Consumer complaint received 2019-06-17
Company: JPMORGAN CHASE & CO.
State: PA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Card was charged for something you did not purchase with the card

Complaint:
Please see below letter, which was signed for by a XXXX XXXX XXXX at the Chase Executive Office on XX/XX/XXXX. I have not yet received any response or even a receipt of acknowledgement from Chase Bank. 

XX/XX/XXXX Chase Executive Office XXXX XXXX XXXX XXXX, Ohio XXXX Mailstop XXXX Hello, I would like to elevate my dispute of several unauthorized charges to a higher level, as I have been told by both the Fraud Department and the Merchant Dispute Department that these charges have been deemed valid. 

Firstly, let me say that I have been a loyal Chase customer since XX/XX/XXXXand that up until this point I have been highly satisfied with your services, particularly in regard to travel benefits and rewards. I have personally referred two individuals who have opened Chase Sapphire Preferred credit accounts, and I have made posts on social media praising your company. My recent experience has dramatically and completely reversed my views on Chase Bank. 

On the evening of XX/XX/XXXX local time, I visited the XXXX XXXX, a gentlemans club in XXXX, Poland. I purchased a few drinks at the venueno more than five in total. After ordering my first drink ( house/well liquor and sparkling water ), I handed my Chase Sapphire Reserve card ( ending in XXXX, now replaced by card ending in XXXX ) to the bartender to pay. The bartender returned minutes later and stated that they were having difficulty running the card, so I then handed the bartender my Chase Sapphire Preferred card ( ending in XXXX, now replaced by card ending in XXXX ). When asked, I agreed to keep the tab open, so the bartender was in possession of both of my Chase credit cards for the duration of my visit to the XXXX XXXX. I did not see either card again until I signed a single bill before leaving the venue a few hours later. All of my communication with the XXXX XXXX staff was in English, as I do not speak any XXXX. It was apparent that English was a second language for the bartender. 

Upon waking the next morning, I checked my phone and saw a number of text messages from the Chase Fraud Department ( see attached screenshot ). The first asked if I had used my card ending in XXXX ( now replaced by card ending in XXXX ) for {$830.00} at XXXX XXXX on XX/XX/XXXX, and the second asked if I had used my card ending in XXXX ( now XXXX ) for {$1500.00} at XXXX XXXX on XX/XX/XXXX. The third and fourth text messages instructed me to call the number on the back of the card ASAP to discuss activity on my account ending in XXXX ( now XXXX ). I did not recognize the merchant XXXX XXXX XXXX, and though I had visited a venue called the XXXX XXXX the previous night, I most certainly did not spend {$1500.00} there. I immediately sent a response text, No, which was then answered by an automated text message : Thank you. Your card cant be used until we speak with you. Call to turn it on or order a new one. 

These messages reassured me that your company had protected me from any potential fraud : You detected suspicious activity and contacted me to verify that it was authorized ; I didnt respond until ten hours later, so obviously you would have blocked all attempted transactions with the merchants in question. I had only one more day in XXXX and was fully confident that I had nothing to worry about because I trusted in Chases commitment to protecting its customers from fraud and in Chases ability to do so competently. Thus, I chose to spend the time sightseeing, did not contact the authorities, and waited to check the transactions on my accounts and make the call until I was on my way home on XX/XX/XXXX. 

During the layover on my return trip, I opened the Chase Mobile App and was shocked to find the charges listed below from XX/XX/XXXX on my Sapphire Reserve card ending in XXXX ( now XXXX ) : XXXX XXXX {$1500.00} XXXX XXXX {$1500.00} XXXX XXXX {$1500.00} XXXX  XXXX  XXXX {$27.00} XXXX XXXX {$3100.00} XXXX  XXXX  XXXX {$830.00} XXXX XXXX {$3100.00}  XXXX  XXXX  XXXX {$1600.00} On my Sapphire Preferred card ending in XXXX ( now XXXX ), I found the following charge from XX/XX/XXXX: XXXX XXXX {$1500.00} I did not recognize the merchant name XXXX XXXX  XXXX in any capacity, but drew the obvious conclusion that this entity was affiliated with the XXXX XXXX, as these unauthorized charges posted on my account the same day as the unauthorized charges labeled XXXX XXXX. 

When I phoned Chase, my call was received by a non-native English speaker who struggled to understand my account of what had transpired. I attempted to explain to him that both credit cards were in my possession at present, that I did visit the XXXX XXXX but did not make any purchases there in an amount greater than {$30.00} USD at most, and that I did not recognize the merchant XXXX XXXX  XXXX at all. I did not recall the exact amount that I had spent at the XXXX XXXX and had not retained my receipts, so I chose to dispute all charges listed above with the exception of the single charge in the amount of {$27.00}. Despite the fact that this particular charge was attributed to a merchant I did not recognize ( XXXX XXXX XXXX ), it was the only charge from the evening in an amount that could possibly correspond to the actual cost of my purchase, and as I have previously stated, I assumed that the two merchants must be one and the same. The individual with whom I spoke expressed a great deal of uncertainty as to which department should handle my dispute, but ultimately decided to pass the issue along to the Fraud Department. I canceled and requested replacements for both cards. 

Soon after my return home, I received two letters from Chase via USPS. The letters were dated XX/XX/XXXX and indicated that the charges I was disputing ( on both accounts and with both merchants ) had been reapplied to my account for the following reason : You notified us that this transaction is valid. I was thoroughly confused and quite unsettled by this letter, as I had not then and have not at any point since stated that these transactions were authorized by me, and I most certainly did not notify you of such. I have maintained from my first contact with Chase in regard to these charges that they are ABSOLUTELY NOT AUTHORIZED. I was already quite troubled that your Fraud Department had allowed the charges to be processed in the first placewhats the point of sending a text message asking if I had authorized a highly atypical transaction if youre going to approve the transaction despite receiving no response from me?!? Being told at this point that I had allegedly indicated these charges were legitimate completely eliminated any remaining confidence that I may have had in the Chase Fraud Department. I contacted Chase to inform the Fraud Department that I had not in fact notified you that the charges were valid, and to reinstate the disputes immediately. 

After months of communication with Chase in regard to this issue, it is now my understanding that any dispute involving a merchant with whom the customer acknowledges making even one legitimate transaction does not meet your definition of fraud. Additionally, I was told that the incident does not qualify as fraud because the credit cards were not lost or stolen, but were in my possession and were proven by the merchant to be chip transactions ( meaning that the credit card was physically inserted into a chip reader ). It is inaccurate to say that the cards were in my possession ; as I previously stated, the credit cards were in the physical possession of the bartender/XXXX  XXXX employees for the entire duration of my visit. It is entirely possible that chip transactions were made without my knowledge or authorization. 

I received letters dated XX/XX/XXXX, XX/XX/XXXX, and XXXX XXXX stating that all disputed charges with both merchants on my Sapphire Reserve card ( XXXX/XXXX ) had been determined to be legitimate. When I called to contest this result, the Chase employee that I spoke to explained that the situation did not constitute your definition of fraud due to the reasons listed in the above paragraph. She suggested that I instead bring the issue to the Merchant Dispute Department. 

When I called the Merchant Dispute Department on XX/XX/XXXX, I was finally informed that the form I had previously been asked to fill out providing further information about the incident had been available in the Statements and Documents section of your website since XX/XX/XXXX. Members of the Fraud Department had told me that this form would be sent via USPS, and I had contacted them repeatedly stating that I had not received it. Additionally, I saw for the first time that the merchants response to my disputes had been posted on the website on XX/XX/XXXX. No one from the Fraud Department had provided me access to this form or merchant response, and this was the first time I became aware that either was available. I promptly returned the form and reviewed all information provided by the merchant. For your reference, I have attached my dispute form as well as a copy of the merchant response document. 

Upon reading this document, I found that the merchants response addressed only the charges to the Sapphire Reserve card ( XXXX/XXXX ) listed as XXXX XXXX  XXXX, and did not include a receipts for any of the fraudulent charges listed as XXXX XXXX. The merchant had sent copies of only three receipts with signatures : Receipt number XXXX in the amount of {$830.00} USD/XXXX  PLN ( pages 5 & 12 ) Receipt number XXXX in the amount of {$1600.00} USD/XXXX PLN ( page 8 ) Receipt number XXXX in the amount of {$27.00} USD/XXXX PLN ( page 11 ) Of these three receipts, only the one on page 11 is shown in an image that is bright, clear, and fully legible. To the left of it is a second documentunlike the first three receipts, this document lacks a signature and at the top reads XXXX XXXX XXXX. A quick XXXX search shows that this translates to Fiscal Copy Paragon, so this document appears to be the merchants itemized copy that relates to the customer copy shown on the rightin other words, both documents refer to a single transaction in the amount of {$29.00} USD/XXXX PLN. 

Two other documents appear in the same format ( unsigned and titled XXXX XXXX XXXX ). One is on page 6 and repeated on page 13 in the amount of {$830.00} USD/XXXX PLN, and the other is on page 7 in the amount of {$1600.00} USD/XXXX  PLN. Of all the images provided by the merchant, these two are the darkest, the most blurry, and the least legible. Would you disagree that it seems suspect that the merchant has been able to provide clear documentation, including a legible itemized receipt, for the {$27.00} USD transaction, but not for the transactions I am disputing? 
I am unable to locate in the merchants response receipts for any of the six transactions associated with XXXX XXXX ( five on the Sapphire Reserve card XXXX/XXXX, and one on the Sapphire Preferred card XXXX/XXXX ). I have to assume that the merchant did not provide these receipts to Chase, or that Chase has not offered me access to them. Clearly, the merchant has not proven that the XXXX XXXX charges are authorized ( no documentation provided at all ), and has also not reasonably proven that the disputed XXXX XXXX  XXXX charges are authorized ( provided documentation is dark and not fully legible ). 
Upon further examination of the itemized receipts, I found that the same named item is listed for different amounts on each of the fiscal copies. On the fiscal copy on page 11, XXXX XXXX XXXX XXXX  ( XXXX translates this phrase as entrance to the artistic use ) is listed at {$29.00} USD/ XXXX PLN. On the fiscal copy provided on pages 6 and 13, this same individual item appears to cost {$830.00} USD/XXXX PLN. On the fiscal copy on page 7, the same item is again listed at a cost of either {$1000.00} USD/XXXX PLN or {$1200.00} USD/XXXX PLNit is impossible to discern due to the dark and illegible receipt. The fiscal copy on page 7 also includes two other illegible items, one in the amount of XXXX or XXXX PLN, and the other in the amount of XXXX PLN, creating a total of {$1600.00} USD/XXXX  PLN. This clearly represents fraud or an error, as there is no legitimate reason that the same single product or service purchased at the same venue on the same evening could possibly range in price from {$29.00} to {$1200.00} USD. 

After being given access to the merchants suspicious response, I took it upon myself to further research the XXXX XXXX. I came across an episode of a XXXX   documentary television series called Scammers Abroad ( in XXXX, XXXX in XXXX   XXXX ) that includes a segment filmed at the venue. I urge you to view this segment and take it into consideration when reviewing my dispute. The XXXX XXXX is featured in Season 6, Episode 1 of the series, which can be viewed at https : XXXX XXXX XXXX. Coverage of the XXXX XXXX begins at XXXX, when the host/narrator approaches the venue under the pretense of having a beer. His encounter with the merchant is filmed by hidden camera. First, we see a passerby warn the host that he should go to another club due to the venues poor reputation. An employee of the XXXX XXXX insists that this man lies, and the host enters the venue and orders drinks. At XXXX and again at XXXX, we see the man confirming with a female employee that the amount of his total bill is XXXX PLN. This employee then attempts to run the hosts credit card using a handheld chip reader, and at XXXX tells him that there is a bad connection and asks him to try once more ( XXXX ). The card is declined again, so the host pays in cash and leaves the venue. At XXXX he shows the viewer the receipts from the declined transactions and finds that for the second attempted transaction, the employee has added a zero to the end of the number, thus attempting to charge him XXXX PLN/XXXX EUR rather than the XXXX PLN/XXXX EUR that she had verbally confirmed as his total. I have attached screenshots of both receipts shown in this video ( the first at XXXX and the second at XXXX ). In the first screenshot, you can see that the receipt is undeniably from the merchant that I visitedthe top line reads XXXX XXXX  and the second shows the address of the XXXX XXXX, XXXX. XXXX. XXXX XXXX. At XXXX the host returns to confront the merchant, and a sign reading XXXX XXXX can be seen as he enters the venue at XXXX ( see attached screenshot ). An English exchange follows in which the host tells a female employee, I called my bank, and you know what they said? We rejected this because this place is on our blacklist. They do it all the time. 

I can only assume that Chase Bank has access to the same blacklist. 

I have also attached for your consideration over thirty negative reviews of the XXXX XXXX found on XXXX and XXXX, twenty-two of which specifically mention fraud, scam, or robbery. I have highlighted the relevant phrases for your convenience. Additionally, I have included information from two different sources ( XXXX  and XXXX ) regarding the general cost of living in XXXX and listing the average price of a cocktail as XXXX PLN ( {$3.00} USD ). Please also note that the venue is not one that would be described as upscale. 

As an individual who has been your loyal client for years, I implore you to reevaluate my dispute with genuine attention, humanity, and logic. I am not a person who spends {$16000.00} at an entertainment venue in a single evening, and this should be apparent from my credit and banking history. Prior to the charges in question, I had only made a total of five transactions in an amount greater than {$500.00} on either card in the entire history of both accounts, and none of those transactions were at an entertainment venue or in an amount greater than {$1100.00}. 

These unauthorized charges have been significantly detrimental to my credit score ( which at one point was above 800 ) in particular, the charges on the Sapphire Reserve card ( XXXX/XXXX  ) that immediately upon posting put the balance roughly {$5000.00} over my {$20000.00} credit limit. I question why your company would authorize any charges that would cause a customer account to surpass its total credit limit by a full 25 %, especially when the transactions were highly atypical and you did not receive any confirmation from the customer that they were authorized. It is apparent from the text messages I received from Chase Fraud Protection at XXXX XXXX I have to admit that in this situation, I feel that I am both a victim of the XXXX XXXX in XXXX and a victim of Chase Bank at home in America. 

I am optimistically looking forward to your review of my dispute, and trust that you will consider the case with common sense and thorough attention. 

Sincerely yours, XXXX XXXX

Company response to consumer: Closed with explanation