Has Someone Used Your Credit Card and the Bank Is Still Insisting That You Pay the Charge?

Picture this: You've just found out your credit card has been stolen, and someone is now racking up charges in your name. Even worse, your bank is making you pay for them. Crazy, right? Well, it can happen. Credit card companies might answer your call for help with an unsupportive response. However, that does not mean you are stuck or must pay for it. There are still ways to fight back and be heard.?

What Might You Be Liable For??

You have protections under federal law dictating what you might have to pay if your credit card is stolen. Depending on your circumstances could change your liability. For example, if you report that your credit card was stolen before someone had the chance to use it, you are not liable for any money. However, if you were to report your credit card was stolen after someone used it, you become liable for a maximum of $50. This is important to keep in mind going forward.?

Was the Card Present?

A bank might insist you pay what was charged because it was a "card present transaction." If this is the case, that means that the card was physically used to purchase the items. However, there is a chance that the actual credit card was in your wallet the whole time. If that is the case, the thief might have forged and used an identical card to yours. In this circumstance, it is important to collect evidence to help prove that your card was in your possession the whole time and to move forward with your next steps to dispute the claim. Forged cards are more and more common, but that does not mean you must pay the price.?

Your Next Steps?

Whether your credit card was used physically or digitally, here are your next steps to ensure you do not have to pay back what your bank is insisting.?

Gather Evidence?

Evidence is the most significant part of protecting yourself against fraud and the banks who might not be on your side at first. You should collect any and all evidence of the fraud itself, proving that it was committed and that you were not the one to do it. This evidence will be necessary in the following steps.?

Report It to Your Credit Card Company in Writing Immediately.

The Fair Credit Billing Act (FCBA) covers billing errors involving open-end consumer credit transactions, such as with credit cards and store charge accounts. The FCBA establishes procedures for complaining about billing errors and requires creditors to respond to such complaints. You must notify the bank in writing within 60 days of receiving your billing statement. The notice should include your name, address, account number, the date and amount of the error, and a brief description of the error. You should also include copies of receipts or documents supporting the claim. Again, remember that the claim must be in writing.? Many credit card companies encourage you to call them. Don’t do it. If it’s not in writing, it doesn’t count. If it’s not within the 60 days, it doesn’t count.

File a Complaint With Your Bank's Regulator?

If your bank has concluded that it will not continue the investigation and is insisting that you must pay the charges you know you did not make, it is time to file a complaint with the bank's regulator. This will help get the bank's attention and push the investigation further. Additionally, you have the right to ask the bank the exact reason why they denied any investigation, and you have ten days after getting that explanation to send them a letter of appeal.?

Continue With the Identity Theft Process

Like any case of identity theft, you want to report it to the proper channels. This includes reporting the fraud to the Federal Trade Commission. It is ideal to report as quickly as possible to ensure your case is moved along. In this circumstance, it could be wise to report the fraud and unhelpfulness of the bank to the Federal Bureau of Investigation, as well.?

Report to the Police

A police report is necessary in order to show the bank, the bank's regulator, and the other organizations you report to that you are taking the fraud seriously and moving forward with the intent to get it fixed. Filing a police report will also ensure the issue is handled in a criminal investigation, as well.

Dispute any Credit Reporting of the Increased Balance to the Credit Bureaus

Aside from making you pay for somebody else’s enjoyment of your credit, the unauthorized charges can also damage your credit score. Your credit utilization ratio is the percentage of your total credit that you are currently using compared to the total amount of credit available to you. It's an important factor in your credit score, and lenders use it to help determine how well you manage your debt.? Because your credit card most likely has a limit, and the thief’s charges are using up some of that limit, that increases your credit utilization ratio and decreases your credit score.

Find an Attorney?

Lastly, and most importantly, is to find an attorney. This process can be strenuous, and doing it by yourself could lead to you not being heard by your banks or other organizations.? Be sure your attorney has experience with the Fair Credit Billing Act and the Fair Credit Reporting Act.? Most will take the case on a contingent fee. ? Partnering with an attorney can ensure that you take the proper steps, acquire the correct evidence, and create a strong case. An attorney can help ensure you don't have to repay your bank for money you did not spend.?

Being told to pay back charges you did not make can be frustrating. Don't let your bank tell you what to do. Partner with an attorney and be heard. If you have further questions or have found yourself in this situation, send me a message or contact the team at Stecklein Robertson Law.