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#2068774 - 03/11/16 08:44 PM Warm-carding a debit card so customer will call
rsanders Offline
Member
Joined: Feb 2010
Posts: 72
So it just came to my attention that we have an employee in our operations department ( actually she is over the deposit operations) who will warm card a customers debit card when she can't get them to call her back about things like needing an address change. If they don't answer after repeated calls, or they promise to bring the information but never do, she warm cards their debit card so that the customer will call the bank asking why they can't use their card. I don't like this practice but is there any regulation that it actually violates? It certainly isn't good customer service. But I wanted to have all my ducks in a row before I confront the issue.
Last edited by John Burnett; 03/11/16 09:25 PM. Reason: Subject
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#2068781 - 03/11/16 09:11 PM Re: Warm-carding a debit card so customer will call rsanders
deed305 Offline
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Joined: Sep 2005
Posts: 47
California
Not all core systems utilize the term "warm card"- but mine does so I'm familiar with this term. Normally that status would only be used when your EFT processor is blocking due to Neural Net system findings (think Falcon).

I would check Reg E. The only reason we should be blocking cards without pre-notification, that I am aware if, is due to risk issues- which fraud monitoring/management for Neural Net systems would be.

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#2068796 - 03/11/16 09:28 PM Re: Warming carding a debit card so customer will call rsanders
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
I could easily see someone in the CFPB arguing this as an 'abusive' practice. Unless you've got something in your card agreement covering the 'warm carding' due to anything other than what deed305 has stated, I'd stop the practice.
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#2068797 - 03/11/16 09:30 PM Re: Warm-carding a debit card so customer will call rsanders
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Taking this sort of action is something that ought to be approved by policy or included in agreed-upon procedures rather than the whim of a single individual. It would make more sense if the customer was misusing or abusing the card. I have read in other threads about banks that employ such tactics, but my impression was that the bank made a management decision to do so.
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#2068811 - 03/11/16 11:09 PM Re: Warm-carding a debit card so customer will call rsanders
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
"Warming" someone's card because you want a call back is both rude and a violation of your contract. However, if you give a little person a little power they will use every ounce of it.

Hand "She Who Must Be Obeyed" a copy of FIL 59-2015 Your regulator will not need to cite her (your bank) to a law or regulation.
Last edited by Ken_Pegasus; 03/16/16 12:45 PM. Reason: Add link to FIL
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