What to Do When Your Bank Refuses to Refund Fraud Charges

bank refuses to refund fraud charges

Stay on top of your bank transactions and know your rights if the bank refuses to refund fraud charges.

What do you do when your bank refuses to refund fraud charges? Credit cards normally offer protection from fraud, and you can simply dispute the charges with your creditor. Debit cards however can work differently. If someone gains access to your PIN, then they have direct access to your money. Getting your money back can sometimes be a chore. Here are your options.

Timeline and Protecting Yourself

As always, check the fine print with your bank, but here is the typical timeline and your financial responsibility to recover stolen funds:

  • You are responsible for $0 of the fraudulent charges if you report the incident immediately and the card hasn’t been used.
  • Up to $50 if you notify your bank within 48 hours of a lost or stolen card.
  • Up to $500 if you notify your bank within 60 days.
  • All the charges if you notify your bank after 60 days.

As you can see, it is important to report any fraudulent charge immediately. You can find yourself out $50 almost instantly. Here are a few ways that you can protect yourself.

  • Only use the ATM that is inside your bank and cover your PIN entry with your hand.
  • Set up text alerts for all transactions.
  • Select the credit option wherever possible when using your debit card.
  • Consider using a credit card for purchases, especially when traveling.
  • Check in with your bank regularly on what their refund policies are.

Course of Action for a Denied Claim

So, you’ve done everything in your power to protect yourself and monitor your bank transactions. Do you have any recourse if your bank refuses to refund fraud charges?

Your only recourse may be to hire an attorney to navigate the waters for you. Banks may assume that you are trying to dispute charges that you made. It may be necessary to prove that you didn’t actually make the purchase. For instance, an attorney can help prove that you were at work while your debit card was used to purchase an item at a store that is miles away.

Be warned that many attorneys won’t take these cases, since many of them are small dollar amounts, and most end up being false fraud claims. You may be on your own to prove that you weren’t the one who used your debit card to make a purchase.

Final Thoughts

Even if you take all the necessary steps to protect yourself you can still find yourself in a situation where the bank refuses to refund fraud charges. The best course of action that you can take is to stay on top of your bank statements. Set up text alerts so you know immediately when a transaction occurs. Avoid using your PIN by selecting the credit option for purchases. Consider using a credit card and paying the bill in full each cycle. It is often much easier to dispute a fraudulent charge on a credit card.

Using debit is normally safe, and charges can be disputed if done in a timely manner. Just be prepared to fight the battle with the bank alone should they refuse to refund your money.

Read Also:

4 Myths About Credit Cards Debunked!

Top 4 Remarkable Reasons Why You Ought to Use Credit Cards for Your Everyday Purchases

Is Now the Time to Start Using an Online Bank Account?

The Lucrative Side of Credit Cards: Are Credit Cards Really That Bad?


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