Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#1214926 - 07/09/09 03:57 PM Reg E Dispute--cardholders spouse used card
melissajdl Offline
New Poster
Joined: Oct 2004
Posts: 13
We have a cardholder who has disputed quite a few transactions and today we received a chargeback for one of the items (others will soon follow, I'm sure) and learned that the person who placed the order with the merchant was the cardholder's spouse. We know this because the merchant provided the invoice for sold/ship to. Can we charge this back to the customer? If he insists she was not authorized to use his card and did so anyway, what are our rights?

Return to Top
Operations Compliance
#1214986 - 07/09/09 04:43 PM Re: Reg E Dispute--cardholders spouse used card melissajdl
YoungAndEager Offline
100 Club
Joined: Apr 2009
Posts: 135
Indiana
Was the final credit issued?
_________________________
"...muffins are just bald cupcakes." -- Jim Gaffigan

Return to Top
#1215001 - 07/09/09 05:02 PM Re: Reg E Dispute--cardholders spouse used card YoungAndEager
Pup Offline
Power Poster
Pup
Joined: Sep 2003
Posts: 5,045
Pedaling along a scenic highwa...
I think you still have to honor the credit, but you are in a position of financial loss due to unauthorized use of a debit card, so you should have legal recourse in the form of charges filed against the spouse.

Return to Top
#1215744 - 07/10/09 04:32 PM Re: Reg E Dispute--cardholders spouse used card Pup
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Is the spouse also on the card, or just the first spouse?
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1215767 - 07/10/09 04:55 PM Re: Reg E Dispute--cardholders spouse used card melissajdl
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
If the products were ordered by the wife and shipped to their house, I would say these are not unauthorized transactions:

205.2(m)Unauthorized electronic fund transfer means an electronic fund transfer from a consumer's account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1216585 - 07/13/09 06:51 PM Re: Reg E Dispute--cardholders spouse used card rlcarey
melissajdl Offline
New Poster
Joined: Oct 2004
Posts: 13
We gave provisional credit, but I have not processed the chargeback against our customer. The account is in the cardholder's name only. I would not have a problem with this situation IF this particular customer had not done the same thing no less than eight times in the last year because he knows he can get away with it. If it were up to me, the account would be closed and that would be the end of it.

Return to Top
#1216598 - 07/13/09 06:58 PM Re: Reg E Dispute--cardholders spouse used card melissajdl
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,965
TN
Can you at least take away his card? I think your bank needs to cut it's losses.
_________________________
My Opinions Only

Return to Top
#1216667 - 07/13/09 07:51 PM Re: Reg E Dispute--cardholders spouse used card Skittles
Georgia Plum
Unregistered

I agree with Duchess, burn the darn card!!! Also, I'd explain to the cardholder that we have sufficient proof to know who is doing the fraudulent activity and that the Bank will be pressing charges against this individual.

Return to Top
#1216673 - 07/13/09 07:58 PM Re: Reg E Dispute--cardholders spouse used card
melissajdl Offline
New Poster
Joined: Oct 2004
Posts: 13
I did close the card and told him he would not be getting a new one.

Return to Top
#1216717 - 07/13/09 08:43 PM Re: Reg E Dispute--cardholders spouse used card
M Cockrell Offline
Diamond Poster
M Cockrell
Joined: Jan 2003
Posts: 1,046
Dallas, TX
Originally Posted By: Georgia Plum
I agree with Duchess, burn the darn card!!! Also, I'd explain to the cardholder that we have sufficient proof to know who is doing the fraudulent activity and that the Bank will be pressing charges against this individual.
And, as Randy stated in his earlier post, the card member should have received no benefit. If there's any indication he did, you may want to consider legal action against him for filing a false claim.

At the very least, I'd take away card privileges (and notate the account with some kind of WARNING message), but I'd be looking to close the account relationship altogether.
_________________________
"Remember no man is a failure who has friends." - Clarence (the Angel) Oddbody - It's a Wonderful Life

Return to Top
#1216768 - 07/13/09 09:46 PM Re: Reg E Dispute--cardholders spouse used card M Cockrell
C_Groat Offline
Member
Joined: Mar 2006
Posts: 70
Salt Lake City, UT
Outside of closing the account, since they are moto/internet get an affidavit from the cardholder and still process the chargeback. If merchant represents, get an updated letter from the cardholder after he reviews and signs that the merchandise was sent to his home, and go back out against the merchant or if CH will not provide an updated letter and since the merchant's documentation shows the merchandise was delivered to his home address, I agree with rlcarey that you can show he cardholder benefited from the purchase and they are not unauthorized.

I would prefer the chargeback method as it will most likely cause the cardholder with additional agony advising the merchant will most likely go after the spouse for the theft of goods or submit to a collection company and his address could potentially be flagged by the shipping company (Fed-x, UPS or USPS) as a fraud address making future deliveries tougher to get.

Return to Top

Moderator:  Andy_Z, John Burnett