• Report: #877228

Complaint Review: West America Bank/Redwood merchant services

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  • Submitted: Wed, May 02, 2012
  • Updated: Mon, October 29, 2012

  • Reported By: Greg L — lynnwood Washington United States of America
West America Bank/Redwood merchant services
3750 westwind blvd #210 santa rosa, California United States of America

West America Bank/Redwood merchant services Breach of contract Illegal seizure of funds Multiple lies santa rosa , California

*REBUTTAL Owner of company: Follow Up

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On March 21st 2012 I was approved for a merchant account with redwood merchant services westamerica bank via fastcharge.com I started processing credit cards the next day, march 22nd 2012. From March 22nd to April 14th I charged a total of 1057 credit cards in the amount of $51,960. On April 13th 2012 redwood merchant services westamerica bank seized all credited funds to my bank account and the all of the batches that had not yet credited. I want to point out I was still able to charge people credit cards until April 14th 2012 even though they had seized all of my credited funds. Thus causing me more problems. I contacted redwood merchant services westamerica bank on April 16th 2012 regarding the seizure of my funds and was told by Shari that all I needed to do was produce tracking numbers for all of the orders I had processed. Which I did within an hour of her request. I was then told I needed the last four numbers of all the credit cards I had processed to aid them in putting the tracking number with the customers. Again I provided Shari with this documentation within an hours time. I was then told by Shari that it would be the next day, April 17th 2012, before anything could be done. I then called Shari on April 17th and was notified of 8 retrievals they received and that was the real reason for the seaizure of my funds. She then said I would have to provide the invoice, tracking number, last four of the credit card number, and an email from the customers who had filed a dispute stating they had received their order and that they were dropping their dispute with the bank. Well this I did and was successful contacting 5 of the customers who had filed a dispute and was able to get them to write me an email stating that they had received their orders and that they were dropping their dispute with their banks. All of this I faxed to Shari. This all took place between April 16th and April 30th. In the interim 2 more retrievals came through for which I provided all the information that was asked of me to prove I had in fact sent these people their orders. In all there are 10 retrieval/chargbacks out of 1057 orders and the agreement I signed states that they do not have the right to even visit the possiblity of seizing my funds until I have passed the 1% retrieval/chargeback threshold within a 30 day period. I have on more than one occassion been lied to. Starting at the beginning when I first called about the seizure of my funds when I was told by Shari that they would be happy to return my funds after I provide them the tracking information. Up until April 27th 2012 when Shari told me they would be more than likely re-instating my account and issuing a refund of the seized funds today May 1st. Instead, I was told today, May 1st, that they are canceling my account and holding my funds for 180 days. I have since gone online and found several other similar complaints against this bank. One suggested filing a complaint here, and here it is. I have been treated very poorly by Shari and lied to by Shari on multiple occassions.

This report was posted on Ripoff Report on 05/02/2012 01:22 PM and is a permanent record located here: http://www.ripoffreport.com/r/West-America-BankRedwood-merchant-services/santa-rosa-California-95403/West-America-BankRedwood-merchant-services-Breach-of-contract-Illegal-seizure-of-funds-M-877228. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 0Consumer 1Employee/Owner
Updates & Rebuttals

#1 REBUTTAL Owner of company

Follow Up

AUTHOR: Theartofwar - (U.S.A.)

Ok, I received 75% of the seized funds 191 days after they took the money from my account. I contacted them about why they are holding 25% of the seized funds, but they could not provide answer, except that it was in the agreement I signed.

Well I contacted fastcharge.com who was the gateway provider and the company who provided the agreement and they informed me there was nothing in my agreement that states that they could withhold 25% past the 180 day period. In fact, they do not have any such agreement in any of their contracts.

I also contacted some other gateway companys to see if this was a standard practice in these cases and not one of them said they provide a contract with such a stipulation. This was simply them trying to hold my money and invest it to make more profits off of my funds. They say it is put in an bank account until the 180 days are up. But when I requested information about this account I was simply ignored. Imagine how much money they would make investing this money. Not to mention all the other people theyve done this to.  
It would translate into millions.

In addition to all of this, even though my account was closed they continued to charge me the monthly fees of someone who has an open account with them. It has now been 195 days that they have held at least some of my funds, which by all accounts should be a breach on there part of the contract. I shouldve had all of my funds returned october 14th, 180 days after they initially seized my funds. I contacted the proper enforcement agencies and they dont care. Apparently these large banks are allowed to violate contracts without repercussions.

I have never been, at any point, in breach of my contract. And I challenge redwood to prove otherwise right here. The cold hard truth is that these banks are allowed to break the law with impunity.

The really scarey thing is that the bank enforcement agencies dont care. I filed reports, they replied that they were within their rights to seize my funds, but clearly that is wrong. They say I exceeded the chargeback threshold, and if the bank enforcement agency wouldve done their job they wouldve seen I was in no way in violation of any part of my contract, including exceeding my chargeback threshold. in the end there were two chargebacks out of 1057 orders. And I have proof the two people who filed chargebacks received their orders, but none of that matters.

Finally, I have the IRS harassing me for their cut and I have to keep making excuses for redwoods "mistakes" Theyre at the point where theyve started threatening to audit me.

To any lawyers considering a class action lawsuit against this company for ANY these reasons I have stated, please contact me. I would love some payback! I dont want money, I want them held accountable. And I have plenty of evidence to provide. How scarey is that these large banks are allowed to operate this way? It could happen to you! Stay away from redwood like the plague!

Good luck and do your homework before you open a merchant account. Because its quite obvious these banks are allowed to operate outside the law. My contract meant nothing, they were allowed to do whatever they wanted and there is no one who cares. 
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