How to protect yourself from credit card scams
A start-to-finish analysis
by Rip-off Report.comby
ED Magedson - Founder &
Consumer AdvocateEDitor@ripoffreport.com
Maybe you have just received a credit card offer in the mail that sounds incredible. So incredible that it makes you wonder, "is this too good to be true?" Maybe you just paid good money for what you believe is a major credit card. Or maybe you paid for a credit card and got something unexpected in return, like an unsolicited phone card. If any of the above situations apply to you, it is imperative that you continue reading this chapter.
In this report, we will briefly describe the popular credit card scams; outline what some of the credit card scam warning signs are, and how you can find out if an offer is legitimate. However, we will mostly focus on what you, as the consumer, can do if you realize that you have "been had."
We will start by telling you what scams are very popular, and how the scams operate. This horrible trend is occurring not only across the United States, but also internationally. Many innocent consumers are being ripped off by fraudulent credit card companies every day. Here is a quick run down of what these companies are doing to steal hard-earned money from the pockets of citizens.
the Bait…
The "companies" purposely seek out people with horrible credit or no credit, and offer them a major credit card in exchange for a start up fee. They take the customers bank account number over the phone, usually withdrawing between $150 to over $500 dollars from that persons account, and in most cases do not send anything to the consumer in return. Beyond that, they have been known to sell this private banking information to other companies who will, in turn, make repeated and unauthorized debits to consumer bank accounts. The scam companies themselves will often continue to access the consumers' bank accounts without permission.
There are some consumers who finally do receive a package in the mail, but it is not what they expected. The package will consist of No major credit card, just a folder full of flyers, some secured credit card applications that could be obtained without fee elsewhere, maybe a catalog, and on rare occasions, a "platinum" or "gold" card that can only be used to purchase items out of a catalog.
Even when a consumer does get all of the aforementioned items, they were just as well off not receiving anything at all. This is because the card can only be used if the consumer makes a hefty cash down payment (up to 60%) on overpriced and outdated catalog merchandise.
the Catch…
Now, let's say you get a similar letter, or for that matter a phone call that is offering a credit card with a large credit line upwards of $10,000, and perhaps a low (or no) interest rate, regardless of past credit history, all in exchange for a "small" processing fee. Again, the only catch they say is the small "processing fee" ranging from $40 to $500, payable by check. They even tell you that for your convenience, you can pay via check-by-phone to instantly get your brand new platinum or gold card. All you have to do is give them your account number.
WARNING: Of course this sounds great, too good to be true even, but you may need the credit and want to give it a shot. If this is the case what do you do? If you want to determine if this great offer is real or not, you can follow a few easy steps, and look for some obvious credit card fraud warning signs.
Lets talk about warning signs first. Many of the fraudulent credit card companies use many of the same methods to get consumers to take the bait, but these methods are in many cases, also signs of fraud. Below are just a few of the warning sings.
*They claim to offer a very high unsecured credit lines, even to those with bad credit.
*They claim to offer major Gold or Platinum cards with little or no interest for up to the first 3 years
*They offer customers non-existent vacations, free computers, and other benefits in addition to the credit card.
*Their offers contain no real bank name
*There is no contact phone number on the offer OR they only provide an 800 phone number, with no other phone number with a bona fide area code OR vice versa.
*There is no web site, and if there is a web site, there is no further contact information and password protected.
*The company only lists a P.O. Box address
*There is no county business license filed; It is not registered with the State's Corporation entity (if incorporated)
*There is no physical address for the contact of an agent (Even if the business is incorporated in another state, they must have a registered agent in each state in which they do business)
*The name of the company is similar to that of a legitimate bank.
*The offers say "for limited time" or "must act today"
*The letter or phone rep stating "for today only"
*They offer this only in return for auto bank payment, and do not accept checks by mail or credit card payments.
If you receive an offer and it has these warning signs, our advice is to stay away. However, if you are still intent on finding out for sure, you can always check RipoffReport.com to read what other consumers are saying about a particular credit card company, or you can contact a Rip-off Report staff member by email. In addition to visiting Rip-off Report™ and using us as an asset, you can also check with your state's department consumer protection, the Federal Trade Commission, and even your state's Attorney General's Office. In our opinion, the Better Business Bureau (and their inaccurate files) is a bust, because they solicit membership in exchange for favorable status. But if you feel you must, you can always contact them as well.
By contacting these agencies, you will be able to find out if other consumers have filed complaints about the company you are researching. Finally, if the company checks out with all of the above check your state's Department of State to confirm that the company is active and permitted to do business within your state.
the Damage Done…
What if it is too late? What if the offer just sounded too good to miss out on, and you just gave out your banking information to a card company before doing research? What do you do, what can you do?
First, before you come to any conclusions, research the company using the methods that we previously mentioned. However, do this research quickly because putting it off for even one day too many could mean the difference between the very easy way out, and the very difficult way out.
Don't let them get away with it!™
If after doing research you find that a company is a scam, or is not offering what they promised, do not kick yourself and do not beat yourself up, take action immediately, and make them the sucker! These companies are good at selling you on their scam products, so don't feel too bad if you fell for it, just make sure you make them pay. Don't let them get away with it!™
Obviously, most of you will want to get your money back and prevent the company from scamming you again before you do anything else, so we will discuss some ways that you can do so. If you paid over the phone with your checking account, get to your bank as soon as possible, and close that account. This will prevent the fraudulent company from making unauthorized debits to your account in the future. Thus, they will not be able to scam you again.
WARNING: Even if you are able to catch this in time by placing a stop payment on the transaction, if you leave your account open the scam artists can go back into your account and debit your account later.
Before you go any further you should also report your situation to law enforcement in an effort to make them aware of what may be a new scam. Some government agencies you may want to contact are the FTC, the FBI, the state Attorney General's Office, and even your local police. (You can usually find these phone numbers in the government listings of your local phone book.) If the offer was over the Internet or by phone you should also contact the FCC. Doing this will probably not get you a refund, but it may help protect others from being scammed in the future.
Last but not least, be sure to file a Rip-off Report at ripoffreport.com. Telling your story here will definitely help to warn others, and may also help you recoup your losses because you may provide Rip-off Report staff the information needed to go after the company!
GETTING YOUR MONEY BACK!
Now, let's talk about getting that money back! If the company took money from your account less than 60 days ago, you have a good chance at getting an easy refund. So, once again, jump in that car, hop on the trolley, or even that pink huffy, and get to your bank ASAP. When you get there, tell your bank manager that a fraudulent company took money from your account, and that you wish to have the unauthorized Automated Clearing House (ACH) transaction reversed immediately. A nice touch would be to take printed copies of other Rip-off Reports filed on the company that victimized you.
Most banks will be cooperative, reverse the transaction and credit your account right away. However, there are some banks that are not helpful in this area, at all. These banks will treat you rudely and question you to no end… they will ask "how did the company get your account number?", "why did you authorize this?", "we can not help", etc. Basically, they will try to make you feel like an idiot, but don't let that happen!
Getting a Refund
If the transaction was within 60 days, and you request a reversal, but you sense that your bank will not cooperate with you, here is what you do: Tell them that you did not authorize the debit, DEMAND that they reverse the ACH transaction in accordance with NACHA and Federal Regulation E rules, and let them know you wish to sign an affidavit of unauthorized/fraudulent account activity. Make it clear to the bank that if they do not assist you, legal and other appropriate actions will be taken against them. Even let the bank know that you will file a rip-off report on the Internet about them if they do not help you immediately. Don't be afraid to escalate the matter by speaking to the supervisor, the manager, etc. until you have even spoken to the president of the bank.
If you do all this, and they still do not cooperate, contact the RipOffReport.com EDitor's staff right away. They may be able to assist you further. In rare cases, the companies take payment via credit card, and if this happens the answers are even simpler. Call your credit card company right away and dispute the charge. These disputes are almost always effective.
Fraudulent companies are just that, fraudulent… and they will not contest ACH reversals or credit card disputes. Therefore, if you are certain that you were scammed, do not let the scam company's reps scare you with threats of tape-recorded conversations that will show you are lying. This is because even if they did get your conversations on tape (they most likely didn't), the recorded conversations would only show that the company fully engaged in illegal and misleading activity.
Now, you should have a good idea of what to do if you realize that you were taken within 2 months of the debit or date of the scam… dispute the charge at your bank, or with your credit card company, and most likely, all will be fine.
It's never too late!
BUT, what if you were busy or for some other reason, it took you more than 2 months to realize that you were a scam victim? Here is where it gets tricky… Things CAN be done to get a refund and even a little revenge after the 2-month deadline. We will discuss those options later.
Before we get to that, please remember that if you are in the process of dealing with a company that appears to be fraudulent, do not accept their excuses, act before the 60-day deadline! These companies purposely try to hold you off by making excuses for what they call "delays," or technical problems, when in reality, they are just trying to get you past this 60-day deadline, in an effort to prevent you from disputing the transactions.
I am sure you are wondering what can be done if you waited too long? Let's talk about a few of your options. Keep in mind that this company ripped you off, and they now think they got away with it, so it is time to get real mean! Be determined, and do NOT be afraid to pull out all the stops.
FOLLOW THE MONEY TRAIL
Scam companies, just as terrorists and other clandestine organizations, need to have someone else move their money. Finding those who handle the money is the best way to put an end to their illegal activity. Finding the money source is also the best way to find out who is behind the scam, and definitely your best shot at a refund. I will explain what these scam companies do to get to your money and how to use that information to your advantage. It is too late to deal directly with the scam company now, they do not care who you report them to at this point, so you must go after the money processors.
The fraudulent credit card firms almost never have the capability to process your banking information without outside help. Therefore, they hire third party Automated Clearing House (ACH) processing companies to debit, and in extremely rare cases, credit bank accounts for them. Find the money processor, and in most cases, you've found your refund!
To do so, you will once again have to get to your bank. Tell the bank your situation, and tell them what you need, which is the name of the third party processor, who put the transaction through for the fraudulent credit card firm. The bank will usually have to do an ACH investigation and get back to you in a few days with the information. The bank will have no reason to be uncooperative, but if for some reason they are, it is definitely time that you find a new bank. If they refuse to get you this information, they are not worthy to receive your business.
Before you leave the bank, however, do not go out without a bang. Talk to the bank manager, demand he/she get you the information, and if necessary, even threaten them with a small claim lawsuit, something we will talk about later. Remember, now is the time to get mean! Now it's your turn to be sneaky. Give them a taste of their own medicine!!
It may also be helpful to let them know you intend to picket the bank with signs that they are aiding and abetting the deception and fraud of other customers and that the bank can not be bothered by giving this information which should be readily available anyway. Let the bank know you will also hold a press conference with all the local news media.
I am sure many of you are saying, "okay, suppose I am able to get the name and phone number of the third party ACH processing company, now what?" Well, here is what you do… The third party processors are often pretty legitimate. They only make money by processing money. However, if they paid closer attention to their clients, you would not be in the situation you are in now, right? Well, let's remind them of that! BUT before we do, we need some information about the third party processor.
So, go to your phone and call the Secretary of State of the processor's home state, or any state in which they actively do business, and get a copy of the processor's annual status report. This report will have the processor's corporate director list, physical addresses, and registered agent information. You can usually get these same status reports on the appropriate state's Secretary of State web page.
While you are at it, you should also try to get a status report for the company that ripped you off, because you may need the information contained therein at a later date. If you have problems getting a report(s), please contact the RipOffReport.com EDitor's staff, as they may be able to help. However, only do so if you are able to send them the above pertinent information, or at least the name of the ACH processor.
After you get the aforementioned annual status report, it is time to do a little more research. Try calling 411, and getting home phone numbers and addresses for the processor's corporate officers and registered agent, if they are not listed on the corporation information page. Then see if the processor has a web site by doing an Internet search, and begin to collect email addresses for as many employees as possible.
Once you gather as much information about the third party ACH processor, and their staff, you need to call them (business line first), and ask to speak with their CEO. If you have their status report, you will already know the name of their CEO, so ask for him/her by name. They may not put you through at first but be persistent, do not stop calling until you get an executive on the line.
Tell the CEO or other corporate officer your story (nicely at first) and ask that they assist you in getting a refund. Who knows, they may be helpful. If not, remind him or her that their company is processing money for a company engaged in illegal activities. Then, inform him/her that if they do not assist you, you will add their name to the small claim you filed against the fraudulent credit card company. You may make this threat even if you have not yet filed a small claim! If the processing company wants to avoid sending an attorney half way across the U.S. to defend a lawsuit worth no more than a few thousand dollars, they will just refund you on behalf of their fraudulent client.
If they still are not cooperative, time to get a little nasty! Tell the processor that above and beyond the lawsuit, and a report to law enforcement, you will be repeatedly posting their legally-obtained home phone numbers, cell phone numbers, home addresses, email addresses, etc. on RipOffReport.com. Doing all or a combination of the above will usually work, especially if the processing company is legitimate and wants to protect their good name.
Sometimes, however, the processing company will just refuse to help you all together. Then what? Well, first do exactly what you said, file a Rip-off Report that contains all of the personal information you obtained legally. If you have trouble gathering this personal information, contact the ripoffreport.com staff for help.
Posting this personal information will get you partial revenge, and some satisfaction, but may not be enough to get a refund. By revealing their personal information in a Rip-off Report and faxing a copy to them, will probably get their attention enough to get them to talk to you about returning your money.
If all else fails, you can really file a small claim lawsuit against everyone involved. To do so, you will need the name and registered agent for both the scam company and their processor. This information will be on the status report you obtained earlier.
All you have to do to file this small claim is go to your local small claims courthouse (which are normally called justice of the peace courts, municipal courts, or district courts), and pay a small fee, if any. Then, take the company names, and list them on a small claim lawsuit using the registered agent addresses.
Filing a small claims lawsuit accomplishes a few things. First and foremost, they annoy and inconvenience the companies they are filed against! In addition, they are inexpensive to file, and will almost always get you a judgment. Many times, the companies will not even respond which means you will get an automatic default judgment, so ask for the state maximum! If you win by default (or otherwise), your local court will tell you how to execute the judgment (which means how to get your money back). Remember, that interest can accrue usually from the date of loss. In most states it is about 9 - 10% per annum, or about ¾% per month. It adds up.
One other thing filing a small claim may help you do, is protects your credit. In some cases, fraudulent credit card companies have the nerve to send negative reports to credit bureaus. If this happens, your lawsuit judgment would help show that you do not owe them money!
If you really want to pay back a company that ripped you off, you could always go to your local municipal court and file a claim against the corporate officers personally using their home addresses. You may not win, but dragging their rears along with their lawyers to your home state sure would be fun, wouldn't it?
Hopefully, some of the above methods will help those of you who are on a quest to retrieve money that is rightfully yours. I also hope we helped to properly warn others about the horrible scams that are plaguing America.
Finally, visit the Rip-off Report and contact our staff if you feel that we can be of any help.
Remember, DON'T let them get away with it™ Make sure THEY make the Rip-off Report!
ED Magedson - Founder &
Consumer AdvocateEDitor@RipoffReport.com
badbusinessbureau.com
www.ripoffreport.com
We are not lawyers.
We are not a collection agency.
We are Consumer Advocates.
...the victims' advocateWE are Civil and Human Rights Activists
We are a Nationwide Consumer Reporting News Agency
...by consumers, for consumers
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Another Consumers view, ....
a little harsh, unfortunately it's mostly true.
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EDitor's Suggestions on how to get your money back! ..Money that was wrongfully taken out of your bank account..
HERE IS WHAT RIP-OFF REPORT SUGGESTS YOU DO:
Go to your bank within 60 days of the charge, or as soon as you know about the charge, don't delay, and tell them that there has been fraudulent activity within your account. Explain that you wish to file a dispute, and demand that they assist you in accordance with Federal Regulation E.
According to the majority of victims interviewed by Rip-off Report, those who immediately called their banks to dispute the charges did not get very far. Many victims got the following responses from their banks: “we could not do anything for you” or “you waited too long; it has been more than 60 days”.
If the bank is says that you have waited too long, explain to them how you called their 800 number as soon as the charges were found, and were told by the bank that nothing could be done. Remind the bank that they failed to assist you properly at the 800 #, and instead, provided you with an inadequate explanation of your right to dispute. Tell the bank that it's their fault time has expired, and since they gave you the wrong info to begin with, they will just have to deal with it, take the loss and reverse the charges.
Tell them the truth; this was unauthorized and your account was NOT to be charged! Keep emphasizing how you never authorized anything! Direct them to the hundreds of victims reports that were filed on Rip-off Report.com. And if you're at the bank, walk them over to their computer and make them go to this site! If you are on the phone with them, tell them you will wait while they access this site! Either way, be persistent!
DO NOT TAKE NO FOR AN ANSWER!
Let them know nicely, that you were advised to Report them (the Bank) and this situation to the Banking Commission in your state. Since each state has a different name for the agency/controller over banks, find that name before you call or get to the bank so you can throw it in their face. The more knowledgeable you appear to be, the further you will get.
And just continue to demand the Federal Regulation E form! The bank CAN, MUST and WILL reverse the charge! But, you must be persistent; ask to speak to the supervisor or the area manager for all the branches in the state.
Let the bank personnel know you are meeting with the media later in the day, that you would much rather they do the right thing (as most other banks have) by looking at the complaints and immediately reversing the charge(s) to your account; no matter how long ago it was. Be sure to call the Media if necessary so you are telling the truth.
If you have to, be loud (but nice) in front of other customers. If you are just calling by phone, the above tactics should still work. The bank can easily fax or mail to you the Federal Regulation E dispute form.
CHARGES TO YOUR CREDIT CARD
If the charge was to your credit card (not debit card, check card, or checking account), contact the credit card company as soon as possible to request a dispute form. Consumers usually have a little longer to dispute fraudulent credit card charges (up to 6 months), but it is better to act right away. In this type of situation, credit card disputes are usually successful since fraudulent companies often won't contest the disputed charge. In rare cases, credit card companies will review disputes, but refuse to reverse the charges. If this occurs, complain to a manager and let them know you will be filing a report here.
Remember… Don't let them get away with it! Make sure they make the Rip-off Report .. The more Reports filed on a Company or individual, the more likely it is that the authorities, media and attorneys will want to take action.
And good luck… Let us know how you do!
ED Magedson – Founder, Rip-off Report.com & Author of www.ripoffrevenge.com
EDitor@ripoffreport.com
badbusinessbureau.com
www.ripoffreport.com
Don't let them get away with it.™
Make sure they make the Rip-off Report!
We are not lawyers.
We are not a collection agency.
We are Consumer Advocates.
...the victims' advocate
WE are Civil and Human Rights Activists
We are a Worldwide Consumer Reporting News Agency
...by consumers, for consumers
Why file a report here? Ripoff Report is a permanent record! Other complaint sites copy our content then remove reports for money.
