We have a member who contacted us within a few days of several ATM w/d's stating that she did not authorize. She felt it was a co-worker. The co-worker was with the member when she had used her card so our member felt that was how the pin was obtained. The member did go to the police and a warrant for the co-worker's arrest is outstanding. This was a year ago after the initial contact with us and we suggested she contact the police she never returned phone calls from us to check the status. Therefore we never refunded her account. She contacted us recently to see if we would refund the account since the police did not seem like they were working to arrest the co-worker. It was at this time that our member provided us with a copy of the police report. That is when we discovered that her boyfriend gave the co-worker the card and pin and asked her to withdrawal $500 for him, which she did along with $660.00 for herself. At this point I have no idea what our obligation is. I have not been able to contact our member again. Any assistance that could be given would be greatly appreciated.
Thanks

There are several issues to deal with here.

1. timing- it has been a year since the incident.
2. authorization- was the person granted authorization to use the card.

1. technically, a Reg E complaint should have been filed when you were verbally notified that the customer had charges taken that weren't hers. Since it wasn't filed you are probably going to be out of compliance for that. Why did she wait so long to contact you? because she was waiting on the police? Either way you should probably reimburse her.

2. I don't think a user who is granted authorization to use a card can then extend the authorization to a third party. If the story is true, she should have a beef with her BF as well.