Credit cardholders who discover unauthorized charges are protected against liability if reported within 60 days, though banks may initially deny fraud claims.
Consumer Adviser Clark Howard tells cardholders not to give up after an initial denial, urging them to file a second dispute and submit formal complaints with regulatory agencies if necessary.
Federal protections shield credit card users from financial liability when their account information is stolen or compromised.
“I’ve talked over the years about the special protections that exist when you use a credit card, if it ends up being compromised, that you are not liable for the charges as long as you notice them within 60 days,” Howard said.
However, an increasing number of consumers report facing pushback from their banks when reporting unauthorized activity.
Howard explained that banks frequently claim disputed transactions are valid during initial inquiries.
“But I keep hearing from more and more people that they’re having trouble when somebody gets their number, uses it, they contact their bank. And then the bank is like, nope, we think it was a valid charge,” Howard said.
Despite an initial rejection, consumers should not abandon their claims.
“Just because the bank plays tough with you doesn’t mean you give up,” Howard said.
When an initial claim is turned down, cardholders can take specific follow-up actions to challenge the decision directly with their financial institution.
“You go back at them with a second dispute of the charge,” Howard said.
If the institution still refuses to reverse the unauthorized charge, consumers can escalate the matter to outside oversight bodies.
Howard noted that formal administrative channels exist to hold banks accountable when fraudulent charges are not resolved.
“And if you have to, you file a complaint against the bank with the Better Business Bureau and at consumerfinance.gov,” Howard said. “Because if somebody’s running around using your credit card, you’re not the one who’s supposed to pay.”
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