Chase Bank

February 10, 2011

Chase Card Services EFS
PO Box 182918
Columbus, OH 43272

TWC UI Debit Card Program
PO Box 2016
Elgin, IL 60121-2016

CC: Texas Workforce Commission

In accordance with the Texas Workforce Commission Unemployment Insurance (UI) Debit Card Disclosure Statement and User Agreement (Agreement), I'm writing to report two fraudulent charges to my account.

I haven't used this card since September 10, 2010. There a charge that I was waiting to clear - to "FastMac" for $119.70. I ordered a product from them on May 30, 2010, but the product wasn't yet UL approved. So now they're ready to ship, and they say my card has been denied.

I visited the Chase website to see if there was a clue, but I couldn't log in. So I called the customer service number, and they told me the card had been canceled. I was told it was because of a $99.90 charge on Feb 2 from Lucky Software. This was a charge that I didn't make. But I do occasionally make purchases online - how would they know this was a fraudulent charge? The guy wasn't sure. He just knew that the charge had been denied, the account canceled, and online access blocked. He transferred me to the fraud department.

They asked me if I made the charge, I said no. They told me they would issue a new card. I received the replacement card on February 9. I called the toll-free number to activate it, make up a PIN, etc. I was told that the card was immediately active and ready to use. While on the phone, I requested a balance, and was told $65.40. I expected it to be $194.70. I requested a list of recent transactions. $99.90 on 2/2 and $29.40 on 12/27. The Lucky Software charge had been paid, and there was another charge from December!

I tried the website again for more information, but I still couldn't log in; using either the old or the new credit card number and PIN, or my user ID and password.

I called customer service again and talked to Tim. I was told that it's my responsibility to recognize these fraudulent charges and inform the bank in writing about such charges. So that is the purpose of this letter. I was also told that I might have to wait up to 45 days for these fraudulent charges to be reversed.

I asked why they canceled my card and lied to me that the charge had been denied. Tim had no good answer. I'm guessing that Lucky Software is shady and they recognized it as being a bad company. But in the second call, Tim told me they only canceled the card to make sure that they didn't use my account again.

The Agreement Section I, Paragraph 7 Statements: Error Resolution says:

We will provide you a monthly statement showing all account activity during the statement cycle, together with any service charges imposed...

In response to the Agreement Section II, Paragraph 10 In Case of Errors or Questions About Your Electronic Transfers:

a) Tell us your name and card number.

Ron xxxxxxxx
Card number XXXXXXXXXXXXXXXX (Previously)
Card number XXXXXXXXXXXXXXXX (Replacement)

b) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

Date: December 27, 2010 (shows online as 12/28/10)
Vendor: Your Diving Club
Amount: $29.40
I did not make this charge.

Date: February 2, 2011 (shows online as 2/4/11)
Vendor: Lucky Software
Amount: $99.90
I did not make this charge.

c) Tell us the dollar amount of the suspected error.

$29.40 and $99.90, a total of $129.30.

The address mentioned in the Agreement Section II, Paragraph 10 In Case of Errors or Questions About Your Electronic Transfers to report any errors to is in Champagne IL, not Columbus OH like Tim told me, so I'm sending this letter to both address, and also sending a copy to the Texas Workforce Commission.

If Chases's fraud department detects a problem, the first line of defense should be to deny the charge, not pay it and then cancel the card. When a good credit card company detects fraud, they attempt to protect the victim, not the criminal; and cause a hassle for the criminal, not the victim.

Please adjust these fraudent charges as soon as possible and credit my account for the full amount.

Sincerely,