Customer's negligence not a defense

A Polish bank, PKO BP, claimed that a customer who lost about 700 euros during an online transaction was responsible for the loss due to serious negligence. The customer had been directed to a fake website to get her login details, but she had to sue the bank to get her money back.

Court rules on refund timing

The Court of Justice of the European Union (CJUE) ruled in October 2026 that serious negligence by a customer does not prevent a service provider from immediately refunding an unauthorized transaction. The court emphasized that the refund must happen immediately, at the latest by the end of the first business day after the bank becomes aware of the unauthorized transaction.

Negligence not a reason for delay

The CJUE rejected the idea that the refund period could be delayed because of the customer’s negligence. It distinguished between the initial refund and the later determination of who is ultimately responsible for the loss. The bank can still try to claim money back from the customer later if it can prove its own liability.

Banks must justify delays

French law allows banks to delay refunds if they have good reasons to suspect fraud, but they must write to the Bank of France to explain these reasons. The court stressed that just saying a customer was negligent does not prove fraud, and banks must provide clear justification and written communication.

Burden of proof not on customers

The ruling clarified that the burden of proof cannot be simply showing a screenshot and asking the customer to explain how the fraud happened. The circumstances of the fraud must be discussed, but this should not be the only reason for delaying a refund.

Financial penalties for delays

French law imposes financial penalties for delayed refunds, including higher interest rates. For example, a 20,000 euro principal would incur an additional 3,000 euros in interest over a year if the delay reaches thirty days. The exact amount depends on the length of the delay and the refunds made.

Victims can seek advance payment

The court noted that even if a customer was negligent, they can still ask the court for an advance payment from the Tribunal. This means the bank might have to lend the money that the customer lost, even if the refund is delayed for up to 24 months.