In London, this week, a trial is being held over a dispute between the Justice for Subpostmasters Alliance (JFSA) and the Post Office, but the result will have far-reaching repercussions for anyone disputing computer evidence. The trial currently focuses on whether the legal agreements and processes set up by the Post Office are a fair basis for managing its relationship with the subpostmasters who operate branches on its behalf. Later, the court will assess whether the fact that the Post Office computer system – Horizon – indicates that a subpostmaster is in debt to the Post Office is sufficient evidence for the subpostmaster to be indeed liable to repay the debt, even when the subpostmaster claims the accounts are incorrect due to computer error or fraud.
Disputes over Horizon have led to subpostmasters being bankrupted, losing their homes, or even being jailed but these cases also echo the broader issues at the heart of the many phantom withdrawals disputes I see between a bank and its customers. Customers claim that money was taken from their accounts without their permission. The bank claims that their computer system shows that either the customer authorised the withdrawal or was grossly negligent and so the customer is liable. The customer may also claim that the bank’s handling of the dispute is poor and the contract with the bank protects the bank’s interests more than that of the customer so is an unfair basis for managing disputes.
There are several lessons the Post Office trial will have for the victims of phantom withdrawals, particularly for cases of push payment fraud, but in this post, I’m going to explore why these issues are being dealt with first in a trial initiated by subpostmasters and not by the (far more numerous) bank customers. In later posts, I’ll look more into the specific details that are being disclosed as a result of this trial.