I'm writing about a friend of mine, whose debt/credit card was able to get charged past the limits of U.S. Banks policies. I'v been helping my friend sort through the charges. The debt/credit card was issued by US bank, the charges in question were made over the internet at an online casino. Regardless of where the charges were made, the question is how the charges were made? The online casino was able to get pre-authorized charges made on the card.[exampl: if my friends account balance was $40.00 the online casino would force $300.00 worth of pre-authorized charges off of $40.00 the online casino can use that $40.00 to keep getting pre-auth. Charges to go through.
After investigating further, I found the reason they could do that was based off of how my freind made the charges. He was only making $20.00 purchases at a time. After 15 x $20.00 the charges got to over $300.00. I thought, maybe if he had tried to purchase $100.00 On his $40.00 he might have been declined.] I was wrong the next example[There was a point in which the online casino was able to get $800.00 worth of charges authorized when my friend had a negative balance of -$60.00 in his account.
That was the craziest thing I'd ever seen in my life]. At this piont I called U. S banks and wanted an explanation of how my friend was able to have racked up a negative balance of -$4,300.00 when the Bank's limit was only $3000.00.
A customer service rep. Went over some of the terms of pre-authorized charges, authorized charges, outstasnding pre-authorized charges, and pending charges some of her answers made since, but when asked about charges going over the $3000.00 limit she began to get real flustered about the process, I asked for her to send me a copy of all pre-authorized charges that were still pending, she faxed over a copy with 26 charges equalling $3075.00 the fax also showed 12 charges that had crossed out with a maker, the 12 charges equalled another $1,225.00 over the Banks limit.
The bank didn't know what or how it was happening, but still the bank blames their own customer.
Eugene
Boise, ID
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