Anyone please tell what are the steps taken by Banks for misuse of its customer's Credit card?

Question

Recently my friends CC was misused by some one through internet transaction.He reported it to the bank after seeing the statement. Bank told that no need to pay the amount and it will take proper investigation and get back within 60 days. Its almost 30 days over. No reply from bank. So can anyone know how the banks will be proceeding in thses cases?Are they reliable? do we need to pay the amount at the end (?)? If police and will be involved? If they track the theif/criminal, what will be step taken against him? Will there be any pressures from banks for my friend? Please reply w

Answer 1

DO WE NEED TO PAY THE AMOUNT AT THE END (?)?

The Fair Credit Billing Act guarantees that... "your maximum liability under federal law for unauthorized use of your credit card is $50."

If you report the loss of your credit card BEFORE fraudulent charges are made, you cannot be held responsible for ANY of those charges -- in other words, you owe nothing.

If the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.

SO CAN ANYONE KNOW HOW THE BANKS WILL BE PROCEEDING IN THESE CASES?

Each financial institution has their own policies and procedures set in place to investigate and handle complaints regarding credit card abuse.

ARE THEY RELIABLE?

Yes.  They are required to follow regulations set forth by law.

IF THE POLICE WILL BE INVOLVED?

Depends on the extent of the credit card fraud.

If the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.

IF THEY TRACK THE CRIMINAL, WHAT STEPS WILL BE TAKEN AGAINS HIM?

It depends on whether the case involved intrastate or interstate violations, the individual's criminal background, the amount of the fraudulant use, and various other factors.

WILL THERE BE ANY PRESSURES FROM BANKS FOR MY FRIEND?

No.  Unless they determine that the fraud did not actually take place or that your friend participated in the fraudulant use.