Norwest Bank, NA

Scott of Moorhead, MN, writes:

Once a month, beginning in September 1998, my checking account was fraudulently electronically debited in the amount of $30 by--as far as I can determine--an Internet pornography company. At the time I began receiving these unauthorized debits, I had never used my checking account's Visa debit card for any phone, mail or Internet charges; nor had I ever NOT had the card in my possession; nor did I ever access any pornography websites, or even have Internet access.

These circumstances, as well as the fact that the company changed its name nearly every month, indicated to me that the situation was not a mistake, but a purposeful attempt to defraud me, and possibly others, on an ongoing basis.

Repeated attempts to resolve the situation via phone contact with Norwest Customer Service yielded no results, so I was left with no alternative but to close my account and initiate a fraud report at my local branch bank. At that time, I also drafted letters to the local branch President and the Norwest's Corporate Operations Center in Minneapolis, Minnesota.

Neither letter yielded a response, much less an apology or a resolution. I work for the credit card division of a major U.S. bank, and I advise people of their rights under Visa regulations and federal law on a daily basis, so this situation was all the more frustrating. I will attempt to contact the entities involved once again, via registered mail, but, other than that I do not know what recourse I have in the face of Norwest's stonewalling.

Here is a cut-and-paste version of the letter I sent.

Mr. Jeff Kemink,

President
Norwest Bank, NA
730 Center Avenue
Moorhead MN 56560

Dear Mr. Kemink:

One of your parent bank's most recent corporate promotions includes the phrase, "Norwest--It's About People." Whenever I hear that phrase, or the old standby "To The Nth Degree," I wonder whether it is referring just to the customer, or also includes an institutional, philosophical commitment on the part of your own "people," your employees. After you read this letter, I hope you take the time to answer that question, along with assisting me in resolving some troubling issues.

I have banked at your location since moving to Moorhead in 1991. When American Bank & Trust was acquired by Norwest, I elected to remain a customer. Since my checking account has been with Norwest, however, I have had some unpleasant and disappointing experiences I feel require your attention.

My first issue deals with the fact that I was told the monthly fee for my check access card would be waived, due to my employment status and account relationships with Wal-Mart Stores, Inc. My records indicate that I have been charged the fee since its establishment (December 1997), however. That small inconvenience and expense aside, there is a much more serious issue I would like to tell you about.

Once a month since September, 1998, my account (032-252910) was fraudulently debited in the amount of $30.00. It appears to me that these regular charges are for some sort of computer pornography access or membership, which makes the situation all the more offensive and troubling to me. The merchant seems to change names and machine IDs every month or two, but these are the transactions as they appeared, chronologically, on my statements:

• "Mach ID 440369 Playgirl Online (800- Ny 831421711314";

• "Mach ID 440369 Playgirl.Com 800- Ny 834428711344";

• "Mach ID 427529 Multimedia *playgirl*on 8007 Ny";

• "Mach ID 427529 Multimedia *playgirl.Co 8007 Ny";

• "Mach ID 427529 Greydove *xgry.Com 8007 Ny"; and

• "Mach ID 401149 Bird N Bee,I *ybird.Com 8007 Ny."

Since my repeated attempts to have the fraud investigated and stopped via Norwest Customer Service were unsuccessful, I have had no viable option but to gradually move all my personal and business accounts to a more secure, cooperative institution; and then, to eventually close my last account in person June 3.

At that time, an employee finally went through the process of filing formal fraud claims as far back as allowed by federal regulations. It is disturbing to me that such issues, which I take quite seriously and have attempted in good faith to correct, remained unresolved. I know you, as a bank executive, are extremely busy, but I feel I must inform you of these issues since they were never appropriately handled by anybody else.

If you are personally unable to help me in recovering the money stolen from my account, I would appreciate your assistance in escalating my complaints to the appropriate levels, tracking down who fraudulently gained access to my account, and determining how such access was gained. I thank you for your time and attention. I may be reached at the address, number, or e-mail address above.

Sincerely,

Scott

As my above explanation and letter copy indicate, the entire situation was incredibly frustrating. There was also the additional horror and shame associated with the fact that I was unwillingly giving money to a dishonest, disgusting person or organization on a monthly basis. My disgust was only heightened by the fact that I know many of my rights as a consumer, yet was unable to garner assistance from individuals at any level of Norwest's organization.

It is indeed extremely frustrating that banks ignore their obligations -- legal and otherwise. It's good that Scott is being persistent. He could also file a complaint with the Federal Trade Commission , the Comptroller of the Currency, the Minnesota banking regulators and his state's Attorney General. While he's at it, he might as well sue the bank in Small Claims Court.

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