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Card fraud insurance

Bank of Ireland, MBNA and Ulster Bank were selling optional insurance to protect credit card holders against the risk of fraud or loss of the card. These policies offered protection for unauthorised transactions on the card, while other features included a facility to cancel lost or stolen cards and order replacements in one phone call, and the replacement of a lost handbag or wallet up to €200.

 

However, it later came to light that this protection was mis-sold. Those who purchased the insurance were not told that the credit card provider was in any case responsible for any fraudulent transactions carried out after the consumer informs them that the card has been lost or stolen. Even if fraudulent transactions happened before the consumer realised the card had been stolen, bank customers would often only be liable for a small amount, up to the first €30 put on the card.