Getting Your Money Back from Unauthorized Withdrawals and Charges

Opening your account statement to find purchases that you do not recognize is an uneasy feeling.  Did I make that purchase and forget it?  Did my spouse?  Identity thieves are betting on you not reading your account statements. If you do not read your account statements on a regular basis, then they might get away with stealing your hard-earned money.

But what do you do if you find a suspicious charge on your bank account or credit card statement?  The steps are a little different depending on whether it is your ATM/debit card or credit card that has been used without your permission or knowledge.

Debit card transactions are covered by the Electronic Fund Transfer Act (EFTA).  With fraudulent debit card purchases, it is critical to act fast when reporting wrongdoing.

• If you lose your debit card and report it before any transactions take place, you will not be responsible for them.
• If you make your report within two business days after you realize your card is missing, you won't be responsible for more than $50 of unauthorized use.
• That amount grows to $500 if you wait more than two days and up to 60 days to make a claim.  At this point, the bank may begin to question if the fraudulent transactions are really yours.
• Claims made over 60 days after the statement with the fraudulent activity is mailed to you are too late – you may be on the hook for the total amount lost.

As long as you contact your bank as soon as you notice the fraud, you losses will be kept to a minimum.

Credit cards are covered by the Fair Credit Billing Act (FCBA).  With an unauthorized credit card purchase, you have 60 days from the day when you receive your credit card statement to make a claim.   The most that you can be penalized is $50. Many credit card issuers will waive this if the result of their investigation finds that your credit card information was stolen.  Credit card issuers have 90 days to investigate your claim. During that time you are not responsible for the illegitimate charge.  You  are responsible for the rest of your credit card balance, though.

If you willingly give your debit PIN, password, or credit card information to someone and they misuse this information, you will be fully responsible for all purchases or charges made.

Following fraudulent use of your debit, ATM, or credit card, it is wise to set up a fraud alert with the three credit reporting agencies – Equifax, Experian and Trans Union.  This will give you peace of mind that fraudulent activity will not spread beyond your current accounts.