FTC Says Payment Processor Took Millions 120
coondoggie writes "The Federal Trade Commission and seven states have charged a payment processor with violating federal and state laws by debiting, or attempting to debit, from consumers' bank accounts on behalf of numerous fraudulent telemarketers and Internet-based merchants. Between June 2004 and March 2006, the payment processing company, Your Money Access, processed more than $200 million in debits and attempted debits to consumers' bank accounts. More than $69 million of the attempted debits were returned or rejected by consumers or their banks for various reasons, indicating the lack of consumer authorization, the FTC complaint alleges."
Re:This place is bad news. (Score:2, Informative)
Re:This went on for nearly 2 years? (Score:3, Informative)
Re:This went on for nearly 2 years? (Score:3, Informative)
(Oh yeah... www.ccfsettlement.com Get your share of the settlement. at least $25 of it anyway. the lawyers will get most of it.)
So these people scamming us didn't shut down some other companys scamming us too? No way! I'm hmm... less than shocked..
Re:This went on for nearly 2 years? (Score:4, Informative)
It always amazes me how many people think it's a good idea to carry a card that give access to their checking account with no pin, no id, and not even a signature.
Re:That's why credit cards are better (Score:3, Informative)
Does not appear to be CC related. RTFA (Score:5, Informative)
Defendants withdrew funds from consumers' bank accounts in one of two ways: by electronically debiting consumer bank accounts through the Automated Clearing House Network or by submitting checks and falsely representing that the consumers had approved them.
See http://www.allamericanpatriots.com/48738769_illinois-ag-madigan-joins-six-states-ftc-suit-stop-florida-company-fraudulent-debits [allamericanpatriots.com]
So this is a case of direct taking from accounts or use of fradulenet checks. That is why no Credit Card company raised an alarm, they were not even in the loop
Re:This went on for nearly 2 years? (Score:4, Informative)
5. Your CC company requests proof of transaction
6. Bad CC company provides tainted proof
[decision tree]
6(a). Your CC company calls the lawyers
6(b). Your CC company makes you prove that the charges are false
6(c). Your CC company decides (a) and (b) will cost more than just eating the cost
Guess what two they do the most? B and C. In credit cards, almost all of the risk is on the card issuer. The vendor has some slight risk, but only if they don't follow procedures. The card holder has very little risk since Visa and Mastercard force the issuers to pay if there is a dispute. The processor has zero risk.
Lil' background info (Score:3, Informative)
Re:This went on for nearly 2 years? (Score:3, Informative)
Any bank that issues a card with the Visa or MasterCard logo has agreed to meet or exceed the consumer protection policies of Visa or MasterCard. This is how it's ALWAYS been, debit card horror stories notwithstanding.
Visa:
"Debit cards have the same security protections as credit cards. Just like credit card cards, debit cards have Zero Liability* fraud protection and dispute resolution options."
http://usa.visa.com/personal/using_visa/personal_finance/debit.html [visa.com]
MasterCard:
"With your debit card, you'll enjoy great features such as worldwide acceptance at millions of locations, MasterCard Global Service, and Zero Liability* protection from unauthorized purchases."
http://www.mastercard.com/us/personal/en/aboutourcards/debit/standard_card.html [mastercard.com]
No, this protection is not mandated by LAW as it is with Credit Cards, but it is mandated by Visa and MasterCard who have ZERO INTEREST in seeing their good name tarnished.
Everyone has heard Debit Card Horror Stories. My suggestion is to have a critical ear and check the facts, instead of just passing-on the FUD.