How to Handle Unauthorized Charges in California

Unauthorized charges can be a frustrating experience, especially when they occur on your bank account or credit card statement. If you find yourself facing this issue in California, it’s essential to know your rights and the steps you can take to resolve the situation effectively.

1. Identify the Unauthorized Charge

The first step is to thoroughly review your bank or credit card statement to identify the unauthorized charge. Check the date, amount, and description of the transaction. Sometimes, a legitimate charge may appear unfamiliar due to the merchant's name. If you do recognize the transaction, it may be worth reaching out to the merchant for further clarification.

2. Gather Evidence

Once you’ve confirmed that the charge is unauthorized, gather relevant evidence. This includes correspondence with the merchant, receipts, and any other documentation that may support your claim. Having a clear record of events will facilitate your communications with financial institutions.

3. Contact Your Bank or Credit Card Issuer

Next, contact your bank or credit card issuer without delay. Most financial institutions have a dedicated fraud department to handle unauthorized charges. It’s advisable to report the charge as soon as possible, either by calling customer service or using their mobile app. Make sure to follow their procedures for disputing a charge, which often involves filling out a formal dispute form.

4. Understand Your Rights

In California, consumers are protected under various laws regarding unauthorized charges. The Fair Credit Billing Act (FCBA) allows you to dispute charges and limits your liability to $50 for unauthorized transactions if you report them within 60 days. Additionally, California Civil Code § 1747.08 prohibits merchants from asking for credit card information beyond what’s necessary for completing a transaction.

5. Monitor Your Account

After disputing the charge, continue to monitor your bank and credit card accounts closely. Regular checks will help you spot any subsequent unauthorized transactions quickly. Consider setting up account alerts to notify you of any charges above a certain amount.

6. Consider a Fraud Alert or Credit Freeze

If unauthorized charges are recurrent, you might want to consider placing a fraud alert on your credit report. This alert notifies creditors to verify your identity before extending new credit. For more stringent protection, a credit freeze can restrict access to your credit report entirely. You can implement these measures through the three major credit bureaus: Experian, TransUnion, and Equifax.

7. Report to Authorities

If you suspect that you’ve been a victim of identity theft, report it to the Federal Trade Commission (FTC) and file a report with your local law enforcement. Be sure to have all relevant documentation ready to provide as evidence of the theft.

8. Seek Legal Advice if Necessary

If the situation escalates and you are unable to resolve the unauthorized charge through your financial institution, seeking legal counsel may be advisable. An attorney specializing in consumer rights can provide guidance on the next steps and assess whether further action is warranted against the merchant or financial institution.

Conclusion

Handling unauthorized charges in California requires prompt action and awareness of your rights. By following these steps, you can navigate the process more effectively and protect your financial interests.