped gardens in the much sought-after Branksome Park area
A well-presented three-bedroom house with front and rear gardens, close to White City station, £475,000
A handsome five-bedroom house in a sought-after location close to the city centre
A five-bedroom country home with valley views, equestrian stables and 27 acres of land, £725,000
A six-bedroom farm house with separate, detached cottages and 371 acres of land
A two-bedroom cottage with parquet floors, chunky beams and an open fireplace
A three-bedrrom flat with 2,733sq feet of living space, a beautiful private garden and 15 acres of communal grounds
A four-bedroom chalet bungalow with three bathrooms and a spacious garden, £525,000
A two-bedroom flat with an open plan kitchen and two balconies, close to Arsenal station