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A few days ago, I realized that Chase has made a withdrawal in November from my checking account that I have not authorized. I checked my Chase credit card account and saw that the money was not deposited to my account. So I called Chase customer service; they also couldn't find such a transaction in my account, wanted me to fax my bank account statements and in the end they told me to file a fraudulent charge claim with my bank. I contacted my bank's fraud department and they said they can't do anything about it since such notifications should be done within 60 days of the bank statement.

Please help me out with this folks, because this is not an amount that I can swallow easily. It seems like either there was a glitch in Chase's system or somebody deliberately siphoned some money off my account to pay their credit card. But I don't know what to do if Chase refuses to pay it back.

Question 1: Is there a way that Chase can track this transaction and find out where the money was deposited to? I have a reference number on my statement, but during my conversations they never used it. Maybe there is a specific department in Chase that I should be talking to?

Question 2: I will still push harder with my bank by going into my branch and talking to the representatives there and also filing a written dispute. But if they don't respond positively, what are my options? FDIC, FTC or what?

I think it is ridiculous that they won't help me just because I am past the deadline, this is not a stolen ATM card, we know where the money went, it shouldn't be difficult for them to contact Chase and figure out what happened.

Thanks in advance for any suggestions.

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Your bank doesn't have to do anything per the EFT Act.

File a complaint against Chase N.A. with the OCC.
Failing that, file in small claims to help Chase refresh their memory.

DeGlass said: Your bank doesn't have to do anything per the EFT Act.

File a complaint against Chase N.A. with the OCC.
Failing that, file a small claims to help Chase refresh their memory.


Right. After the cutoff, your bank has no liability to assist you with this. That does not mean you cannot recovery your funds, but means you must pursue the recipient directly. You might want to ask if you bank can investigate the transaction and get some more details about it, such as what account was credited. Again, this is information you bank does not have nor has a requirement to find for you anymore, but they may be willing to contact Chase and ask for the details. At this point, the ball is in Chase's corner about doing anything or providing any information about it. But if you prod them right, they might be forthcoming.

Next time, balance your checkbook and verify transactions AT LEAST once you get your statement, if now online sooner.

I assume this was an ACH debit (withdrawal)?

There is a NACHA (North American Clearing House Association) rule that allows you to dispute an unauthorized ACH debit from a consumer account within 60 days. Your bank can then automatically reverse the debit and get reimbursed from the bank that originated it -- no questions asked. If the 60 days has passed, your bank can no longer do it.

BUT...You have a second right in Federal law. Under Federal Reserve Regulation E, there is no time limit to dispute an unauthorized electronic transfer that was not associated with an "access device" such as a debit card. The only limit is that if there was a series of unauthorized transfers, you may lose the right to dispute any additional transfers that occured more than 60 days after the first transfer appeared on a bank statement if you do not report the original unauthorized transfer. But there is no time limit on disputing the original transfer.

The problem with Regulation E is that if your bank refunds the money under Regulation E, they cannot automatically charge it back to the originating bank and may have to eat the cost of the fraud themselves. Hence they will give you a hard time.

Most banks set up their systems so that the frontline customer service reps can only handle claims under the 60 day NACHA rule. And they do not train their low level people at all. You are going to have to work your way up the management chain to press a Regulation E claim. Use the words "I want to make a Regulation E claim." You will get blank stares from the lobby staff. The manager may or may not know what you are talking about and may try to BS you. Hold your ground. Insist that the manager contact management in the Electronic Funds Transfer department of the bank, they should know what you are talking about.

If you get nowhere working with your bank, contact the OCC. If they are not the right agency, they will refer you to the right agency. Tell them that you tried to file a claim for an unauthorized electronic funds transfer under Regulation E, but that your bank is refusing to honor Regulation E claims.

Addendum:

To those who say that your bank does not have to do anything under the EFTA:

Federal Register Volume 71, No 168, page 51447, the Federal Reserve says:
"Some
institutions asked the Board to clarify
that the limits on consumers’ liability
for unauthorized transfers only apply to
transactions occurring during the 60
days preceding the date the consumer
electronically accesses his or her
account. However, such a rule would
not be consistent with the EFTA, which
does not contain a time limitation for
asserting an unauthorized EFT claim.
See EFTA § 909; 15 U.S.C. 1693g."

You may also want to review the opinion of the banking gurus at bankersonline.com.

I appreciate all the input everyone, thanks a lot!

I think clampuke is right, I read Regulation E a few times here and in Section 6 it says Periodic statement; timely notice not given. A consumer must report an unauthorized electronic fund transfer that appears on a periodic statement within 60 days of the financial institution's transmittal of the statement to avoid liability for subsequent transfers. If the consumer fails to do so, the consumer's liability shall not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the institution, and that the institution establishes would not have occurred had the consumer notified the institution within the 60-day period.

So if there were more unauthorized electronic withdrawals from my account after the cutoff, bank would not have any responsibility on those. But for the initial unauthorized withdrawal, they still have to reimburse me, even after the cutoff. However, I should emphasize that this is for electronic transfers without an access device, i.e. stolen/lost ATM-debit card withdrawals have stricter deadline requirements.

Now the question is how I should file this claim. Because I don't think the guys at the branch would have the slightest idea of what I am talking about. Is the EFT department responsible for Reg. E claim? Should I try to directly contact them instead? I called the fraud line before and all they know is the 60-day rule. Or maybe explaining this to the representative at the branch would be easier than spending hours on the phone trying to find somebody who will know the regulation perfectly?

OP,

Even if you don't mail the written complaint right away, I'd still write it now. This will help you greatly in explaining your situation verbally.

Given the fact that the bank has already rejected your claim, I would send the complaint off to the OCC immediately, yet continue to pursue the matter with your bank in parallel.
You never said which bank it is.

Your options?

Read your account statement when it comes in

I filed the Reg E claim today. As expected, it took me a while to convince the branch manager that I was right. She read the regulation that I printed out and called the Fraud Department, etc. In the end, they let me fill the form, and I think I will be getting my money back soon. If not, I'll file a complaint with OCC. I am thankful to everybody who tried to help, especially clampuke. (Let's not forget chocula as well; that comment changed my way of living, how I communicate with other people, how I reach out to my loved ones... How lucky are we to have you around, chocula?! )

My bank is USBank by the way, and also I managed to squeeze out some info from Chase rep today. When I asked the 10th time if somebody had paid their credit card debt with my money, she finally said yes... I still am not sure if it is a glitch or if somebody has my checking account number though. I guess I will close this account and check my credit report more frequently to be on the safe side.

Thanks again everyone!

muratk said: A few days ago, I realized that Chase has made a withdrawal in November from my checking account that I have not authorized. Thanks in advance for any suggestions.

How about to start a habit of reviewing your bank statement monthly so it won't take you about 4 months to figure out that something is wrong?

muratk said: .....and also I managed to squeeze out some info from Chase rep today. When I asked the 10th time if somebody had paid their credit card debt with my money, she finally said yes... ......

That comment guarantees you will get your money back. File a CONCISE written complaint against Chase immediately with ALL DETAILS included.

When Chase was notified that your account was used to pay someone else's credit card without your authorization, they should have reversed the payment immediately following a faxed affidavit stating such.

The reason I say it guarantees that you will get your money back is because they know where it went, neither bank will lose their money (just employees time). They can reverse the transaction, but it will definitely require written statements from OP (which the form that USBank has may be enough).

Call USBank and find out who is assigned to your claim. Make sure they get the info you received from Chase. Once they know that the money is recoverable, they will be more willing to work with you.



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