Questions of cash: A fraudster spent a small fortune on my debit card

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.

Money net

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 cash@independent.co.uk. We regret that we can reply only to letters published here. Please send copies, not originals, as we cannot undertake to return material.

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

News
Alan Bennett has criticised the “repellent” reality shows which dominate our screens
tvBut he does like Stewart Lee
Life and Style
The Google Doodle celebrating the start of the first day of autumn, 2014.
tech
Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
Sport
David Moyes and Louis van Gaal
football
PROMOTED VIDEO
News
i100
Life and Style
Vote with your wallet: the app can help shoppers feel more informed about items on sale
lifeNew app reveals political leanings of food companies
News
Former Governor of Alaska Sarah Palin, left, with her daughter, Bristol
newsShe's 'proud' of eldest daughter, who 'punched host in the face'
Sport
New Zealand fly-half Aaron Cruden pictured in The Zookeeper's Son on a late-night drinking session
rugby
Arts and Entertainment
Salmond told a Scottish television chat show in 2001that he would also sit in front of a mirror and say things like,
tvCelebrity Trekkies from Alex Salmond to Barack Obama
Life and Style
Carol O'Brien, whose son Rob suffered many years of depression
healthOne mother's story of how London charity Maytree helped her son with his depression
Arts and Entertainment
The cover of Dark Side of the Moon
musicCan 'The Endless River' carry on the tradition? See for yourself
Life and Style
food + drink
News
Rob Merrick's Lobby Journalists were playing Ed Balls' Labour Party MPs. The match is an annual event which takes place ahead of the opening of the party conference
newsRob Merrick insistes 'Ed will be hurting much more than me'
News
A cabin crew member photographed the devastation after one flight
news
Voices
A new app has been launched that enables people to have a cuddle from a stranger
voicesMaybe the new app will make it more normal to reach out to strangers
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Trainee / Experienced Recruitment Consultants

    £20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

    Trainee Recruitment Consultant - Soho

    £20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

    Trainee Recruitment Consultants - Banking & Finance

    £20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

    Quantitative Risk Manager

    Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

    Day In a Page

    Secret politics of the weekly shop

    The politics of the weekly shop

    New app reveals political leanings of food companies
    Beam me up, Scottie!

    Beam me up, Scottie!

    Celebrity Trekkies from Alex Salmond to Barack Obama
    Beware Wet Paint: The ICA's latest ambitious exhibition

    Beware Wet Paint

    The ICA's latest ambitious exhibition
    Pink Floyd have produced some of rock's greatest ever album covers

    Pink Floyd have produced some of rock's greatest ever album covers

    Can 'The Endless River' carry on the tradition?
    Sanctuary for the suicidal

    Sanctuary for the suicidal

    One mother's story of how London charity Maytree helped her son with his depression
    A roller-coaster tale from the 'voice of a generation'

    Not That Kind of Girl:

    A roller-coaster tale from 'voice of a generation' Lena Dunham
    London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

    London is not bedlam or a cradle of vice

    In fact it, as much as anywhere, deserves independence
    Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

    Vivienne Westwood 'didn’t want' relationship with McLaren

    Designer 'felt pressured' into going out with Sex Pistols manager
    Jourdan Dunn: Model mother

    Model mother

    Jordan Dunn became one of the best-paid models in the world
    Apple still coolest brand – despite U2 PR disaster

    Apple still the coolest brand

    Despite PR disaster of free U2 album
    Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

    Despite the result, this is the end of the status quo

    Boyd Tonkin on the fall-out from the Scottish referendum
    Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

    Manolo Blahnik: Flats, Englishness, and Mary Beard

    The shoe designer who has been dubbed 'the patron saint of the stiletto'
    The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

    Scrambled eggs and LSD

    Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
    'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

    'Normcore': Blending in is the new standing out

    Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
    Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

    New leading ladies of dance fight back

    How female vocalists are now writing their own hits