(UTICA, N.Y.) — Two years later, Bank of America is refunding $25,243.71 to a former army reservist for charges he said were fraudulently accrued to his debit card while he was on leave from service.
John McDevitt, a U.S. Army reservist from Clayville, N.Y., served in Afghanistan for a year and spent his two free weeks in Greece in November 2010 according to a policy afforded to soldiers deployed in a combat zone. That was where he claims he was ripped off at a clip joint for the cash off his debit card.
McDevitt said he is “excited” Bank of America is refunding over $25,000 that the nightclub in Athens wrongly charged him.
McDevitt said he is waiting to receive the refund after a senior executive of veteran affairs from Bank of America called him on Wednesday evening to notify him of the news.
“I’m hoping now the politicians in this country will use this to change these laws to protect consumers,” said McDevitt, who has written letters to public officials about strengthening rules regarding fraud protection. “Whether a debit or credit card, if someone forges your name, it’s the responsibility of Visa or the bank to hold that payment until it’s verified.”
T.J. Crawford, spokesman for Bank of America, told ABC News that “from day one our fraud team handled this case by the books, following all internal and external protocols including attempted arbitration with Visa and “it was determined that the dispute is between the merchant and Mr. McDevitt.”
“That being said, in light of Mr. McDevitt’s service to our country we are extending him the benefit of the doubt and refunding the full amount,” Crawford said.
Last week, outraged over the charges he said Bank of America should refund him, McDevitt protested outside a branch in Utica, N.Y., holding a sign that read, “A soldier that puts America first should have a bank that puts the soldier first,”as reported by WKTV.
On Nov. 29, 2010, McDevitt notified Bank of America, which issued a temporary credit to his account for the full amount on Dec. 3, 2010, while the fraud claim was being reported. But the bank took back the funds after determining that “no error had occurred in this instance” as stated in a letter sent Dec. 9. 2010 from the bank.
McDevitt said his only option was to use a debit card because he has been unable to obtain a credit card after his ex-wife filed for bankruptcy.
In a letter provided to ABC News by McDevitt, the bank said that on Dec. 9, 2010, it “received the signed sales drafts from the merchant reflecting your signature and card imprint.”
Attempts by ABC News to reach the club for comment were unsuccessful.
“We found that the transaction activity in question was authorized and posted, or billed, correctly to your account,” the letter stated.
The bank also stated that it attempted a “chargeback” against the merchant but on Feb. 23, 2011, “the merchant represented the transactions stating that they were valid, based on the sales drafts already provided.”
The bank also wrote in that letter, “due to your initial interaction with the merchant, this case is considered a non-fraud claim. Furthermore, you were unable to provide copies of the receipts for the initial transactions that you said you authorized.”
McDevitt said the signatures on the receipts are not his and there is no record of the receipt he actually signed.
When asked whether a customer’s proof that a signature does not match his is evidence of a lack of authenticity, Crawford said “every instance is unique.”
“These are handled on a case-by-case basis,” Crawford said.
In a letter dated May 13, 2011 from the bank provided by McDevitt, the bank said “Our attempts to resolve this matter with the merchant have been unsuccessful. We have exhausted all our available options. We can only suggest that you explore other avenues of recourse to obtain a refund and/or come to a more equitable solution with the merchant.”
The bank, which followed the rules of fraud protection and also took measures in “good faith,” stated that Visa “advised us that they have declined our arbitration case and have decided in favor of the merchant” on May 13, 2011.”
Consumers should be aware of differences in fraud protection for credit cards and debit cards, Beverly Harzog, credit card expert with Credit.com, said. With credit cards, the maximum liability for fraudulent charges is $50. If you report the loss or theft of your card before it’s used, you’re not liable for anything. In most cases, the $50 is also waived
“The rules for debit cards are different,” she said. Harzog said if your debit card is lost or stolen, you have to report this within two business days to limit your liability to $50. If you don’t report it within two days, you can be liable for $500. But if you don’t report an unauthorized transfer within 60 days of receiving the statement showing the fraudulent transfer of money, your losses can be unlimited.
“If there are unauthorized charges on your debit card statement and you haven’t lost the card or it hasn’t been stolen, you have to report the fraudulent charges within 60 days of the date on the statement to limit your liability,” Harzog said. “You’re only liable for charges after that 60-day window if you fail to report it.”
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