Consumer complaint received 2024-02-02
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: MORGAN STANLEY & CO. LLC (GA)

An unauthorized charge occurred on XX/XX/2023 in the amount of {$57.00} in my checking account. This was brought to the attention of Etrade/Morgan Stanley on XX/XX/2023. The ATM card tied to this account is in my possession. After investigation, Etrade/Morgan Stanley send me the following letter stating that the Transaction ( s ) fall outside the allowable dispute time frame.

Etrade/Morgan Stanley refused XXXX refund the unauthorized charge arguing that I did not notify them within 60 days. Etrade/Morgan Stanley refused to conduct an investigation of the unauthorized transaction. 

Reviewing the law on your website, it is clear that Etrade/Morgan Stanley is incorrect : https : //www.consumerfinance.gov/rules-policy/regulations/1005/6/ ( 3 ) Periodic statement ; timely notice not given. A consumer must report an unauthorized electronic fund transfer that appears on a periodic statement within 60 days of the financial institution 's transmittal of the statement to avoid liability for subsequent transfers. If the consumer fails to do so, the consumer 's liability shall not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the institution, and that the institution establishes would not have occurred had the consumer notified the institution within the 60-day period. When an access device is involved in the unauthorized transfer, the consumer may be liable for other amounts set forth in paragraphs ( b ) ( 1 ) or ( b ) ( 2 ) of this section, as applicable.

My Elite Team Representative told me that a transaction would need to be disputed in the first 60 days of the statement being received. This is not true as you can clearly see. This is only true for subsequent transfers. 

A consumer must report an unauthorized electronic fund transfer that appears on a periodic statement within 60 days of the financial institution 's transmittal of the statement to avoid liability for subsequent transfers. 

The unauthorized transaction occurred on XX/XX/2023 with the statement being issued on XX/XX/2023. The 60 day limit would put us at XX/XX/2023. Any unauthorized transaction after this date, i.e. XX/XX/2023 would not need to be covered by the banks liability. The bank continues to have liability for the first 60 days, no matter what. 

If the consumer fails to do so, the consumer 's liability shall not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the institution, and that the institution establishes would not have occurred had the consumer notified the institution within the XXXX period. 

As stated in the law, my liability would not exceed the amount of unauthorized transfers that occur after the close of the 60 days ( XX/XX/2023 ) and before notice to the institution ( XX/XX/2023 ). No unauthorized transactions occurred from XX/XX/2023 to XX/XX/2023. The bank is liable for the {$57.00} on XX/XX/2023.