Will bank refund for card theft due to stupidity?

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YellowCrayon
 
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Will bank refund for card theft due to stupidity?

Postby YellowCrayon » Fri Jan 20, 2017 9:38 am

I can't seem to find a good answer to this on Google, so curious if anyone has any insight or has been in a similar position.

My husband got very drunk while out with friends. He saw someone begging for change and handed the guy his credit card, pointed at the McDonalds across the street and said, "Go get yourself whatever you want! I'm going to stay outside and finish my cigarette." Shocker: The guy never returned with the card.

I noticed a bunch of fraudulent charges totalling a few hundred dollars the next day. And my husband called to cancel the card out. The bank asked him what happened -- if he'd lost his card or what. And my husband, bless his honest heart, told them he GAVE his card away to the homeless guy.

The bank has already given credits against the fraudulent charges, but I'm worried. I've read it's often the case that banks will refund you immediately but then investigate. And I'm concerned my husband's honesty will make them decide, "Well since he gave his card away, we're going to take back the refunds."

Anyone know what we can expect?


JustRewards
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Re: Will bank refund for card theft due to stupidity?

Postby JustRewards » Fri Jan 20, 2017 10:53 am

You are correct that there will likely be a follow up investigation and if they have your husband's admission on record it very possible he may be on the hook for the unauthorized charges, which may be deemed authorized (at least the ones made that night). However, I doubt they would allow the account to stay open now that the card is no longer in his possession and reported lost, so at least the damage would probably be limited to the first few charges if not entirely forgiven. Good luck.

Stros05
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Re: Will bank refund for card theft due to stupidity?

Postby Stros05 » Fri Jan 20, 2017 3:10 pm

If it is only a few hundred dollars, then I bet the bank is done with evaluating the charges. The rep probably has enough authority to issue that level of credit and they will not want to spend anymore time working the issue. It was a one-off crime and not worth researching further. That is my two-cents worth.

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CarefulBuilder14
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Re: Will bank refund for card theft due to stupidity?

Postby CarefulBuilder14 » Fri Jan 20, 2017 9:04 pm

I wouldn't be optimistic.

The only person who is supposed to use a card is the person whose name is on it. Telling the beggar that he could use the card for a meal isn't actually authorizing him to do so.

That said, I think most/all card agreements require the customer to take common sense basic security precautions with a card...and giving the card to a beggar would be a violation of that.
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mountaindewvoltage
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Re: Will bank refund for card theft due to stupidity?

Postby mountaindewvoltage » Thu Jan 26, 2017 12:23 am

JustRewards wrote:You are correct that there will likely be a follow up investigation and if they have your husband's admission on record it very possible he may be on the hook for the unauthorized charges, which may be deemed authorized (at least the ones made that night). However, I doubt they would allow the account to stay open now that the card is no longer in his possession and reported lost, so at least the damage would probably be limited to the first few charges if not entirely forgiven. Good luck.


Legally the card is non-transferable as it says on the back. Also, the bank shouldn't care as McDonald's doesn't have EMV readers anyways. If we had readers that read the chip and required a PIN, this wouldn't have happened, so technically they [McDonalds] are liable for stolen card fraud even if the card wasn't cloned... Just a little loophole the OP's friend's bank can get out of paying from their own reserves to cover the fraud.



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