We have a customer who has filed disputes on ten debit card transactions by online gambling websites. She admits going to and registering on a poker website (we have cancelled her debit card), but claims she did not authorize all of the charges from the other website. We have the clause in our debit card agreement that states the customer will not use the card for illegal activities, can we deny the disputes based on the fact that she went to gambling websites and registered her information?

No. You have to determine whether or not she authorized the transactions. If she didn't, you have to follow 205.6 to determine her liability for the transactions. If she did, you deny the claim.

I hope canceled means not reissued.

And while she violated the terms of her agreement (based on your comments) with you, that doesn't remove her Reg E rights, as John noted. (John is looking younger and younger, BTW.)

If this was allowed, some bank would throw in some legalese that could disqualify every claim ever made.

We have the same situation this week - we can tell from the customer's statement that she clearly entered her bank info in the online gaming site (she says as much in the statement) but she insists in the statement that putting in her banking information gave her "free credits" and the site was free.

Yet now she's saying the charge is unauthorized - it's frustrating because she clearly says she put her bank information in the website.

I was hoping to find a way to deny her claim, but I guess we're going to have to file the dispute and cross our fingers.

You should look at that site and read the terms. Often it is free, and we'll ship you this unless you cancel by X date, or the item is free, with shipping and handling.

The problem is that consumers don't need a license to use a debit card. Why do they think they're being asked for their bank account info? Why do they think free means a company just wants to lose money sending them stuff?