Check Fraud & Bank Does Nothing

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jlatriece28

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I have an account through Chase Bank and I recently lost my debit card. Someone found my debit card and then somehow figured out the pin number. From there they deposted a fraudulant check in the amount of $3,800.00 into an ATM. The bank cleared the funds within 24 hours and the person then took an ATM withdrawal of $400.00 and made a purchase of $2,401.38 at Wal-mart. Once the pirchase at Wal-mart was done I had gotten an alert of the strange activity. I then called the bank to dispute the transactions and reported my card lost. They then told me that they were going to do an investigation and the card was going to be cut off. From there my account had a freeze on it.

I had then been calling the bank everyday at least 1-2 times to get the status of my claim. I was being told that it was still pending, this went on for 1 week. I then got a call from a man at the bank and he asked if I knew the person on the check and I informed him that I did not. I called the bank again and was told that my claim had been denied and that I needed to get a police report to dispute the charges on my account. For 1 week I had been talking to them and they never told me that I needed to get a police report to dispute teh charges on my account. During this 1 week of calling, I have been hung up and denied correct information.

I got the report and was then told that there was nothing they can do with the report and I would need to have to police to do a full investigation before my account can be cleared. I spoke with the police and was informed (which I knew) there is nothing they can do because they do not have the resources and they are then liable for what happened because if the card was reported lost they should have cut it off then.

I have spoken with the bank to try to get this matter resolved as well as trying to get more information and I have been denied. I asked to see a copy of the fraudulant check and was advised they did not have that information.

I am stuck I have no where to turn to and the company that should be helping is not doing anything. Am I missing something or am I doing something wrong? I have done everything that they have asked of me and they keep coming up with new information that was supposedly needed in the beginning.
 
What I'm trying to figure out is why you didn't file a police report immediately after your card was lost/stolen and there was an unauthorized break in to your account. You have to file and have no choice - this is the only way the bank can have, in writing, your sworn statement that you weren't involved and the ability to easily prosecute you in the event it is a lie. You might want to start by going into your branch and speaking to someone.
 
That's such a bummer! What ended up happening? If consumer protection rights rests on the motivation of the police dept, then there's essentially no consumer protection.

Too bad it was a debit card. Credit cards are better protected, with the 50 dollar legal liability limit.

thelawprofessor - Does the time from incident to police report really make a difference in what the banks responsibility is here?

I'm not sure why you would think a consumer going through this for the first time would know to report it to the police. Police are very unmotivated to investigate misdemeanor financial crimes for individuals. I tried to give stolen credit cards to the police, which had the perps finger prints all over them, and the identity of the perp was known because the fool entered his own name on the transaction. It was a case of ~$3k in low-tech credit card theft, with all the evidence literally handed to the police, and they could not be bothered. They didn't even bother to take the fingerprinted credit cards.
 
thelawprofessor - Does the time from incident to police report really make a difference in what the banks responsibility is here?

I'm not sure why you would think a consumer going through this for the first time would know to report it to the police. Police are very unmotivated to investigate misdemeanor financial crimes for individuals. I tried to give stolen credit cards to the police, which had the perps finger prints all over them, and the identity of the perp was known because the fool entered his own name on the transaction. It was a case of ~$3k in low-tech credit card theft, with all the evidence literally handed to the police, and they could not be bothered. They didn't even bother to take the fingerprinted credit cards.
1 - Yes. Not only is there a contractual obligation but there is also the bank's ability to prevent the fraud. The bank wasn't at fault here. The depositor was at fault. The first thing to do after your card is lost or stolen is to cancel it - that would seem to make the most sense and prevent fraud.

2 - The police report is required because it also makes the complainant subject to perjury charges and prosecution for fraud in the event this is a check cashing scam. You would not believe the number of scams that are similar to these events where the innocent victim actually knows what is going on and thinks they will get free money by having the bank provide replacement funds. Reporting it to the police may also help for insurance, etc. Think of it this way - it's a sworn statement under oath stating you are willing to be prosecuted with severe consequences if the statement is ultimately discovered not to be the truth.
 
A similar scenario happened to me not to long ago...

From what I was told by the manager at my branch (the one person who was a true help to me...) it doesn't matter if it's the next day or the next year, They have to follow up on a claim of fraud/id theft and let you fill out the afadavit.
However, it is best to act on it ASAP, and not wait...[I was told that Citizen's had a 45 day timeframe, which I had exceeded with my claim...but they were still obligated to act).

As I understand it: The bank (depending on which bank and it's policies) will have X amount of days to complete the investigation...in which time they will apply a temporary credit to your account in those amounts. If once the investigation is complete they find that the charges were authorized by you, then they remove the credit...otherwise it remains on your account.

Currently, I have Chase bank too...(actually Wamu chase) but I was contemplating changing banks. I think your post just helped to convince me that it is a good idea to do so.
 
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