Plus: disputing a charge made by a family member? Be prepared for police involvement

Media Contact: Barbara Fornasiero; EAFocus Communications; barbara@eafocus.com; 248.260.8466

Wyandotte, Mich. —May 12, 2026 –Michigan Legacy Credit Union (MLCU), serving members throughout Michigan via local branches and virtual banking platforms and offering a variety of community-focused education programs to the public, is now sharing information on the process for disputing credit and debit card charges. Hint: Before you contact your credit union or bank, there is some work you need to do first.

“This issue comes up repeatedly but became top of mind with the Spirit bankruptcy,” Carma Peters, MLCU President and CEO, said.  “We had members calling us first and asking to dispute the charge of an airline ticket they purchased prior to Spirit ceasing all flights. While Spirit was already doing automatic refunds, members were contacting Michigan Legacy before checking their statements. The scenario turned out to be a teachable moment to remind credit and debit card holders that any attempt to dispute a card charge, regardless of the purchase, must first be directed to the merchant and not the financial institution that issued the card.”

Peters says to think about the credit card dispute as similar to returning an item that was purchased with a credit card.

“If you are returning a dress that you bought using a credit card, you return the dress to the store where it was purchased – not the financial institution that issued the credit card used for the purchase,” Peters said.

A financial institution cannot step into help until documentation can be provided detailing that communications between the merchant and the credit card holder have already taken place. Even then, getting a credit or debit card charge reversed is difficult, but the financial institution can review the documentation to see if a case can be made to continue the dispute, with the financial institution taking the lead.

“Even when the financial institution submits the dispute with documentation to the merchant, the merchant may have solid evidence the purchase was valid and will not refund the charge,” Peters said. “This decision is not in the hands of the financial institution. If provisional credit is extended – meaning the charge is temporarily refunded – it can still be rescinded, and the provisional credit will be taken back.”

Peters adds that another common form of a disputed charge is when the cardholder has given their card or pin number to a family member, who then uses the credit or debit card without explicit authorization from the cardholder. Peters says it’s one thing when it happens that a teen as used a parent’s card – that’s typically resolved at the immediate family level – but adult children, siblings or parents and friends gets trickier.

“For the card member to dispute a friend or family member’s charge, we explain that the credit union member will have to file a police report and the cardholder will need to testify in court against that friend or family member to get the charge reversed. That typically stops them from taking any further action,” Peters said.

The key takeaway? Don’t share your credit or debit card information with anyone unless you are prepared to cover the cost of purchases other than your own – without dispute.

About Michigan Legacy Credit Union

Michigan Legacy Credit Union (MLCU) is a member-owned, not-for-profit financial cooperative serving members who live, work, worship, attend school, or own a business in the state of Michigan. Michigan Legacy Credit Union is committed to providing quality financial services at a competitive price, delivered professionally and efficiently while keeping member/owners and their needs first. For additional information on MLCU, visit: www.michiganlegacycu.org.

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