Deducted $449.25 from my Mother's Bank Account
Complaint
Bruce A and Ruth D Schenk
Country: United States
On Friday, May 13, 2011, my Mother received a notice in the mail from her bank stating that she was overdrawn. Immediately my Mother, husband & I went to the bank to check into this situation and was told that Discount Medical Benefits had withdrew $449.25 from my mother's account without her authorization using only her phone number. The bank put an immediate stop on this payment and also sent notice to their fraud department. This company needs to be stopped immediately. This is a telemarketing company and gave the name of Discount Medical Benfits, address-1329 State Road, Champlain, NY 12919, phone 866-442-3943. The bank called this company while we were there and they wouldn't give out a phone number; however, I have obtained it through their website.
Comments
https://complaintwire.org/Complaint.aspx/IkTAOiunqgD6NAjMSyKuCA
https://complaintwire.org/Complaint.aspx/vZzqcrGrxgDNiQjM2rsZZQ
https://complaintwire.org/Complaint.aspx/-GvNRaM3yABR_gjMtjwn1g
This is a cross-border (Canadian) fraudulent telemarketing scam, located in the Montreal area.
A number of complaints have reported that they make deceptive calls to seniors, selling some worthless "discount drug plan" that no pharmacy accepts. Other complaints have reported calls claiming to be "from Medicare", asking for bank account information or "your benefits will be cut off".
They are basically a phishing scam, trying to get account information out of seniors, to cram these charges under the pretext of this "discount plan".
Contact the bank immediately to dispute the charges as fraudulent, and close the account due to fraud to prevent additional fraudulent charges. Follow up with a written dispute or fraud affidavit sent to your bank's dispute address.
File fraud complaints with FTC, your state Attorney General, the New York Attorney General and U.S. Postal Inspector (the Champlain NY address is a mail drop/forwarder commonly used by Canadian scams), and the RCMP.
That same deceptive phishing line has been reported by others. They attempt to scare seniors into disclosing account information, telling them they need it or their "benefits will be cut off". Scum.
They are nothing but a fraudulent telemarketer selling a worthless "discount card" that no pharmacy actually takes.
The payment processor has been reported to assist them in this scam, with their stretched out "refund" promises to string you along past the FRB Reg. E dispute period.
Dispute charges as FRAUDULENT through your bank. Your bank can directly reverse them. Close the account due to fraud to prevent additional fraudulent charges.
File fraud complaints with FTC, your state Attorney General, the New York Attorney General, and at www.ic3.gov
This woman simply asked my mother to verify her bank account number over the phone and by simply saying "yes" it authorized this slimeball company to withdrawl $447.35 from her account. Now trying to get that 21 days refund is turning out to be a very long process. That was March 18, 2011 and as of June 24, 2011 she has yet to recieve it. Please warn all your loved ones.
In your case, it looks like they have done just that, since even though the SOL for suing on a fraudulent bank charge is 1 year, they know no one will ever sue them over $450, when they are hiding in Canada.
ALWAYS file a fraud dispute with your bank. Your bank can reverse disputed charges if you dispute within 60 days of the statement date of the statement showing the disputed charges. In addition, close the account due to fraud, to prevent additional fraudulent charges, and follow up with a written fraud affidavit sent to your bank.
As this also involves theft and extortion through criminal elder abuse, contact FTC and your local DA to report. Also report to RCMP in Canada.
Fraudulent telemarketers sell sucker lists to other scams.
Contacting the "payment processor" just connects you with a call center supporting the fraudulent scheme, who will also attempt to delay you from filing a fraud dispute through your bank.
If you let them run out your 60 day dispute period, measured from the statement date of the stateement showing the fraudulent charge, you will be stuck, as this small charges fraud is not economically practical to sue to recover.
File a fraud dispute with your bank. block the card number or close the account to prevent additional fraud, and follow up with a fraud affidavit to document the fraud.
Then file fraud complaints with FTC, your state Attorney General, and at www.ic3.gov
https://800notes.com/Phone.aspx/1-866-304-2401
They are probably located in Canada.
The scammer's payment processor is reported to be in on the scam.
Thank you.
Any information will be appreciated.
Patrick Evans
Attorney at Law
Huntington Beach, CA
(714) 594-5722
lawyerpatrick@hotmail.com
File a fraud dispute with your bank, close the account or block the card number, and follow up with a written fraud affidavit.
Also file bank theft complaints with FTC, your state AG, and ;the Secret Service.
https://complaintwire.org/Complaint.aspx/yRSuUqTLjAC18AjOfrPHlg
https://complaintwire.org/Complaint.aspx/CH-6SVffnwD_JAjMqiGfQQ
https://complaintwire.org/Complaint.aspx/-GvNRaM3yABR_gjMtjwn1g
https://complaintwire.org/Complaint.aspx/AK1EDtDcfwCL6gjKScTWrw
https://complaintwire.org/Complaint.aspx/7TDzQMyEwgCjoAjKC7iO8Q
https://complaintwire.org/Complaint.aspx/9WWJPigZuwAewgjKXxMSeg
This is most likely a cross border fraudulent telemarketing scam, probably using call centers in the Montreal area. Similar consumer complaints have shown up for several years, although the business names have changed several times, the MO is generally the same. The amount taken has risen over the years from around $300 to its current level.
Note that consumers report a range of fraudulent calls associated with numbers engaged in this type of Canadian based phony "medical discount" scam. Complaints alleged calls claiming to be from "Medicare" threatening to cut of benefits if account information is not disclosed, claiming to be with "your pharmacy", even claiming to be the "IRS". Many complaints are reporting fraudulent charges to parent's accounts.
It appears that the various reported payment processors (they have changed several times) are in on the scam, as consumers report that on disputing through their bank and being conference called with the payment processor, they claimed the charge was authorized by a phone recording. Based on the level of fraud, the payment processor would have to be aware of the fraudulent practices of their client.
This scam generally uses mail drops in Champlain NY, just across the border from Canada.
They keep changing their names, so some of the older information drops off BBB reports after 3 years. You might contact Buffalo BBB, FTC, or RCMP, for further information.
http://www.ftc.gov/opa/2012/01/landmark.shtm
"For Release: 01/05/2012
FTC Action Bans Payment Processor from Using a Novel Payment Method to Debit Accounts
Allegedly Debited Millions of Dollars from Consumers' Bank Accounts Without Their Consent
...
Payment processors provide merchants with the ability to obtain customer payments for products and services via electronic banking. According to the FTC's complaint against Landmark Clearing, Inc., Larry Wubbena, and Eric Loehr, the defendants used a relatively new payment method called "" to give merchants access to consumer bank accounts. From the fall of 2008 until the spring of 2011, Landmark allegedly used remotely created payment orders to debit, or attempt to debit, millions of dollars from consumers' accounts without their consent. The FTC charged that in many instances Landmark debited consumers who had never heard of Landmark or its client merchants, had never gone to any of the merchants' websites, and had never knowingly agreed to purchase products or services from the merchants.
...
According to the FTC, remotely created payment orders are created by entering a consumer's name and bank account information into an electronic form and are processed like an ordinary paper check. When printed, remotely created payment orders look like regular bank checks, but instead of having the account holder's signature, they bear a statement such as "Authorized by Account Holder" or "Signature on File." Federal banking regulations require the creator of a remotely created payment order to have the express authorization of a consumer to process the debit. Unlike some payment mechanisms, such as credit cards, remotely created payment orders are not subject to significant oversight and monitoring, making them vulnerable to abuse. As a result, the FTC alleges, they have become a particularly attractive payment method for merchants and processors engaged in fraud and unauthorized debiting.
..."
They run through charges as these RCCs or "remotely created checks", just as in the FTC's complaint against Landmark Clearing.
There apparently exist various shady payment processors willing to run through fraudulent charges for these scam "medical insurance" telemarketers, accepting chargeback rates in the 70% to 80% range (compared to around 2.5% that would get most merchants cut off). That alone says the payment processors are in on the scam, fully aware that the telemarketers are basically stealing money. Most normal merchants selling real products could never survive the high chargeback fees resulting from those high rates of chargebacks, which also says that the fraudulent charges are all profit, i.e. there is no actual product being sold that has any cost to the seller.
This is entirely a scam, aimed at defrauding seniors, and reported to use deceptive scare tactics to get account information from them. FTC and complaint reports also indicate they may be running through charges without even any consumer contact at all, so the telemarketing "clients" may be buying and selling sucker lists complete with phone numbers and bank account nubmers, then using them just to make deceiving and harassing calls to try to get something they can claim is an "authorization", but running through some charges even without it.
Fraudulent telemarketing and fradulent charges for various types of "insurance", "id theft protection", and "medical discount plans", including a report the charge was run through Landmark Clearing, subject of the FTC lawsuit and settlement.
https://800notes.com/Phone.aspx/1-866-395-2019
"Sandy in Granger, IN
9 Jan 2009
My mother's bank account has had two draws taken from it, each for $349. Here's what I've been able to find so far:
Checks are cleared by Landmark Clearing, 5720 LBJ Freeway, Suite 325, Dallas, TX 75240 888-886-2393. I called them and they told me this number belongs to: Master Leading Digital, Peter Mahoney, 1049 Cherokee Road, #4, Louisville, KY 40204. No such person exists, but there is a cheap rent apartment complex at that location. I called Louisville Police and they will not do anything to help. I'll be driving through that neighborhood next week and will stop by for a visit - with an armed escort. Wish me luck.
...
HELENA R FLEEHART replies to Sandy in Granger, IN
27 Apr 2011
I READ YOUR POST AND WE ARE IN THE SAME BOAT I beleave that we have run into the same people my husband and I got a call saying that they were with medicare and that for a one time fee of 359.00 that we would get life time insurance coverage and have also learned a few things that you might want to now I would like to talk with you about this matter as we are both victums of this scam and they also have other phone numbers as well I can give you what I have and we can work together on this if you want to please call me at 870-307-0085 or my cell phone 870-710-1584. please call me soon and when you call tell me it is in regaurds to this matter thanks I hope we can work together to stop this and get our money back than you yours truly helena r fleehart.
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Obietta
1 Apr 2011
3rd Party Customer Service supposed to be Medical Benefits Services. They took $359 from my account claiming it was a one time charge for medical benefits. They made it seem like it was from Medi-cal or Medi-care and that I would have all of my medical taken care of. Off to the bank and Police station to file a report.Caller: medical Benefits Services and 3rd Party Customer Service.
...
Concerned Banker
13 Apr 2011
One of our customers received a call related to telemarketing and how to stop junk mail and was somehow duped into providing his checking account information.
Today we received a Remotely Created Check (RCC) from EC Processing LLC in the amount of $387. The payee was "Secure Med Group 866-913-0623". The RCC also included the following:
Memo 210143 Credit to: 866-395-2019
This RCC was not authorized. By the way, anyone who has been victimized should be aware that your bank (the paying bank) may submit an adjustment request for a remotely created check (RCC) that has been reported as unauthorized by the person on whom the RCC is drawn provided that the certain conditions are met. The adjustment request must be submitted within 90 calendar days. The customer must provide a written statement asserting under oath that the RCC was unauthorized.
In other words: If an unauthorized RCC has been paid on your account, you must contact your bank ASAP. They know what to do, and they can get your money back.Caller: Secure Med Group
Call Type: Telemarketer
..."
EC Processing's own website has a link to the FTC settlement with Landmark.
http://www.ecprocessingllc.com/about/
"...
FTC Consumer Press Release
FTC Action Bans Payment Processor from Using a Novel Payment Method to Debit Accounts
Membership Reward Service Aimed at College Savers Settles FTC Charges That Its 'TurboSaver Toolbar' Feature Deceptively Collected Consumers' Personal Information
FTC Sends Biennial Report to Congress on the National Do Not Call Registry
..."