Never give your PIN number to anyone. Ever.
Derek Wilairat learned this rule the hard way on a recent trip to Rome. I’m sharing his heartbreaking story as a warning to readers. But I think you’ll find the resolution just as interesting.
On June 14th, 2008, on a deserted street in Rome, two men approached me claiming to be undercover police officers. They demanded my wallet to “check my identification” and they demanded the PIN for my debit card so that they could “check my identity” with my bank.
Despite my obvious suspicions, my instinct was to play along. They were threatening men — mafia-types — and the fact that they claimed to be police officers, and that I was in a foreign country, made it that much harder to resist their demands. I surrendered my PIN only because I felt that to not do so would be putting myself in danger.
They handed back my wallet, minus my debit card. I called WaMu right away to cancel the card, but by then the thieves had already withdrawn €250 from an ATM. Later that day, I filed a claim for an unauthorized withdrawal, explaining the whole story in detail to a sympathetic customer service agent.
Soon after, I received a letter from Alex Wilson of WaMu Debit Card Claims that said that my claim was denied because I “gave the person who made the transaction permission to use the debit card and PIN.” I called the claims department again and spoke to another sympathetic agent who said she would reopen my claim.
Later, when I hadn’t heard back, I called claims again, and was informed my claim had been denied a second time.
Then, following the advice of the manager of my local WaMu branch, I wrote a letter to WaMu Executive Offices. The case was considered, and denied a third time.
I wrote back, arguing that according to the Electronic Fund Transfer Act, I should not be held liable for more than $50 of unauthorized use, since I reported my Debit Card stolen within two business days after I realized the card was missing. I received a reply which denied my claim for the fourth time, stating that “the DCS (Debit Card Services) department deemed your transaction as authorized because you gave your PIN to a third party. Therefore the $50 limit does not apply.” This last letter was dated December 19, 2008.
To be confronted by two men claiming to be police officers on a deserted street in a foreign country is clearly a threatening situation. I did not give my PIN willingly; I was coerced into doing so. Also, the actual card, used along with the PIN for the withdrawal, was just flat-out stolen.
I contacted Chase, which now owns Washington Mutual. Tom Kelly, a spokesman for the bank, responded with a terse denial.
We checked out the debit card issue raised by your reader. Because the customer did not file a police report, we will not reimburse the loss.
How interesting.
I think if the customer service agent Wilairat had spoken with the morning after the incident had asked him to file a police report, he probably would have. Although I can certainly understand why filing a report with the authorities wasn’t the first thought that came to his mind. After all, the thieves had claimed to be police officers.
What’s frustrating is that Washington Mutual (and later Chase) gave him numerous reasons why it denied his claim. If they’re going to deny his claim, is it too much to ask them to stick to the script?
Needless to say, you should never, never, ever give anyone your PIN number.
Wilairat must now decide what to do next. He has two options as far as I can tell: accept the decision or go to small claims court to recover his money.
Update (2/11): Just got an update from Wilairat …
I received a letter from Washington Mutual. They argue that the incident is not governed by the EFTA, and they continue to deny the claim, but even so, they are refunding the full amount of the disputed withdrawal in the interest of customer service.
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How about you just give them the wrong PIN? I mean really, two guys come up to you in Rome – a city notorious for pickpockets and scamming tourists – and claim to be undercover police. Well, they just blew their undercover status, didn’t they? Despite what some folks might think, Italy isn’t some third-world backwater where the police are all working for the local drug lord. The basic rules still apply. I don’t think – correct me if I’m wrong – that the police go around harassing tourists for their “papers” anymore. You got taken. Use it as a lesson; at around $300, a relatively cheap lesson, too.
Not much sympathy for this guy. This is one of the oldest scams in the book.
That is a fairly inexpensive lesson, if you made it far enough in life to be a solo-tourist in Europe without the basic education necessary to aleviate that situation – then 250 Euros is cheaper than a semester at the Community College’s Real Life Skills class.
Skill 1: Don’t give out your PIN
Skill 2: If you must, give the wrong PIN (and run before they figure that out)
Skill 3: If you’re robbed, call the police
Why not give the wrong pin number??? And the fact is that something similar happened to me in Budapest. As I had two men approached me (in suits and all) and asked for my ID, I did tel ltham that I rather see thier ID’s first before giving out any info. When they refused, I did tell them that I would call the police myself, got my cell phone out, and would call the police to verify their identities… it was very blunt of me, but as it was happening in daylight in a somehow busy area I took a chance. When I got my cell phone out and started dialing some made up number, they said “it is fine” and walked away. I knew I took a chance but it did work… phew!
It’s unfortunate this happened to Derek, and even more unfortunate that WaMu/Chase refused to back him up. However, I agree with the other commenters. Rome is full of con artists, but so is every other major metropolitian city.
1) Why was he on a deserted street? Rome is crowded, and the ONLY time I’ve ever been on a street that was even somewhat empty was at 7am on a Sunday morning, and there were still cafes and such around, with people inside.
2) I carry my important items: passport, debit card, etc. in a money belt. No wallet. This prevents pickpocketing as well as making it more difficult for “police” to demand identification/debit cards.
3) While I can sympathize with deciding to play along with ‘threatening’ types, the fact that these men tried guile (claiming to be police) rather than outright mugging him–which is rare in Rome–means that if Derek had stood his ground a bit better, they likely would have given up. At the very least, he could have claimed that he didn’t have id/debit card (especially if those items were safely tucked away in his money belt) and asked to be escorted to his hotel to ‘retrieve’ the items. At the very least, true police officers would have taken him to the police station.
4) If all else fails, as others have said, why not give them a false PIN number?
Overall, I agree that this was a relatively inexpensive lesson. They did not steal Derek’s passport which would have been an absolute nightmare. Derek could have done more to protect himself, ending with filing a police report if all else failed. Given Italy’s byzantine bureaucracy, he would probably not get much more than a copy of the report by way of assistance, but it sounds like this was the key component to getting WaMu/Chase to help him out.
When you travel abroad use common sense!!!!!!
Carrying your ID and Debit, credit cards in seperate places would also be a good idea. Telling someone that you have your debit, credit card back at the hotel in a safe would be a good line to use.
One thing I’ve learned from reading posts here is that no one should ever come here looking for any kind words, support of any kind, a little consideration or any other stroking on any level. I have read some of the most hate-filled, foul-language responses that go back and forth and back and forth on this blog. Most of you, practically all of you are all so smug in your judgments of others…you act like sharks in the water following the trail of blood, looking for someone who has experienced some unfortunate situation, waiting to pounce…and so many of you are executives, lawyers, etc…deep, deep shame on all of you…I hope someday you don’t find yourselves in a situation that terrifies you to your soul and your simple brain misfires and do “the wrong thing” only to regret it 5 minutes later…or fear for your life and then scrape up some excuse that gets you out of harm’s way…everyone on this blog is such a genius…just ask them..Chris..I’m done here…I’ll write you personally in the future if I need some help…
While Derek certainly is wiser for the experience, isn’t the bigger picture that WaMu/Chase isn’t wiser as they will most likely lose a customer over $250 (I subtracted off the $50 limit attributed to the customer)? I certainly would switch banks based on that situation.
All good suggestions, sounds to me like Derek might be a new traveler. I agree with giving out a wrong pin#, after all they weren’t dragging him to the bank..BUT why oh why didn’t he report this to the police in Rome. At the very least, this would verfiy his story, and also he might have been able to make a claim against his homeowners insurance, or travel insurance, but you always need a police report. Believe it or not the Rome police are actually helpful. I once dropped my neck pouch in the domo in the 80’s cash, passport, train tix etc-everything in there.. When I discovered it missing, I went to the nearest police station, frantic. They called the domo for me, and walked me over there so I wouldn’t get lost. I got everything back and no one would take a reward. I’m not Italian, don’t speak Italian, don’t look Italian. Derek got a cheap lesson, reading lonely planet might also be helpful for him.
This guy did not “give” his PIN number to anybody– he was mugged. Therefore the bank should absolutely cover his loss.
I’m going to have to strongly disagree with the majority of the posters. None of us where there, nor do we neessarily understand the gravity of the situation. Derek may indeed have been very afraid for his life. Consider that by giving the men the correct PIN, he may very well have saved his life for 250E.
I say that under the circumstances, if Derek felt that his safety or life was in danger, why would you gamble that for a couple of Euros?
And WAMU’s response was abominable. I hope he goes to small claims court.
Everyone is looking at this through Derek’s point of view, but try looking at it from the bank’s viewpoint. If I decide to blow through 250 euros while in Rome and realize that was more than I should have spent, I could call my bank and give the same story that Derek gave. Maybe the bank told him to file a police report and in the shock of being robbed he forgot. Or maybe the bank forgot to tell him that.
But now the bank is reviewing his claim and there is nothing to back up his story that this was stolen money. He could have given the debit card to a friend or he could have made the withdrawal himself (no where in the story does it mention any pictures from the ATM of who used the card). There is no police report to show that a theft was noted or investigated. So I have to agree with the bank and deny the claim. Derek was lucky to have gotten off as cheap as he did.
As a frequent traveller (albeit never mugged), here’s my mugger bait wallet kit.
Phone your bank and credit card company and report your current debit card and credit card lost – ask for each to be flagged and reissued.
Wait for replacement cards.
Get a new wallet and put your working cards, licenses, cash etc in the new wallet. When travelling this wallet goes in your money belt, tucked away out of site.
Put the canceled cards and a days cash in your old wallet, with some receipts and typical wallet filler garbage. This goes in your jacket pocket.
If mugged, you’ve got a perfectly good wallet to give away, one that looks real to the mugger.
If you tell the mugger you don’t have a wallet, you’ll take a beating. If you’ve got mugger bait that they aren’t going to see is fake, you can drop the wallet.
This has worked for colleagues.
Richard C – The problem that I have – I can’t speak for others – is not that Derek was the “naive” traveler and “lost his head” in the situation. That’s happened to me countless times and I bet it’s happened to most of the posters here. No, that is quite forgivable. What’s not so forgivable is that Derek, after having been fleeced by the nasty foreign con men, turns to someone else to make it right. It’s not up to the bank, the Government, the airline, whoever, to cover my a** when I get scammed by nefarious individuals who prey on the innocent. Buck up, take the hit, learn a lesson, and move on. Because who eventually pays for your problem if the bank reimburses you? The other customers of the bank in the form of higher interest rates or increased fees and charges.
I’m curious about where WAMU/Chase draws the line on what a “mugging” is. In my town a woman was recently threatened at gun point to drive a man to an ATM and use her card to withdraw money. Did she “technically” give her pin number to the crook? Did she “technically” authorize the withdrawal?
Sure, in the woman’s case a gun was used, but what if she had been threatened with a knife, a beating, or rape? I would hate to hear them argue that she “willingly” withdrew money from her account to avoid the consequences of standing her ground.
Go to small claims court. It will cost the bank more money to defend the case than it would to setlle the matter.
To respond to Carver’s point, I certainly agree that Derek’s life and safety are worth more than a few hundred euro. However, my understanding of the incident (which may be incorrect/incomplete) is that they took his debit card and PIN number and left. Thus, giving the wrong PIN would not put him in any danger as he’d be long gone by the time the crooks realized it.
For those who are unfamiliar with Rome, the most likely circumstance is this was a scam and not a mugging. There did not appear to be any weapons involved. This is not to say that Derek didn’t feel threatened, he certainly did.
But bottom line, the place where Derek is at fault is in not filing a police report. In the example Denise cites, 1) hopefully the woman filed a police report and 2) since she went to the ATM with the robber, there should be surveillence video showing it was coerced. As I understand it, Derek has no evidence to support his claim of what happened. While I completely believe it did happen just as he described, the bank has no obligation without actual proof.
I really like the advice above about putting together a mugger bait wallet. This is the kind of advice that a site like this should have.
As for the story. I have to agree with one of the other comments. Without a police report, how does the bank know that he just didn’t withdraw the money and then call to cancel the card? Would your insurance company replace your “stolen” car without a police report? Your laptop? Bicycle? Had Derek filed a police report, I would bet that WaMu would have deposited the all of the money back to his account. Travelers should also be taught that when traveling in a foreign country, and something bad happens to you, this is what the US Embassy is for. They would have likely assisted him in reporting the theft to the police and getting a police report for his bank.
Let’s hope that some other novice travelers have learned from Derek’s mistake by reading this.
@Liz: I agree that the best action the Roman traveler could have taken would have been to go to the police and file a report (the local woman I referred to did). The hotel he was staying at would probably have helped him contact honest-to-goodness officers of the law so he could back up his claim. CYA is the generally accepted protocol when dealing with any corporate entity. Someone backed into my parked car one night and took off without leaving a note. Before calling my insurance company I called the police to make a report so the insurance would believe me when I said that I was not responsible for the damage. Then again, I’ve been held at gunpoint and had my well-being threatened by thugs, so I understand that in the heat of the moment one might not think as clearly as they wish they had in retrospect. The fact that the traveler was “with it” enough to cancel the card shortly afterward is the only thing that draws a flag as far as I’m concerned.
My thoughts were strictly to the point that the bank is deciding what is or isn’t theft. In my layman’s understanding of American law, no actual violence has to be involved for a crime to have occurred: if you threaten or trick someone into giving you something under false pretenses, it’s still a crime. I don’t know about Italian law, but I can’t imagine that it is too far off in its interpretation of theft. So where will the banks draw the line?
Not all crooks are dumb… some know not to stand where the ATM camera can see them while they make the victim withdraw money. Also, not all ATM in all countries have cameras, and those that do sometimes don’t work properly. Add to that the fact that the cameras are usually pretty easy to locate and cover and you’ve got a mess of reasons why video testimony may not be as reliable as it seems.
I would just hate to be on the receiving end of the bank’s argument, especially if I’ve just been swindled. Victimized not only by the crooks, but by the agencies I put my trust in, as well.
Wow, So happy that all of you “why didn’t he…?” people have never had the experience of being intimidated and scared while being robbed in a place unfamiliar to you. Of course people, when they have the presence of mind to do so, would give the wrong PIN. I would do that myself in the hypothetical. Having thankfully never had to be in that situation I do not know what would come out of my mouth.
I tend to think any of us would come up with similar results because it is a stressful, fear inducing situation and that is not the time that our brains function in their best capacity.
For all of you judementals out there, take it easy and pray that you never have to know what it feels like.
WAMU could have recognized that this was extraordinary circumstances and maybe helped one of their customers through a bad situation.
Just my two cents.
Actually, since it was a PIN transaction, Derek is liable for it per the agreements he signed. If it was a signature transaction, that is what is covered over $50.
Also, what does bank policies have to do with a travel blog? It doesn’t matter whether the problem happens in China or in his home town. Elliot, you should have referred this to a personal finance specialist who understands the bank policies.
Hindsight is 20/20 as they say. It’s easy for us to say “Why didn’t you give out a wrong PIN?” Of course that makes plenty sense. But Derek was scared and alone. And for those who think Rome is always crowded–my husband and I were just there last October, and trust me. If you’re staying in a smaller locally-owned inn off of the main streets, it is VERY easy to find yourself alone in a dark cobblestone alley.
Let’s face it: Derek was a victim. And in that moment when Derek was scared witless and worrying about whether they would beat him up and leave him to die, he did the first thing that came to mind; he was honest and gave his real PIN. There was no way he would know whether one of them would go and check an ATM while the other held him hostage. Derek didn’t know that!
Derek was smart enough to call WaMu right away, but I do have to agree with others that by that point, there were a lot of other things to do. In fact, probably the most important thing someone in Derek’s situtation could have done was to have immediately contacted the local police. If he wasn’t comfortable doing it on the spot, I would’ve done so immediately upon returning to my hotel. Hotel staff generally speak English, and I’m sure they would’ve been glad to help.
Imagine if this were to have happened back home. I suspect the bank would’ve responded the same and demanded a police report. It is quite fortunate that Derek was not physically injured in this confrontation, but that doesn’t mean he shouldn’t have filed a police report.
At the very least, I would have contacted the U.S. embassy. They may not have written up their own “police report” but they would have been able to provide suggestions for Derek.
What a hard lesson.
No need to be so hard on him, though. It was in his mind a life-or-death situation in a foreign country. If there ever IS a next time, I’m sure he’ll know what to do. Here’s to hoping it won’t happen again.
Jacqueline wrote: “Also, what does bank policies have to do with a travel blog?”
Actually I think it’s quite appropriate. People need to know that there are security issues while traveling abroad that have to do with their money and bank accounts. Most travel books have a chapter on security/safety and how to handle money (including dealing with your bank).
@ Richard C, Carver, RdKatym, Lani Teshima & Anyone else who actually understands that this man was a victim
Well said.
Richard for those of us who write what you may think are not kind words to Derek, are really words of wisdom from us. If someone is going to travel abroad they need to know what to expect weather good or bad, Most of us have had bad experiences and learned from them. I am sure Derek has learned from his experience.
An expensive less for this young man. However it may be some comfort to him that we have learned not to offer too many details to the bank when reporting the theft of a debit card. Simply report it as stolen and leave it at that.
While I would have filed a police report, and have on two occasions when things of value – a computer and a camera- were stolen from hotel room safes in Mexico and Italy that can be a very time consuming and odd exercise. In Mexico I had to pay for the photocopies of the report, not simply my copy of the report, but the copies for the police , the public prosecutor and the tourism bureau. Thirty cents but a bit unusual when used to dealing the the police in the States.
Derek, I am sorry you had a bad experience in Italy, I would certainly send a letter to the local police there now so they may be aware of one more person being scammed in that manner. However now you know how supportive your bank is as well and perhaps the lessons you – and we all – have learned from your experience will prove valuable enough to offest your loss.
@ Judy
If you have been in a situation like Mr. Wilairat’s and were able to keep your head I commend you.
However, if you haven’t, all the advice in the world doesn’t help. This isn’t about “having an experience,” this is about a man who was the victim of a crime. No one should walk around feeling as though they need to be prepared for constant danger, they’d go insane. Yes Mr. Wilairat could have told these men that he didn’t have anything on him, and then they could have beaten him half to death and stolen his wallet anyway.
He felt he was in danger and he did what he felt was required to protect himself. He did make a mistake in not informing the police, and I do understand the bank’s position in needing some documentation of a crime…however the poor man continues to feel victimized and I think that the bank should realize that a scammer wouldn’t go through the hassle of repeated claims, especially if Mr. Wilairat has been a good customer.
@Stephen F
I’ll keep those in mind, Stephen. Thanks!
Everyone keeps talking about a small claims suit – but, since Derek doesn’t really have any legal basis to stand on, the bank can counter-sue to recoup attorney fees.
And for all WaMu knows, Derek met a pretty girl, gave her the debit card and pin willingly, then had remorse when she disappeared with it. Does WaMu have the transaction photos from the ATM?
Everyone keeps talking about a small claims suit – but, since Derek doesn’t really have any legal basis to stand on, the bank can counter-sue to recoup attorney fees.
And for all WaMu knows, Derek met a pretty girl, gave her the debit card and pin willingly, then had remorse when she disappeared with it. Does WaMu have the transaction photos from the ATM? What was the actual timing between the ATM withdrawal and Derek’s call to report it was lost? 10 minutes, 10 hours? Did he keep the pin written somewhere in his wallet to help him remember it? There are a lot of variables to consider.
I often see the suggestion for small claims court as an alternative means on this web site. However, even if they the party you are suing does not show up, you win by default. But my experience is that even if you win, there are no teeth to get the person/company to pay the amount due.
I have won twice in small claims court in CA and never collected a dime. The court was not real helpful in enforcing their ruling either.
Lianne wrote….”No one should walk around feeling as though they need to be prepared for constant danger, they’d go insane”
Insane you say Lianne? Hmmm! I think it would drive me insane NOT to be prepared for constant danger! Because I’m a realist!
I would also call that taking care of one’s self! Or being self sufficiant. And no Lianne, people such as my self and most of the people I know are not going insane from being aware of one’s surondings…It keeps people alive!
By the way Derek, I’m sorry you lost $300…But like others have said consider your self lucky that’s all those scum bags got…And think of it as a learning experiance.
@Karl
I lived as a single female college student in New York City for 4 years. Two of those years were spent on the edge of Spanish Harlem. During that time I successfully fended off 2 purse snatchings, one in broad daylight. I know a thing or two about situational awareness.
However I did not then, nor do I now, spend every waking moment thinking that someone is out to get me. That’s called paranoia and is recognized as a mental disease.
My point was that no one *deserves* to be the vicitim of a crime, no matter how ill-prepared they are, the way that some people on this blog seemed to be insinuating. As the crime was occuring, Mr. Wilairat *was* aware of his surroundings and acted in the way that would get him out of the situation in the way that he believed would cause him the most amount of physical harm. That should be commended.
@RYAN
The Courts do not consider themselves collections agencies. That being said, it can be a real beast to collect money from an individual. However, collecting from a bonafide business is usually fairly easiy by comparison.
Lianne,
You have done a 180 on your prior position. And to bolster your position your now bringing in an extreme…being a …”mental illness scenario!”
Again I say…Wow!
I see I will not win this with a person that does not debate fairly….And frankly I have better things to do with my limited time here!
But the fact still remains that Derek could of, and should have done a few things different to protect himself before he was taken advantage of, and after to cover his butt.
And the fact that Derek put himself in the situation of being a foreigner on an un-inhabited dark street in a place that is known for problems was his first…And not getting a police report to cover his butt, being the last.
Again, I would hope Derek and the readers of this blog would come away with more than the scenario that “He did not deserve what he got”.. That is just blaming others for a situation Derek should have never let himself get into!
And again I say…This was an inexpensive learning experience. Get over it!
@Karl
I cannot agree that Derek is blaming others. He was the victim of a crime. By definition that makes it the fault of the criminals, not Derek.
I realize that you don’t have alot of sympathy for Derek, but i would remind you that at some point we were all novice travelers. As such, I would ask for some kindness towards this poor kid.
Not everyone knows to get a police report, especially some college student in a foreign country.I remember getting my license plate stolen when I was 21. I only made a police report because my parents told me I needed to. Clueless kids. Give them a break.
Richard C: Get over yourself!
I have a great deal of sympathy for anyone who is the victim of a crime while travelling. It is a horrifying experience that no one should have to go through. No reasonable person would say that Derek “got what he deserved.”
That being said, I believe (as I have stated in previous posts) that if you are old enough to travel alone, especially to a big city or foreign country, then you have the responsibility to do a little research before you leave. Are there areas of the city that are more prone to crime than others? Are there schemes that are more prevalent in a particular city/country? If anyone, especially a college student alone, is travelling to a foreign country, he needs to have the phone number and address for the American Embassy with him at all times. If he is afraid to go to the police after a crime is committed, he should be able to talk to someone at his hotel/hostel who can assist him. Not wanting to appear stupid to strangers in a foreign country (not saying that is what happened here, but if it were my brother, that might prevent him from talking to authorities) is not an excuse for failing to act.
Again, this was a horrible experience for Derek and hopefully someone will read this post and know what to do should they be caught in the same situation. Most of the comments on this site are not meant to place blame on the victim, but to help other travellers who might not otherwise think about how to handle themselves when a situation arises. However, I can’t blame the bank for not reimbursing him the money without any documentation to back up his story.
Karl…
I fail to see where Lianne did a 180. She said she doesn’t walk down the street assuming she may be attacked at any second, even though she has been attacked before.
From your previous post you made it sound like you feel the need to believe that every street you walk down may be dangerous. That’s your perogative. I hope that you don’t accidently “defend” yourself from someone who’s just trying to ask you what time it is.
Carver…
Nicely said.
What I find rather hilarious (or tragic.Because you people are not reading…and are like pack animals) is this “story” is written in the second person as a WARNING to travelers about a problem in Rome!
For you people that did not get it Derek did not write this story….Also, poor little Derek is not cowering in the corner somewhere crying because I wrote some mean and nasty things here! .He probably does not even know this blog exists!
That being said, I do feel sorry for Derek for being robbed…It must have been scary..And I never said he deserved being robbed!
BUT, as I said earlier..He made some mistakes. And to all the people that have chastised me for not having any sympathy for Derek…I will again remind you of the title of this thread that reads…..”Warning to travelers” (as in listen up…you may learn something here!)
By the way, anyone who can quote the “Electronic Fund Transfer Act” verbatim.to a financial institution has enough “world experience” to know to get a police report after a robbery…Some-thin ain’t right here!! By the way this is no grade school child we are talking about here People!
Sure it’s OK to get mad at the bank…And think they should just pay it anyway…….RIGHT!…..
What ever happen to Personal Responsibility?!
>>For you people that did not get it Derek did not write this story…He probably does not even know this blog exists! <<
What are you talking about? Chris Elliott is a well known travel ombudsman who also writes for MSN. He gets involved in consumer cases because people ask him to. Chris will often post quotes from the letters written to him, so it’s pretty safe to assume that the first indented section was part of the letter written to Chris asking him to intercede.
The crimminals stole the money, why should WaMu/Chase have to pay for it? Derek had money stolen from him. My home insurance policy covers such thing. I pay insurance premiums for it. I don’t see why the bank has to pay for it.
@Bill
The simple answer is that the reason why we trust our money to financial institutions is that we expect that if we are robbed via one of their financial vehicles, we will be protected.
That’s why you’re only liable for the first $50 of unauthorized charges when someone steals your credit card. Its why when banks fail, we get up to $100,000+ back.
Its one of the reasons why we carry ATM cards, credit cards, and even, (God forbid) traveler’s checks.
The premium, if you will, is that interest free loan that you give the bank so that it can lend your money to other people at ahigher interest rate to make money.
Not the greatest tactic, but Derek didn’t authorize use of his PIN to w’draw cash only toID him. If, then the scammers make unauth use of card how does bank claim it was authorized?