Picture this: you're driving and you get a push notification from your bank, and there it is — a few dollars (or maybe more) in charges you didn't make. Your heart skips a beat and you feel sweaty. You pull over, grab the phone, call the bank, and think: “Okay, they’ll fix this, it’s fraud, not me.”
You wait on hold forever, the bank says all the right things - then the letter comes.
The bank’s response? Some corporate boilerplate that basically says: “Too bad. The card was used. It had a chip. It’s your responsibility.”
That’s when the panic sets in. You didn’t make the charges. You didn’t authorize anything. But the bank has decided you’re guilty anyway.
How This Scam Actually Happens (And Why It’s Not Your Fault)
If you live in a city or suburb with communal mailboxes, you already know the score: thieves target those boxes, break in, and scoop up the mail. One of the hottest items? Replacement credit cards.
Here’s how it plays out:
-
Your bank mails you a new card.
-
A thief intercepts it.
-
They activate it (yes, this is shockingly easy for them).
-
They run up the charges.
-
And then the bank shrugs and says: “Well, it was chipped, so it must’ve been you.”
That is total nonsense.
The Law Is On Your Side — California Identity Theft Act
Banks rely on intimidation and technical-sounding excuses to make you believe you’re stuck. But California law is crystal clear. Under the California Identity Theft Act (CITA), Cal. Civ. Code § 1798.92:
👉 You do not have to pay a penny on any debt that comes from identity theft. Period.
It doesn’t matter that the thief used the chip. It doesn’t matter that the card was “yours.” It doesn’t matter what the bank’s letter says.
If it’s identity theft, the debt is not yours.
The Big Mistake People Make (Don’t Fall For This Trap)
Here’s where a lot of good people get tripped up: the bank tells them they’re responsible, so they panic and start making payments. Maybe just the minimum, thinking: “I’ll keep my credit safe while I fight this out.”
That’s a huge mistake.
Why? Because the bank’s lawyers will later say: “See? They were paying the bill. Must’ve been theirs.”
Even the smallest payment can be twisted into an admission. That’s why we tell our clients: don’t pay anything more than the absolute minimum to prevent catastrophic credit damage — and if you can, don’t pay at all.
Your credit can be fixed. The debt can be erased. But every payment you make is ammunition for the other side.
What You Should Do Right Now
-
Stop paying on fraudulent charges. Don’t let the bank trick you into admitting responsibility.
-
Keep every letter from the bank. Those “denial” letters they send are gold for us in litigation.
-
Pull your credit report. Check for other accounts or charges you don’t recognize. Identity theft rarely happens in isolation.
-
Call me immediately. The faster we get involved, the faster we can get the fraud off your credit and force the bank to back down.
You’re Not Alone — We’ve Seen This Hundreds of Times
If this story feels familiar, that’s because it happens all the time. Identity thieves know how to beat the system, and banks know how to shift the blame. But the law was written to protect you, not them.
You don’t need to be scared. You don’t need to carry this debt. And you don’t need to fight the bank alone.
The Bottom Line
If someone stole your card out of the mailbox and ran up charges, that debt isn’t yours. The bank’s letter doesn’t change that. And the California Identity Theft Act gives you the power to fight back.
👉 Call me today for a free consultation. You’ll pay nothing out of pocket. We only get paid if we win money for you.
Stop letting the bank bully you. Start taking back control.
