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Citi is forcing me to pay for fraudulent transaction

Citi is forcing me to pay for fraudulent transaction

Old Jan 20, 2016, 12:41 am
  #1  
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Citi is forcing me to pay for fraudulent transaction

I have had a rather frustrating experience with Citibank. Several months ago, I noticed a fraudulent transaction on my statement. I immediately filled out a dispute online, and they gave me a temporary credit. I thought all was well.

About a month later, I was wondering what came of this and went online to see that the temporary credit had been reversed. However, this did not show up on my recent activity, but rather on the date of the original transaction. If I hadn't scrolled back several months, I would have never noticed that they reversed the temporary credit.

I called in and they said they would re-open the dispute. They sent me a letter asking me to send in proof that I either returned the merchandise or cancelled the transaction in accordance with the merchant's policy. I sent back a reply reminding them that this transaction was fraudulent and I have no idea who this merchant is, and never bought anything from them in the first place. They replied back and said that since I was unable to provide the requested documentation, they would not credit my account.

I called again, and after almost 30 minutes I managed to get through to the fraud department, who told in no uncertain terms that they had ruled against me and that this matter is closed.

I'm not sure what to do at this point. It was a fairly large amount of money and not something I can just write off. Where do I go from here?
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Old Jan 20, 2016, 12:47 am
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Complain to the regulatory agency? Assuming that you're a USA resident with a USA based credit card, you have rights in such cases. Try to read the rules and procedures on the website.
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Old Jan 20, 2016, 4:55 am
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In person? Signature at purchase?

Chip, swipe, number entered manually?
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Old Jan 20, 2016, 6:18 am
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mia
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Originally Posted by cbn42
... Several months ago, ... I immediately filled out a dispute online,
IF filling out the online dispute form triggered your protections under the Fair Credit Billing Act there are procedures that Citi must follow, and it sounds as if they have not. However, I am not confident that the online form satisfies the requirement.

http://www.consumer.ftc.gov/articles...t-card-charges


To take advantage of the law's consumer protections, you must:

Write to the creditor at the address given for "billing inquiries," not the address for sending your payments, and include your name, address, account number, and a description of the billing error. Use our sample letter.

Send your letter so that it reaches the creditor within 60 days after the first bill with the error was mailed to you. It’s a good idea to send your letter by certified mail; ask for a return receipt so you have proof of what the creditor received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.

The creditor must acknowledge your complaint, in writing, within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after getting your letter.

...


If the creditor's investigation determines the bill is correct, you must be told promptly and in writing how much you owe and why. You may ask for copies of relevant documents. At this point, you'll owe the disputed amount, plus any finance charges that accumulated while the amount was in dispute. You also may have to pay the minimum amount you missed paying because of the dispute.

If you disagree with the results of the investigation, you may write to the creditor, but you must act within 10 days after receiving the explanation, and you may indicate that you refuse to pay the disputed amount. At this point, the creditor may begin collection procedures. However, if the creditor reports you to a credit reporting company as delinquent, the report also must state that you don't think you owe the money. The creditor must tell you who gets these reports. The creditor also must promptly report any subsequent resolution of the reported delinquency, to everyone who got a report.

Any creditor who fails to follow the settlement procedure may not collect the amount in dispute, or any related finance charges, up to $50, even if the bill turns out to be correct. For example, if a creditor acknowledges your complaint in 45 days — 15 days too late — or takes more than two billing cycles to resolve a dispute, the penalty applies. The penalty also applies if a creditor threatens to report — or improperly reports — your failure to pay during the dispute period.
As it happens three fraudulent charges were made on my Citi Prestige card on Sunday. I notified Citi by telephone. New card issued. Two of the charges disappeared from Pending, and have not (yet) posted, but the first charge has posted. A letter will be written.
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Old Jan 20, 2016, 1:15 pm
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Thank you mia for reminding us that writing is the only form of filing dispute that would give you the protection according to the law.

Too often we thought calling is enough. It is NOT when it comes to disputing charges. Only writing gives you the necessary protection.

Last edited by Happy; Jan 20, 2016 at 1:26 pm
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Old Jan 20, 2016, 1:21 pm
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Call again and ask to speak to a stuporvisor. Citi is famous for incompetent service. Sounds like you got a lousy one first time around.
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Old Jan 20, 2016, 1:27 pm
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Certified mail, return receipt make it legal, if you want to be treated as a business person.

Call if you like, but the prof is not there.
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Old Jan 20, 2016, 7:05 pm
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Thanks for the remainder guys, that writing in certified letter is the best option.

I had issue with chase freedom and they resolved it fairly quickly. Shutterfly was the vendor who charged on my account stored on their site without any authorization .

Chase closed the case in my favour. I hope citi does the same
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Old Jan 21, 2016, 8:55 am
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mia
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Originally Posted by mia
As it happens three fraudulent charges were made on my Citi Prestige card on Sunday. I notified Citi by telephone. New card issued. Two of the charges disappeared from Pending, and have not (yet) posted, but the first charge has posted. A letter will be written.
A "SECURITY CREDIT" has now posted to offset the one charge which posted.
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Old Jan 21, 2016, 9:07 am
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Citi's fraud department is a bunch of bozo's with bozo policies. 1. Activate a new Citi card per the instructions and one is told that the card is "ready for use." 2. Go shop somewhere. 3. You will be declined at the register. Cashier will look at you as if you are a criminal. Everybody on line will be pissed now that you are the one holding up the line. Happens every time without fail because of Citi's antiquated, prehistoric fraud policies. The fact that they initially refused to validate your complaint of fraudulent charges doens't surprise me in the least. Bunch of Bozo's.


Fraud Department

Last edited by BillyBaloney; Jan 21, 2016 at 7:12 pm
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Old Jan 21, 2016, 7:27 pm
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"Bozos" seems a bit extreme, given the huge amount of CC fraud with which these banks have to deal. If a card doesn't work, swipe a different card. Shouldn't add more than 30 seconds to the transaction.
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Old Jan 21, 2016, 7:41 pm
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Originally Posted by jsk1973
"Bozos" seems a bit extreme, given the huge amount of CC fraud with which these banks have to deal. If a card doesn't work, swipe a different card. Shouldn't add more than 30 seconds to the transaction.
It is entirely the banks fault that the fraud exists in the first place. Outside the US, EMV has been in use for years and it has significantly reduced fraud. In the US, the rollout is happening at a glacial speed.

Also, to stay on topic, I believe there is a fundamental difference between a dispute and a fraudulent charge. A dispute means that you recognize the charge but have a disagreement with the merchant. A fraudulent charge means that you did not authorize the charge. If you dispute a charge, your account will remain open. If you inform the bank of fraud, your account will be immediately closed and reopened with a new account number (to prevent further fraud). Big difference.
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Old Jan 21, 2016, 7:41 pm
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Don't worry about having used the online form. Citi accepts it and while it could deny you FCRA protection, it doesn't.

I would try one more phone call to see if you can get somewhere with a supervisor. Try the, "I'm confused" route. "How can I have documentation of something that's a fraud?"

Barring that, CC disputes are just one way to resolve the issue. You aren't entitled to a favorable resolution, just a review and if you are denied, you've got a small claims remedy which will likely result in a quick call from a Citi paralegal.

I doubt that a complaint against Citi helps because it seems as though Citi not only did review your complaint, but reopened it when you asked to have that done.
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Old Jan 21, 2016, 7:49 pm
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I see the OP is apparently big into manufactured spending. I wonder if this was MS-related.
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Old Jan 21, 2016, 7:53 pm
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To the OP: here is a link to a blog post that describes the difference between fraud and a dispute. I believe Citi has handled your case the way it did because you disputed the charge instead of reporting it as fraudulent.
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