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Denying Refunds for Unauthorized ATM Transactions
by David Dickinson and Andy Zavoina, BOL Gurus
Question: If the customer knows the person that used their card without authorization and took the monies, but refuses to press charges, can we deny the refund of monies due to a disputed charge?
Answer by David Dickinson:
BIO AND CONTACT INFO
According to Reg E, it is not the customer's responsibility to press charges against a person for unauthorized transactions. The customer's only responsibility is to notify their financial institution. It is your responsibility to press charges against the criminal.
I do not believe you should deny this request.
Answer by Andy Zavoina:
BIO AND CONTACT INFO
You will step into their shoes, as David noted. Consider yourself lucky that you have a known suspect. Also, determine if this known person was ever given use of the card and PIN. That may shift the liability to the customer. Otherwise, pay the claim, contact the PD and try to get your money back.
First published on BankersOnline.com 9/2/03
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