DD's bank account cleaned out

[azdisneymom]

This is part rant and part warning. DD is a college student. 2 weeks ago she accidentally lost her debit card at a chain store. When she got home 30 minutes later and realized the card was no longer in her purse she called the bank and reported it. End of story? No! The bank called this week to say her account was overdrawn. Apparently the card was being used all over the US (at the same chain store she lost her card at), California, Colorado and more. Hmmm. The bank said it was her fault because she didn't tell them to deactivate the card. What - it was reported as lost, they should have automatically deactivated it. Now she has absolutely no money, it will take months for the investigation to conclude and the money returned to her. Half my paycheck goes to medical insurance for our family and it is going to hurt to pay her rent. I do it happily but this fraud affects more than her. Because DD is now an 'adult' I cannot step in to complain at the bank.

If you use a debit card please stop. Use a credit card and pay it off at the end of the month. If your credit card has fraudulent activity you can dispute the charges but your bank account isn't wiped out. Your life isn't disrupted and you aren't staying up nights worrying about how to pay the bills, put gas in the car or buy groceries. It is a tough lesson for a college kid.

[faline]

I'm so sorry to hear about this. Pixie dust for a quick resolution for your daughter. :pixie::pixie::pixie:

[CanadianWDWFan]

A couple of years back my debit card was skimmed when I used it at a store. The next day the bank contacted me to tell me that they had frozen my accounts due to suspected fraudulent activities. What I had to do was contact a lawyer and get a sworn statement of Indemnity stating that it was not me that was using the card. This sworn statement cost me less than $100 and was painless. I gave this statement to the bank and my accounts were released and all monies were returned to my account.

She might consider this as her next course of action, especially since she did contact the bank and report the card stolen. Her phone records should prove that she contacted the bank. I believe that the bank should bear some responsibility for them not cancelling her card after her reporting it lost.

Good luck and I hope everything turns out for the best.

[ibelieveindisneymagic]

I am so sorry!

I've had my debit card frozen. It was skimmed and $500 was taken out of the account. The bank noticed it, realized it wasn't possible for me to be in the province where the purchase was made, so they froze the account.

When I tried to use my debit card the next time, the machine gave me a "contact your branch" message and I headed in to get it sorted. It was actually quite quick, they reviewed the transactions, confirmed the onest that weren't mind and I had to sign paperwork confirming that I was telling the truth, but I had a new card that same day and the money was returned before the end of the week.

Did they say why it would take months, that seems rather silly!

[TinkerbellT421]

Oh no! I am so sorry! Hoping for quick resolution for your daughter and yourself! :(

I too had my account frozen but that was with caution by my bank. I used my card before I left for florida the night before actually. Well the next day when we landed in Disney we went to the Hess and used it there. Went through fine. Two hours later my mom received a call at our home stating that my card had fradulent activity and was frozen until they heard from me. So she called me in a panic. When I called the bank to explain that I was in Florida. They actually asked till when so they could notate the account and would release the freeze and that if any further activity AFTER my return date home was found they would automatically decline those purchases and refreeze my account. I was annoyed at the time that I was jumping through hoops on the phone while walking through Magic Kingdom. But then I realized that I was thankfully for my bank being so thorough and automatically protecting me.

[DonaldsBFF]

I would suggest that your daughter file a dispute with the bank for fraudulent activity. Because the card is affiliated with Visa or Mastercard you are not liable for these purchases just like a credit card. They have 10 days to make a provisional credit on the account and most banks will waive the fees due to the circumstances. That is one of the downfalls in having a card tied to the account because in circumstances like this the account is whiped out which can leave you with no money for a couple of weeks but it is still a rare occurence. It sounds like this occurred due to losing her card and someone else using it but most of these cases happen when someone uses their card on the internet at a site that is not well known. For those purchases I would always suggest using a credit card. The card is still the better way to go though because if someone gets ahold of the account number then that is a whole different mess and a lot more work to remedy. At least with the card it can be closed and you can get a new number fairly easily.

[DVC2004]

She needs to file a dispute and possibly a police report too. Then the bank should have to give her "provisional credit" which means refund her losses during the time the investigation is going on. Generally this is given back within 24 hours of filing the dispute at the bank. She will need to sign an affidavit, it's very common and easy. The bank should know how to do all this. She called them as soon as she found out, what else could shae have done? Call the bank and ask to speak with a manager if they are giving you a hard time. These cards are protected against fraud/loss just as a credit card is.

[sassafras]

She definitely needs to file a police report right now. Don't delay. As a person who issued ATM/Debit cards for years, it upsets me that the person in charge of those for that bank didn't insist the card be closed immediately. :mad: That would have been the appropriate way to address this matter. Also there are avenues to go thru. She should be able to have them file affidavits or fraud reports (along with copies of the police reports) stating this was unauthorized activity, not done by her, and recoup most of that money. It shouldn't take months, a matter of 2-3 weeks tops. Personally, I would take the whole matter up with the bank management and bring the way it's being handled to their attention. Hopefully, you will be able to get this straightened out!

[brownie]

This information from the FTC should help:


Credit Card Loss or Fraudulent Charges (FCBA). Your maximum liability under federal law for unauthorized use of your credit card is $50. If you report the loss before your credit cards are used, the FCBA says the card issuer cannot hold you responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card. Also, if the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.

After the loss, review your billing statements carefully. If they show any unauthorized charges, it's best to send a letter to the card issuer describing each questionable charge. Again, tell the card issuer the date your card was lost or stolen, or when you first noticed unauthorized charges, and when you first reported the problem to them. Be sure to send the letter to the address provided for billing errors. Do not send it with a payment or to the address where you send your payments unless you are directed to do so.

ATM or Debit Card Loss or Fraudulent Transfers (EFTA). Your liability under federal law for unauthorized use of your ATM or debit card depends on how quickly you report the loss. If you report an ATM or debit card missing before it's used without your permission, the EFTA says the card issuer cannot hold you responsible for any unauthorized transfers. If unauthorized use occurs before you report it, your liability under federal law depends on how quickly you report the loss.

For example, if you report the loss within two business days after you realize your card is missing, you will not be responsible for more than $50 for unauthorized use. However, if you don't report the loss within two business days after you discover the loss, you could lose up to $500 because of an unauthorized transfer. You also risk unlimited loss if you fail to report an unauthorized transfer within 60 days after your bank statement containing unauthorized use is mailed to you. That means you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts. However, for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.

If unauthorized transfers show up on your bank statement, report them to the card issuer as quickly as possible. Once you've reported the loss of your ATM or debit card, you cannot be held liable for additional unauthorized transfers that occur after that time.

azdisneymom, you are correct that it is better to use a credit card. You're not fighting to get your money back if there's fraudulent activity. If your daughter reported lost before it was used, they can't hold her liable for any of the losses. It if was used before she reported it lost, she's probably on the hook for $50-500. I would check out the FTC website for additional help and resources.

[Dixie Springs]

Grrrrr!, and sorry for you. I concur with the credit card advantage. Debit cards are too easy for bottom-feeder thieves to use. DW has one that she uses for a local warehouse club store, and it worries me.

[disneyfan328]

I too was a victim of someone getting ahold of my debit card number. I assume it was "skimmed" but I am not sure exactly. I had NO idea that it was being used until I went to use my card and it was denied. When I contacted the bank to find out why they told me that my card had been cancelled. when I asked why because I hadn't cancelled it they told me they would have to contact corporate. It turned out that their fraud dept had caught it as my account was charged 1500 in about a 24 hour period from some company in London.

All I had to do was go into the bank, sign an affidavit that I didn't make the charges and the money was returned to my account within 7-10 business days. Fraud is Fraud regardless of whether or not she reported the loss so she need to go into the bank and talk to the manager and get this all straightened out. I didn't have to pay a dime for the affidavit and all of the money was returned.

what bank is this through?

[vicster]

What on earth is wrong with this world? I would never use someone's card if I found it. So sad that we have things that make life more convenient (debit cards) and we can't use them because of dishonest people.

[Lizzy]

My card was skimmed at I assume was a gas station. Someone tried to get gas in INDIA with it. My bank denied the transaction and called me. Once I returned their call and verified that I was not in India, they shut down my card and issued me a new one.

My bank caught all that, not me.

When she reported it lost to her bank they should have shut it down immediatly. That is horrible that they are putting it on her, though it doesn't suprise me. I'm so sorry this happened and I hope it all works out

[azdisneymom]

Thank you all. DD did file a dispute with her bank and a police report. She was told by the bank that it would take 7 - 10 business days for the investigation. If they determine the charges were not hers then they would return the funds. However it could take longer if they need to do more investigation.

I will forward the info from the FTC. I just feel helpless because I can't do anything other than help pay her bills. She is over 18 and I was not a signer on the account. :sad:

[VWL Mom]

I'm so sorry this happened. My son had his stolen in August and within 10 minutes they tried to charge $1750 at Target with his AX and then his debit card. Since he is a college student both accounts are set up for no more than $200 at a time so both shut down.

Depending on what bills she has she may want to call them and explain the circumstances. If her accounts are in good standing some of the utilities, major cc, etc will ask her to fax the police report and will grant her an extension for a couple of weeks. Good luck.

[White Rose]

Wow, I can't believe the bank didn't automatically block the card! When someone calls the credit union where I work (I work in their call center) and tells us they lost their debit card, the first thing we do is block the card and then go over their last few transactions to make sure no fraud occurred on the card. Heck, we even have a "temporary block" we can place on a debit card if someone has lost it and wants to try to find it before putting the permanent block on the card. Then, the person can call us back if they DO find the card, we can remove the temporary block. If not, of course, it at least prevents the card from being used while it is lost!

I am SO sorry this happened to your daughter. As someone who works in the finance industry, I am completely appalled!

[SBETigg]

Wow, I can't believe the bank didn't automatically block the card! When someone calls the credit union where I work (I work in their call center) and tells us they lost their debit card, the first thing we do is block the card and then go over their last few transactions to make sure no fraud occurred on the card. Heck, we even have a "temporary block" we can place on a debit card if someone has lost it and wants to try to find it before putting the permanent block on the card. Then, the person can call us back if they DO find the card, we can remove the temporary block. If not, of course, it at least prevents the card from being used while it is lost!

I am SO sorry this happened to your daughter. As someone who works in the finance industry, I am completely appalled!

I was thinking the same thing. I would change banks immediately. This lack of response is appalling. My bank once suspected fraud because I was spending in Massachusetts and Connecticut on the same day (which happens all the time- they're right next to each other). But they're vigilant on my behalf, and I like that. Your bank really dropped the ball here and I would expect better customer service on their part.

So frustrating that you can't do anything about it, too. I have an 18 year old and a 20 year old, and I hate when I can't advocate on their behalf anymore because they are legal adults. It's natural, and good for them, but it's also hard to be mom and want to help, and be powerless. I would suggest to your daughter that she has you listed on her account as a safety backup, so that you do have some pull. My kids both list me or my husband as secondary on their accounts. It just makes sense in case something happens.

[PAYROLL PRINCESS]

I don't have any advice, I just wanted to say sorry for all the financial troubles. And I too would change banks ASAP. Their lack of response is inexcusable. I bank with a credit union and find the service is better than a "big" bank.
I hope it gets resolved quickly.