Consumer complaint received 2017-02-18
Product: Prepaid card — General purpose card
Issue: Unauthorized transactions/trans. issues — 
Company: Blackhawk Network Holdings Inc. (GA)

Executive Summary On Friday XX/XX/XXXX I, XXXX, purchased a {$500.00} VISA Debit Gift Card from XXXX located at XXXX GA XXXX at XXXX EST from the main customer service kiosk. The associated VISA Debit Gift Card account number ( PAN ) is XXXX EXP XX/XX/XXXX CCV XXXX with proxy ID XXXX issued by XXXX under contract with Black Hawk Networks. 

On Friday XX/XX/XXXX I attempted to use the {$500.00} VISA Debit Gift Card referenced above to make a point of sale purchase at XXXX, GA XXXX at approximately XXXX EST, and experienced a card authorization decline at point of sale utilizing card ending in XXXX. 

Upon contacting XXXX shortly after experiencing the card authorization decline, at telephone number XXXX, I learned the following facts and reported the card as compromised due to suspected fraud Shortly upon activation of the card at XX/XX/XXXX XXXX EST, the card was registered to a " XXXX '' in zip code " XXXX '' via channels unknown, but most likely via XXXX. No IP address information was available when asked. 

It is my understanding and belief that the person registering the VISA Debit Gift Card likely at one time obtained or had an co-conspiring associate gain physical access to the instrument with details of the following data parameters required to register the card. It is my professional judgement an employee of XXXX likely may have been involved in the compromise of the instrument. 

Fraud case regarding the {$500.00} VISA Debit Gift Card ending in XXXX was filed with card issuing bank, XXXX, at telephone number XXXX with case number XXXX. 

Various individual transactions we performed between {$1.00} and {$490.00} with an aggregate total less than {$500.00} during the XXXX hour on XX/XX/XXXX at the following merchants. These transactions were unauthorized by me, the legitimate card holder. 

Dispute case was opened with XXXX on Friday XX/XX/XXXX. 

Copies of XXXX Police Department report were forwarded to XXXX on XX/XX/XXXX. 

Documentation and evidence to support claim, including proof of XXXX bank statement screen shot showing I was the legitimate purchaser of the pre-paid debit card, was provided by electronic mail to XXXX on XX/XX/XXXX. 

I was reimbursed for the fraudulent use of this card by XXXX directly on XX/XX/XXXX. 

On XX/XX/XXXX I received a letter from Blackhawk Networks indicating the investigation had been concluded and that " after further review of the cardholder 's dispute claim we have found no error has occurred. As such, your case is considered resolved and closed ''. This statement is in direct contravention of the consumer protections enumerated in Federal Reserve Board Reg E governing the use of credit / debit / pre-paid card instruments. While I have been made whole by XXXX, a separate and distinct entity from Blackhawk Networks, I find Blackhawk Network 's arbitrary and capricious closing of my dispute case and finding of " no error has occurred '' to be factually incorrect. I am bringing this matter to the attention of the US Consumer Financial Protection bureau as I am concerned other legitimate consumers may be adversely affected by Blackhawk Network 's arbitrary and capacious closing of REG E dispute claims with findings of " no error has occurred '' in direct contravention to sworn statements, facts, police reports, etc.