On 01/16, my Citicard MC was stolen. I immediately contacted Citicard and was told that a fraudulent charge of $130 had been made. They also told me that I would be responsible for the charges until they investigated the complaint, and therefore I threatened to cancel my credit card. They then told me that they would provide a conditional credit while investigating. I also went to the police to file a report, and the lead officer interviewed the clerk, who stated that I was not the buyer. Additionally, video and signature comparison on the receipt showed that I could not have purchased the item.
I submitted to Citicard the Fraudulent Purchase Affidavit as well as copies of the police report, the officer's name and number, and the case number. Citicard put a conditional credit on my account. However, I received notification of a decision today from Citicard stating that I was responsible for the charges because the thief had signed for the purchase, and therefore the charge was "valid."
Additionally, I would also be responsible for any finance charges. Since I pay my account in full every month to avoid finance charges, I was very angry. FTC law states that one is not responsible for fraudulent charges after immediately reporting them to the credit card company. However, Citicard's customer service people stated they are not aware of such a law, although it is on their website.
I immediately contacted the investigating officer, who stated that without a doubt there is overwhelming evidence this charge was fraudulent, and that he would be happy to speak with Citicard. I contacted Citicard, who stated that the investigation is closed and that I will need to pay the charge as well as finance charges. I told them that the affidavit contained the police report as well as the case number; however, because the thief personally bought the item, the charge is "valid" and the conditional credit was reversed.
I have filed a complaint with the FTC and will be contacting the State Attorney General in the morning. The Customer Service Rep from Citicard stated that they transfer fraudulent charges to their Billing Dispute Department. If the Billing Dispute Department sees a signature on the receipt, the charge is valid. Therefore, I am now responsible for the charges and back finance charges. Their website states that the cardholder is not responsible for fraudulent charges, but this is not true.
Citicard tried to get me to pay on two levels. Firstly, I was to send the affidavit to the Billing Dispute Department rather than the Security Department, so that the Billing Department's standards apply. Secondly, I am now responsible for the charge and interest, although this is against FTC law and regulation. When I again complained that this is illegal, Citicard cancelled my card.
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