Company knowingly debit fees it is not due from bank account and does not return it: is this fraud or theft? This morning, I was reading this article on the Consumerist about a man who cancelled his business service with Comcast. In summary, he had an early termination fee of $1,775 debited from his bank account, which shouldn't have happened because it was past the term of his two-year contract. Comcast do not dispute those facts, and have repeatedly told him that a check was on its way but, two years later, the man has still not been unable to get a refund. At one point, he was told by a company representative that refunds are not issued in these circumstances, and that he should instead dispute the charge with his bank. I am interested in the potential criminal liability in a situation like this (not necessarily this one) where a company knowingly takes money it is not due from someone's bank account and clearly has no intention of returning it. Specifically: Could the victim report this as fraud, theft or some other related crime? Would the answer to the previous question differ based on whether the victim was eventually able to recover the money through litigation or by disputing the charge with their bank? Would the company itself or the specific employees involved be liable? Would a binding arbitration clause in the contract have any effect on criminal liability (I believe not)? I would be especially (but not exclusively) interested in answers covering either the United States or Canada (especially Québec).
Could the victim report this as fraud, theft or some other related crime? They could, but it's unclear whether they would be successful. A criminal conviction would require intent on the part of the company or an employee, and that will probably be difficult to prove. In a big system like this, individuals can usually claim misunderstandings and errors of omission, which makes such a proof difficult. They could try to establish criminal corporate liability, but again this is difficult to prove. So while possible, it's probably not worth it. Would the answer to the previous question differ based on whether the victim was eventually able to recover the money through litigation or by disputing the charge with their bank? Probably not. For a criminal conviction, it's necessary to prove that the company or an employee deliberately took money they knew was not theirs. Whether they later gave it back is not relevant for determining guilt (though it may reduce the sentence). Would the company itself or the specific employees involved be liable? In principle, both could be held liable. Again, this depends on what can be proved in court. Would a binding arbitration clause in the contract have any effect on criminal liability No, arbitration clauses cannot protect from criminal liability, only from civil liability (within limits). Off-topic: The fastest way to resolve such situations is usually to write one stern letter explaining why you are owed the money. If that does not work, sue them - if the situation is clear-cut, you will most likely win, or the company will settle. Many jurisdictions have simplified court proceedings for clear cases like this, for example the Mahnverfahren in Germany.
If I may paraphrase the scenario: The customer has a contract with the insurer The customer is contemplating undergoing a certain procedure and is unsure if it is covered under the contract The customer calls the insurer to ask this specific question The insurer says "yes" The customer undergoes the procedure The insurer refuses to pay on the ground that it is not covered under the contract. Let's put aside issues of evidence and what can be proved and assume these facts are not in dispute. There is no question that the contract has been renegotiated; it hasn't. This avoids the necessity of considering if the insurer's employee has the authority to do this or it the customer can rely that they do even if they don't. There are two possibilities: The procedure is covered and the insurer must pay under contract The procedure isn't covered and the insurer must pay under the tort of negligent misstatement. The insurer is vicariously liable for the actions of its employee. The insurer owes a duty of care to a customer who asks such a question to answer it correctly. It is foreseeable that the customer would act on the insurer's advice and incur costs that they may have avoided if the correct advice had been given. Nothing is ever certain in the law but this is as close as you can get.
Being as general as possible - refund policies are governed by bank and scheme policies, and so aren't necessarily the domain of law. There may be jurisdiction-specific regulations that limit your liability as a consumer, but there's not usually a legal requirement. This is almost certainly wholly governed by your credit card terms of use.¹ You can report this to your local authorities, but without proof of a crime, it's unlikely to be actionable. The website isn't necessarily to blame, either - if your computer or your connection to the website was somehow compromised, then your details may have been obtained in that way, and the website could have had nothing to do with it. Again, this is almost certainly wholly governed by their scheme agreement.¹ 1. Some off-topic information here, which may or may not be accurate, and which you should not seek clarification for here (check Money SE instead, and first check whether it is on-topic there) - generally, bank policies will refund you for fraudulent transactions below a certain quantity or value. In this case, the bank tends to take a loss and chargeback rights are not exercised. In other cases, the bank will require the merchant to prove that the authorised cardholder did in fact authorise the transaction. The level of proof is governed by the way in which the transaction was conducted and verified at the time of purchase - whether the CVV2 code was verified, whether address verification was completed, whether 3D verification was completed. If the merchant is unable to prove, according to the scheme guidelines, the transaction will be charged back to their account.
Update: I've filed a complaint with the CA Attorney General. They automatically forwarded the complaint to Comcast and sent me a notice in the mail. If you have filed a complaint against a business, we will forward your complaint to that business and request that it contact you promptly to resolve the issues you raised. Please note that we cannot represent you, advocate for you with the business, or force the business to satisfy individual requests for relief. Please contact the business directly to discuss your complaint. While we cannot provide specific legal advice, please see the information below, which may help address your concern. For more information about the CCPA, please see https://oag.ca.gov/privacy/ccpa and https://cppa.ca.gov/. [...] If a business has violated the CCPA, you may notify the Office of the Attorney General by filing a consumer complaint. While we cannot file an action on behalf of an individual consumer over an individual violation, consumer complaints are an important source of information for the office. We will review consumer complaints to identify patterns of misconduct and to determine what law enforcement actions to take. You can sue a business under the CCPA only if your unencrypted and un-redacted personal information was stolen in a data breach as a result of the business's failure to maintain reasonable security procedures and practices to protect it. You must generally give the business written notice of its violations and 30 days to fix the violations before you can sue. For more information about when you can sue for a CCPA violation, visit https://oag.ca.gov/privacy/ccpa If you want to consult an attorney, you can obtain a referral to a certified lawyer referral service through the State Bar at (866) 442-2529 (toll-free in California) or (415) 538-2250 (from outside California), or online at https://www.calbar.ca.gov. If you cannot afford to pay an attorney, contact your local legal aid office to see if you qualify for free or reduced-rate legal assistance. For a referral to local legal aid offices, visit https://lawhelpca.org/ and click on the Search for Legal Help tab. Comcast responded immediately to the forwarded complaint and appears to have deactivated my login, but nearly a month later have still not confirmed whether any personal information has been deleted. I'd strongly recommend anyone in a similar situation to file a complaint as well. There's no guarantee the Attorney General or California Privacy Protection Agency will act on it, but it can increase the civil penalty to the company by $5,000 per complaint (see section 1798.155) and makes it more likely they will comply. Don't waste your time with any unnecessary calls from the business or obfuscating information yourself as a commenter here mentioned. Just submit your CCPA request in writing, complete the identity verification, wait the 45 days as allowed by the law (or 90 if an extension is requested, see section 1798.130), and file a complaint if it's not completed. Update 2: I received a forwarded letter from Comcast to the Attorney General in response to my complaint. They lied and backdated their alleged completion date of the deletion request to fall within the 45 day deadline, despite emails I sent past their claimed date repeating the request as I was still able to login. Before filing a complaint, make sure to take screenshots showing you logged into the account and email it to the business in order to document it.
Burglary, theft and fraud(s) The burglary and theft are trivial and unlikely to be prosecuted - it’s the breaking in (burglary) and taking (theft) of the possessions including the physical card itself. Using someone else’s credit card without permission is fraud - in this case it appears there were several frauds. All are crimes against the Queen. While crimes may have victims, they are perpetrated against the state, which, in the UK is the Sovereign. The gym was a victim of burglary, the cardholder was a victim of theft, the cardholder and the bank are victims of frauds. Any of these aggrieved people may seek damages from the perpetrator(s) (who appear to be unknown at this time) for whatever their losses are. Their most likely causes of action are the torts of conversion (the civil equivalent of theft) and fraud (the civil equivalent of, well, fraud). The allocation of the loss between the bank and the cardholder is a matter of the contract between them and financial regulations.
If they actually mean $0, then that is not "taking advantage". If they do not mean $0, it is most likely that they will tell you "Sorry, we made a mistake, we're not gonna send you that Rolex for $0 plus shipping". If this came with free shipping, then you would not actually have a contract, because there s no consideration on your part (no payola). Fortunately, there is shipping, so there is a contract. You could then attempt to force them to send you the goods, which they might do rather than irritate you, but not if it is a Rolex. One of the defenses against enforcing a contract is "mistake", and a $0 Rolex would be a great example of that. Things get a bit more tricky if you relied on their free Rolex. You would look up the doctrine of promissory estoppel, to see if the seller could be estopped from making the mistake argument. Let's say that you also bought a Rolex Display Case from someone else at a cost of $100 plus shipping. By relying on their promise to sent you a Rolex, you have suffered a loss. The most likely outcome is that they'd have to reimburse your Display Case expense. (Finding) mistake airfares is an industry: a common response for the airline is to say "Oops, sorry", though sometimes they honor the mistake fare. Rumor has it that rather than get trashed on Twitter, the airlines honor mistake fares. You may find disclaimer language pertaining to verification of prices and availability, which also gets them off the hook. At any rate, you certainly won't be sued or prosecuted for assuming that they mean it and buying the thing; you might be disappointed.
You didn't consent to being ripped off. You did however fail to grasp the terms under which you were permitted to park on their property, and you failed to pursue an alternative (such as looking for change; using a credit card). It is possible that you should have known that this was a no-change-given machine, since one can often see that there is no mechanism on these machines whereby you can actually get change. However, if you have clear proof that you owed $6 and you paid $10, then 4 of those dollars are properly yours, and there is a reasonable chance that you could prevail in a suit against them. There is even a greater chance that they would refund the difference, just as a sensible business practice. "Exact change" is legal and can even be the law, especially in government-run transportation systems.
The party that made the overpayment would have the right to sue you for "unjust enrichment" or "breach of contract" (since the terms of service no doubt provide or strongly imply that you are entitled to only one payment per sale), if you didn't voluntarily return the overpayment following a demand to do so, even though you received it through no fault of your own. Most of the core cases involve clerical errors in the bank account number used for a bank deposit. In general, there is a right to recover an accidental transfer of property to another, even in the absence of a clearly applicable contractual arrangement. As another example, if you were accidentally given a valuable coat at a coat check by accident and didn't notice it until later, the true owner would have a right to have it returned. The FTC regulation applies (as demonstrated by the link cited in the question) to intentional unsolicited deliveries of merchandise (which would always be tangible personal property by definition) to you through the mail. It does not apply to transfers of money, or to the accidental mis-delivery of property to the wrong person or the wrong address. The law in question is as follows: 39 U.S. Code § 3009 - Mailing of unordered merchandise (a) Except for (1) free samples clearly and conspicuously marked as such, and (2) merchandise mailed by a charitable organization soliciting contributions, the mailing of un­ordered merchandise or of communications prohibited by subsection (c) of this section constitutes an unfair method of competition and an unfair trade practice in violation of section 45(a)(1) of title 15. (b) Any merchandise mailed in violation of subsection (a) of this section, or within the exceptions contained therein, may be treated as a gift by the recipient, who shall have the right to retain, use, discard, or dispose of it in any manner he sees fit without any obligation whatsoever to the sender. All such merchandise shall have attached to it a clear and conspicuous statement informing the recipient that he may treat the merchandise as a gift to him and has the right to retain, use, discard, or dispose of it in any manner he sees fit without any obligation whatsoever to the sender. (c) No mailer of any merchandise mailed in violation of subsection (a) of this section, or within the exceptions contained therein, shall mail to any recipient of such merchandise a bill for such merchandise or any dunning communications. (d) For the purposes of this section, “un­ordered merchandise” means merchandise mailed without the prior expressed request or consent of the recipient.