How We Won Against Citibank: A Real Story About Fighting Credit Card Fraud

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, sometimes banks don’t do the right thing. They can deny fraud claims, blame you for charges you didn’t make, and leave you feeling helpless.

But here’s the good news: consumers have rights. And if you’re willing to fight back, you can win. In this blog post, I’ll share the story of one of my clients, Mr. N, who 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.

This story is important because it shows that even when a giant bank says “no,” the law says otherwise—and an arbitrator can make them pay.

The Problem: Fraudulent Charges and a Denial by Citibank

 In July 2023, Mr. N noticed four fraudulent charges on his Citibank credit card. Like any responsible cardholder, he immediately disputed them. He even called Citibank to explain that he hadn’t made the charges. 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, and it was the principle of the matter. So he decided to fight back.

Taking Citibank to Arbitration

 Most credit card agreements have what’s called 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 under the  American Arbitration Association (AAA). 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 fairly 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 a full hearing in December 2024. Both sides had filed motions, submitted evidence, and done legal arguments. 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.

Citibank Paid Our 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.

The arbitrator looked carefully at both sides. In the end, he agreed with us on most points but reduced a few hours and set the attorney hourly rate at $450 instead of $600.

Here’s what he awarded:

• $32,355 for my time
• $7,425 for co-counsel’s time
• $1,420 for paralegal time
• $1,445.70 for costs (like filing fees and transcripts)

That totaled $41,200 in attorney’s fees and $1,445.70 in costs—all paid by Citibank, not by Mr. N.

All told, Citibank’s decision to stonewall a $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—and sometimes they don’t care. Even when the fraud seems obvious, they may deny your dispute.
2. You have rights under the Fair Credit Billing Act. If you report 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 take on a bank. If you win, the bank pays your lawyer.
5. Don’t give up. Citibank tried to drown this case in legal arguments. But 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. Know your rights. Under the FCBA, you generally aren’t responsible for unauthorized charges if you report them quickly.
3. Don’t take “no” for an answer. If the bank denies your claim, ask for their reasoning in writing.
4. Talk to a consumer rights lawyer. Many lawyers, like us, take these cases without charging you upfront because the law allows us to recover fees from the bank if we win.
5. Be willing to fight. Sometimes just filing an arbitration claim pushes the bank to settle.

Final Thoughts

This case shows that regular people can beat big banks when they’re wrong. Mr. N went from being ignored over $1,085 in fraudulent charges to walking away with more than $7,500 and full coverage of his legal costs.

Citibank wanted him to give up. He didn’t. And that made all the difference.

If your bank refuses to listen when you dispute fraud, don’t let them bully you into paying for charges you didn’t make. You have rights—and with the right help, you can use them.

DON’T BE A VICTIM TO CITIBANK OR ANY OTHER CREDIT CARD ISSUER.

If you have a bogus debt on your credit card, call us.  Visit us at www.crlam.com for more information.  We will handle for you at no out of pocket charge.  Call me, Attorney Gary Nitzkin at (248) 353-2882 or email me at Gary@crlam.com.

Attorney Gary Nitzkin

Gary@crlam.com

(248) 353-2882