What to Do When an Unauthorized Debit Is on an Account?

Most Americans know that monitoring their credit reports is important for financial health. However, the same can be said for your own personal accounts. Whether you complete online banking or receive statements each month, it's critically important to be cognizant of all transactions and debits on your savings and checking accounts. If you do find an unauthorized debit, you must know the process for rectifying that charge.

Catch It Early

Most banking institutions want you to monitor your accounts. They will not do all of the work for you. As such, many banks will impose penalties for failing to notify them of an unauthorized debit. This can cost you dearly. Most banks want to you to file a report with them within two days of the unauthorized charge. This will leave you liable for perhaps about $50 of the charge (if the debit is substantial). If, however, you wait a month or more, you could be liable for as much as $500 of the lost funds (or all of it, in extreme cases). Log on to your banking account as often as possible to keep on top of your transactions.

Contact Fraud Prevention

The first call you need to make is to the fraud prevention department at your bank. These representatives are the ones who sometimes will freeze your funds if there is suspicious activity on your account (like charges out of state). Print out a copy of the statement showing the fraudulent charge, circle the activity, and make a copy for yourself. Once on the phone with the representative, ask for the fax number so that you can fax the proof (this may not be necessary as they will have the same information, but keep a copy for your records). Tell the representative exactly how much was debited and ask him or her to freeze your account for the time being.

Patience

Most banks give themselves at least 20 days to investigate fraudulent debits. They will track down the transaction history, look at time stamps, and sometimes even call retailers for information. This process can take longer, so you will need to be patient. In the meantime, pay special attention to the account in question (daily monitoring) and report any other suspicious activity immediately. If the unauthorized debits continue, it would behoove you to close the affected account and open a new one.