Money Grouse: The strange case of the mysterious missing PIN

WHEN she mislaid her wallet in the small Norfolk town where she lives, Lindsay Blackmore did not suspect that it had been stolen.

'People don't steal things in Harleston,' she said. 'It's such an honest little place.' She believed that she must have left it in the baker's, but since the shops were then shut she had to wait until the next day to check.

But someone had taken her wallet and had already used her Barclaycard and Midland credit cards. By the time she reported the cards missing - about 24 hours later - pounds 700 worth of purchases and cash withdrawals had been made. No cash withdrawals had been made on the Midland card, which had been used to buy goods worth about pounds 400. Midland, which is her business but not her private bank, reimbursed her pounds 350.

Under the banking code of practice it was entitled to set off pounds 50 against fraudulent transactions made before notification of the card's disappearance.

It is with Barclays - her personal bank of 21 years - that Ms Blackmore has not seen eye to eye. Two cash withdrawals had been made on her Barclaycard - pounds 200 from a Lloyds cash dispenser, and pounds 130 from a Barclays machine. She has not been asked to pay for the Lloyds withdrawal, but six months after the event Barclays has asked her to settle the pounds 130 withdrawal made though the Barclays cash dispenser.

It is adamant that she must somehow have revealed her PIN number to the thief. 'It isn't possible to make a withdrawal without a card and the PIN,' a Barclays spokeswoman said.

But Ms Blackmore insists she did not reveal her PIN number to anyone. She has used the same number for five years, and has never written it down. She said: 'If Midland and Lloyds believed me, I don't see why my own bank doesn't believe me.'

The only other explanations she can think of are that the thief found out her PIN number by looking over her shoulder when she was making a withdrawal or that the transaction was a 'phantom withdrawal'.

Over the past few weeks a growing number of credit card holders have begun attracting publicity about mysterious withdrawals from cash dispensing machines.

If this is a phantom withdrawal, Ms Blackmore is relatively fortunate. One credit card holder is said to have lost pounds 9,000 this way. About 300 card holders are expected to take part in a court case to challenge the banks and building societies over the phantom withdrawals, according to the solicitor leading the action, Denis Whalley of J Keith Park in St Helens. About pounds 1m is at stake.

Mr Whalley believes the banks will fight his action to the end in order to refute his argument that the withdrawals are a result of dishonesty within the bank.

Ms Blackmore is not sure what to do. She does not want to cause a huge fuss over pounds 130. But she does not like the implication that her bank of 21 years refuses to take her word. Barclays says that it will continue to look at the whole case.

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