Consumer complaint received 2021-07-21
Company: PEOPLE'S UNITED BANK, NATIONAL ASSOCIATION
State: VT
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
This is a disputed with Peoples United Bank, and with it Mastercard, who issued my debit card which was fraudulently charged. 

On Thursday, XX/XX/XXXX at XXXX EST I received a Fraud Alert Text from Peoples United Bank asking about fraudulent charges. 

I immediately responded to that text that the charges were fraudulent, and also called a bank representative to freeze my account and de-activate my debit card. 

Over the course of the next week, we worked with the bank to file an in-person affidavit ( signed and notarized at the bank ), detailing the fraudulent charges totaling {$3400.00}, plus overdraft fees. In addition, we spent many hours on the phone with the bank discussing each card ( placed via a XXXX account ), and how to reverse these charges. 

These charges were : {$790.00} on XX/XX/XXXX {$310.00} on XX/XX/XXXX {$780.00} on XX/XX/XXXX {$780.00} on XX/XX/XXXX {$780.00} on XX/XX/XXXX Total of {$3400.00} Each charge was placed via a XXXX account ( the same account ). These charges all hit 1 day after I had locked my account. 

The bank then charged me 5 {$37.00} overdraft charges, as the first charge of {$790.00} put my account into overdraft status. This totals {$180.00} in overdraft fees. 

I suspected that my card was hacked through use at a Merchant ( XXXX XXXX  XXXX ) who notified me on Friday XX/XX/XXXX, that they had learned XXXX had been injected on their website, and that my data was effected. This is likely the root cause of the data breach. Unfortunately, XXXX XXXX failed to notify me promptly of the issue when they learned of it ( XX/XX/XXXX ). 

This documentation of a data breach was submitted to the bank along with my affidavit of fraudulent charges. It was also my understanding that XXXX XXXX reached out directly to Peoples United Bank to alert them to the issue. 

On XX/XX/XXXX, the bank issued provisional refunds to my accounts for all charges, and all overdraft fees, as we had satisfied all requirements of documentation. 

On XX/XX/XXXX, I received a email that my fraud claim was denied, stating : that " The Bank has determined after completion of its investigation that it is not liable for your claim. The provisional credit that you received in the amount of {$3400.00} will be deducted from your account in 7 business days. '' Their response to the issue took place over 45 business days after receiving the notarized affidavit, which is a violation of the law : The bank or credit union must then resolve the issue in 45 days, unless the disputed transactions were conducted in a foreign country, were conducted within 30 days of account opening, or were debit card point-of-sale purchases. 

I'm currently negotiating with Peoples United Bank to resolve this issue, but was initially told their decision was final. We have documented every step of the issue, and provided complete documentation and made all the required steps with Peoples United Bank. The fact that they are denying this fraudulent claim, is in fact fraud. I had frozen my account before these transactions posted, and followed every step of the process. 

In effect, my account was robbed by someone to the tune of {$3400.00} and the bank is denying it, and going against the consumer protection. 

Additionally, these charges were placed against a MasterCard debit card, which guarantees that I'm protected against fraud.

XXXX XXXX XXXX " When you use your Mastercard, you're protected against fraud.

Have peace of mind knowing that the financial institution that issued your Mastercard won't hold you responsible for unauthorized transactions. As a Mastercard cardholder, Zero Liability applies to your purchases made in the store, over the telephone, online, or via a mobile device and ATM transactions. As a cardholder, you will not be held responsible for unauthorized transactions if : You have used reasonable care in protecting your card from loss or theft ; and You promptly reported loss or theft to your financial institution. 
If you believe there has been unauthorized use of your account and you meet the conditions above, rest easy knowing you have the protection of Mastercards Zero Liability promise. For additional protections with respect to unauthorized transactions, please contact your bank or credit union. Note : Zero Liability does not apply to the following Mastercard payment cards : commercial cards, or unregistered prepaid cards, such as gift cards. '' As such, Peoples United Bank is failing to uphold the conditions stated as part of my contract, which is also a breach of laws, and of contract. 

In total, Peoples United Bank is attempting to deny a valid, and perfectly documented fraud complaint, which amounts to theft of my personal money.

Company response to consumer: Closed with explanation