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9/22/2017 12:11:25 AM
Posted: 8/24/2005 8:05:41 AM EDT
I know from past conversations that some of you are Netbank Customers. Please let this serve as a consumer alert. If you have your debit/checking account covered with overdraft protection from a money market account this is important to you. In the past, overdraft protection only applied to checks you had written or Billpay payments you made through their website.

Netbank recently changed their policy on overdraft protection. It applies to debit card transactions as well. However they did not notify their customers of this change. I always kept my checking account balance low to help protect against fraud and theft, but this change negates that.

Their change in procedure allowed some asshole with my debit card number (I have no idea how at this time) to make a $700.00 charge to Western-Union. There was not enough money in the checking account to cover this, so netbank happily transferred the funds out of my money market account to cover the fraudulent charge. If they had not made the change in policy this would have never happened.

There is also another $1000.00 of pending charges pending on the card that will still come through although there is no longer any money to cover them.

I am so screwed. I told netbank that they had better replace the money they transferred because they did not inform me of the change in service and left me vulnerable because of it. I canceled all overdraft protection on all of my accounts with them to avoid this in the future.

This can easily happen to you so be careful and make sure you know how your accounts are set up. I THOUGHT I did and it is costing me.

Bob
Link Posted: 8/24/2005 8:12:04 AM EDT
Why did you have a debit card in the first place? The law doesn't protect you from fraud by the bank like it does with a credit card. With a credit card, you're only liable for the first $50. I've seen several people lose their life savings because of a debit card then not have the money to fight the bank. Also, I do about 600 tax returns a year, and I have several customers that ask me for financial advise. I always ask if they've fallen for a bank's offer of a debit card. Quite a few of the people I've talked to have lost money because they didn't look into the law and get a real credit card before getting a debit card. There's a reason banks are pushing debit cards. It's because debit cards are a much better deal for them.z
Link Posted: 8/24/2005 8:13:53 AM EDT

Originally Posted By zoom:
Why did you have a debit card in the first place? The law doesn't protect you from fraud by the bank like it does with a credit card. With a credit card, you're only liable for the first $50. I've seen several people lose their life savings because of a debit card then not have the money to fight the bank. Also, I do about 600 tax returns a year, and I have several customers that ask me for financial advise. I always ask if they've fallen for a bank's offer of a debit card. Quite a few of the people I've talked to have lost money because they didn't look into the law and get a real credit card before getting a debit card. There's a reason banks are pushing debit cards. It's because debit cards are a much better deal for them.z



It is a VISA debit card. It IS covered. It is still a huge hassle and my account is FUBAR for at least a week or more and I still am not sure will happen with my direct deposit.

Bob

Link Posted: 8/24/2005 8:28:05 AM EDT
Sorry to hear that.
It happend to me with my BOA business debit card.
Some fool in N.J. went on a shopping spree to rival that of Donald Trump.
2!...2 new plasma tv's , lots of clothes, liquer, ect... The sh#$head even used my card on the Trasit Authority machines in N.Y.

BOA refunded all money, but YES it is a HUGE hassle.
Again, sorry to hear that.
Doug.
Link Posted: 8/24/2005 2:35:50 PM EDT

It is a VISA debit card. It IS covered.

No it's not. Federal law doesn't protect you as well with debit cards as it does with credit cards. Why do you think banks keep pushing debit cards? It is a better deal for them, and a much worse deal for you. It is much smarter to protect your money by having a credit card rather than a debit card that's tied to your bank account.

More info about the law from the FTC:

www.ftc.gov/bcp/conline/pubs/credit/atmcard.htm

Credit Card Loss or Fraudulent Charges (FCBA). Your maximum liability under federal law for unauthorized use of your credit card is $50.

Debit Card Loss...risk unlimited loss...That means you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts.
Link Posted: 8/24/2005 3:11:08 PM EDT
[Last Edit: 8/24/2005 3:11:30 PM EDT by Ky_Bob]
Zoom,
I am not going to argue with you. I reported the fraud on Sunday night after a failed attempt to make a $1026.00 purchase came across my email notification.
This was before any other losses. This combined with the little problem they have about changing their overdraft policy without telling their customers does not have me worried. I only keep about 200.00 dollars in the account and if they had followed their original policy this would not even be an issue.

Here is the relevant quote in the link you gave.


ATM or Debit Card Loss or Fraudulent Transfers (EFTA). Your liability under federal law for unauthorized use of your ATM or debit card depends on how quickly you report the loss. If you report an ATM or debit card missing before it's used without your permission, the EFTA says the card issuer cannot hold you responsible for any unauthorized transfers. If unauthorized use occurs before you report it, your liability under federal law depends on how quickly you report the loss.

For example, if you report the loss within two business days after you realize your card is missing, you will not be responsible for more than $50 for unauthorized use.
However, if you don't report the loss within two business days after you discover the loss, you could lose up to $500 because of an unauthorized transfer. You also risk unlimited loss if you fail to report an unauthorized transfer within 60 days after your bank statement containing unauthorized use is mailed to you. That means you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts. However, for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.



Bob

Oh yeh, bump for the night shift.
Link Posted: 8/24/2005 3:15:27 PM EDT
[Last Edit: 8/24/2005 3:17:32 PM EDT by leelaw]
Bob, the part you highlighted is interesting, but from your original post, it looks like this part is what applies to you:


However, for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.


If I read that right, it looks like you are liable for any charges made 2 months after the date the original unauthorized use was used.. so.. looks like a 2-month window to report it.
Link Posted: 8/24/2005 3:50:27 PM EDT

Originally Posted By leelaw:
Bob, the part you highlighted is interesting, but from your original post, it looks like this part is what applies to you:


However, for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.


If I read that right, it looks like you are liable for any charges made 2 months after the date the original unauthorized use was used.. so.. looks like a 2-month window to report it.



I think you are correct. Thanks,
Bob
Link Posted: 8/25/2005 8:31:15 AM EDT
I was told today by Netbank, to be followed up in writing, that I am covered by Visa because it is a Visa Check Card. This is very good news.

They are still squirming a bit on my demand that they give my $700.00 back immediately. I am guessing they are waiting for Visa to come through on it.

Bob
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