How We Beat Citibank in a Credit Card Dispute

When you use a credit card, you expect the bank to protect you if someone steals your card or your number. That’s the whole point, right? Sadly, Citibank does just the opposite. It expects you to pay debts that are not even yours.

You have rights against your bank that require it to investigate your disputes. If they don’t perform a reasonable investigation (and many times, they don’t), you can force them to credit your account, pay you damages along with your attorneys fees and costs. You can win these cases….we do so often.

Meet Mr. N. He had his credit card dispute improperly denied by Citibank.

Our client, Mr. N, stood up to Citibank after it wrongly refused to remove fraudulent charges from his account. With our help, he not only got justice but walked away with cash in his pocket, plus attorney’s fees and costs.

In July 2023, Mr. N noticed 4 fraudulent charges on his Citibank credit card. Like any responsible cardholder, he immediately disputed these charges. He even called Citibank to explain that he hadn’t incurred these. But instead of protecting him, Citibank refused. Their reasoning? They claimed that because the card had a chip, the charges must have been made by him. That logic makes no sense—chips don’t prevent fraud completely. Fraudsters can still get your card info, and just because a charge was “chip verified” doesn’t mean you made it.

This denial left Mr. N frustrated. The total amount in dispute was about $1,085. It wasn’t a life-changing sum, but it was money he didn’t owe, he had no intention of paying it. So he decided to fight back.

Taking Citibank to Arbitration

Most credit card agreements have an arbitration clause. This means that if you have a dispute with the bank, you can’t sue them in court. Instead, both sides must go to arbitration, where a neutral arbitrator decides the case.

In August 2023, we filed for arbitration against Citibank. The law we relied on was the Fair Credit Billing Act (FCBA), which is part of the federal Truth in Lending Act. That law says banks must reasonably investigate disputes and protect cardholders from unauthorized charges.

At first, Citibank fought back hard. They filed 22 different “affirmative defenses” (that’s lawyer-speak for excuses). They denied liability and made the process long and complicated. But we kept pushing.

The Turning Point: Settlement Before Hearing

The case was set for trial in December 2024. Both sides had taken depositions, filed motions and submitted evidence. But just weeks before the hearing, something changed.

On November 19, 2024, Citibank agreed to settle. The settlement gave Mr. N:
• $7,500 (much more than the $1,085 originally in dispute)
• An award of attorney’s fees and costs

It’s worth noting that Citibank didn’t admit they were wrong. Big banks rarely do. But the fact that they paid far more than the original amount shows they knew the risk of losing was high.

What About Legal Fees?

One of the most important parts of consumer protection laws like the FCBA is that if you win, the bank can be forced to pay your legal fees. Why? Because most people couldn’t afford to fight otherwise.

In this case, we asked the arbitrator to order Citibank to pay for the time and work it took to win the case. Our total request was about $63,000 in legal fees and costs.

Citibank argued that was too high. They claimed:

• Our hourly rate was too expensive.
• Some of the hours were unnecessary or duplicative.
• The work didn’t justify the amount we asked.

Here’s what he awarded us damages, costs and attorneys fees.  All told, Citibank’s decision to stonewall Mr. N for his $1,085 fraud dispute cost them more than $50,000.

Why This Matters to You

You might be thinking, “That’s great for Mr. N, but what about me?” Here’s why this case should matter to every credit card holder:

1. Banks make mistakes—but they don’t care. Even when the fraud seems obvious, they will deny your dispute.
2. You have rights under the Fair Credit Billing Act. If you dispute fraud quickly, the law is on your side. Banks can’t just brush you off.
3. Arbitration can work for consumers. Many people think arbitration always favors big companies. That’s not true. With the right help, you can win.
4. Fee-shifting laws level the playing field. You don’t have to be rich to get a good lawyer.  The bank has good lawyers and you can, too.
5. Don’t give up. Citibank tried to drown this case in legal arguments. But our persistence paid off.

What to Do If Your Bank Refuses a Fraud Claim

If you ever find yourself in the same boat as Mr. N, here are some steps you can take:

1. Dispute the charge immediately. Call your bank and follow up in writing. Keep records.
2. Call us.  We will handle your dispute from there.

Final Thoughts

This case shows that regular people can beat big banks when they’re wrong. Mr. N went from being stuck with  $1,085 in fraudulent charges that he did not owe to walking away with cash and full coverage of his legal costs.

Call us if Citibank has denied your credit card dispute.

My staff and I are here to help you at no out of pocket charge. Call me, Attorney Gary Nitzkin at (248) 353-2882 or email me at Gary@dontpayfraud.com. Visit our website at Consumer Dispute Lawyers at www.dontpayfraud.com.

Dont pay a credit card charge that you don’t owe.

Attorney Gary Nitzkin

Gary@dontpayfraud.com

(248) 353-2882