HIDDEN SERVICES NOT REQUESTED, USURY AND FRAUDULENT PRACTICES
Complaint
walter kumin
Country: United States
this is to report that I have been SCAMED 226 dollars by HSBC´s Account Shield Plus for services I did not request when I signed with the 36 Month interest FREE SCAM at BEST BUY. How could the Attorney Generals of the various States allow this practice to happen to the tax paying consumers of the STATE?, Where are the FEDs when you need them?
I have spoken by BEST BUY, HSBC, and Account Shield representatives chand explained to them that I did not request the Account Shield Service, but no help was offered since it has been over 60 days since I first purchased the goods for BEST BUY.
I have copies of receipt purchases and invoices from BEST BUY but there is no record of muy purchase of such services. However, ACCT SHIELD REP assured me that there was an electronic signature that I submitted to open the account. We, my wife and I declined the Shield service to Patrick of BEST BUY Sacramento, Natomas Store during January 2011 purchase and credit card agreement.
BEST BUY has informed me that they sent every record to HSBC, so BEST BUY is out of the LOOP leaving the customer hanging.
What can the consumers do to bring the likes of HSBC and BEST BUY to the attention of the good old American Justice System?
I have spoken by BEST BUY, HSBC, and Account Shield representatives chand explained to them that I did not request the Account Shield Service, but no help was offered since it has been over 60 days since I first purchased the goods for BEST BUY.
I have copies of receipt purchases and invoices from BEST BUY but there is no record of muy purchase of such services. However, ACCT SHIELD REP assured me that there was an electronic signature that I submitted to open the account. We, my wife and I declined the Shield service to Patrick of BEST BUY Sacramento, Natomas Store during January 2011 purchase and credit card agreement.
BEST BUY has informed me that they sent every record to HSBC, so BEST BUY is out of the LOOP leaving the customer hanging.
What can the consumers do to bring the likes of HSBC and BEST BUY to the attention of the good old American Justice System?
Comments
There are a number of complaints against Best Buy and HSBC reporting fraudulent telemarketing of "credit protection" products. Complaints report finding unauthorized monthly charges for this unwanted "insurance", and problems getting HSBC to reverse the charges when disputed.
What you are reporting explains what is going on, which is fraudulent telemarketing where the telemarketer already has sufficient account information to sign you up even if you say no.
HSBC is passing customer account information to a third party telemarketer, who then calls their customers to sign them up and get authorization for these charges, possibly using deception and misrepresentation, or just outright fraud. This is known as "preacquired account information" telemarketing fraud, and the practice has produced numerous complaints of fraudulent telemarketing resulting in fraudulent charging of consumer accounts without authorization.
Basically, the bank and its partners hide behind third party telemarketers incentivized to make the "sale" by their bonus and commission structure, so many use deceptive modifications to scripts, or just falsely claim consumers "agreed" to the charges. Some complaints report receiving some call and only agreeing to receive an "information packet" about a "product", while others report charges without even any call at all. Some have reported disputing the fraudulent charges, and having some excerpt of a recording played back to them that was either unintelligible, or clearly wasn't even them.
The "product" may be offered by some other company, in some cases an insurance company. The take is split between the bank and that company, or it all goes to the bank if they "self insure". The bank claims they "know nothing", although they are often reported to actually put barriers in the way of consumers getting their money back, often routing all disputes directly back to the telemarketing call center that started the fraudulent charges in the first place, giving them another chance to "sell" to "resolve the dispute", or even just refusing to accept a fraud dispute because they are a marketing partner.
"Preacquired account information" fraud has become such a problem that FTC has specific telemarketing sales rules that apply (under TSR), such as the requirement that telemarketers record the entire call to capture all terms including any deceptive misrepresentations, and that consumers agreeing must specifically be recorded to disclose at least the last 4 digits of their account or card number after the terms of the offer are disclosed.
Even this has still done little to stop this type of telemarketing fraud, as the telemarketer may know the rules, but the consumer does not, and they are often conned into believing there is nothing they can do to get their money back by telemarketer dispute departments who falsely claim "we have a recording of your agreement".
Many of the nation's largest banks have been caught engaged in this fraudulent practice, hiding behind third party telemarketers. For example, you can find FTC or state AG lawsuits and settlements with Citi, Chase, and Discover for fraudulently marketed "credit protection insurance", "accidental death and dismemberment insurance", or similar products.
See for example, complaints against BofA and Smart Step, and reports of fraudulent telemarketing connected to other banks, here:
https://complaintwire.org/complaint/eJIBAAAAAAA/smart-step-insurance
BofA has been sued several times in class action lawsuits over fraudulently marketed credit insurance products the telemarketer allegedly sold to people who weren't even covered due to the terms of the policies. One lawsuit alleges they specifically targeted BofA Spanish speaking customers in this fraud.
The New York Attorney General went after a bunch of these scams several years ago, and shook loose settlements.
Senator Jay Rockefeller's Senate Commerce Committee held hearings on this type of consumer fraud, Shortly after, VISA and MasterCard took measures to reduce similar "pop-up" ad preacquired account information negative option fraud involving so called "membership discount clubs".
You specifically said "NO". They fraudulently charged your card anyway, without authorization, and that was no accident. They could do it because they already had all the information they needed to charge your account, before they ever called you. They called you to obtain something to hide behind to justify that charge, but whatever they might claim, they DID NOT OBTAIN AUTHORIZATION as required by FTC's TSR rules,
Send a written fraud dispute to HSBC, to their dispute address from your statement, notifying them that the charges are fraudulent, and that you did not authorized them. Mail it certified.
If they do not reverse the charges, file a complaint against HSBC with the Office of the Comptroller of the Currency, and with FTC and your state Attorney General.
Whether or not the individual employee gets a bonus is based on a store to store basis. The majority of the employees get absolutely nothing for signing customers up as it is part of our job. but management hounds us to sign people up and hold a carrot over our head that there is reward if we do really well and our job is at risk if we dont sign up enough. Currently Best Buy is more concerned with signing you up for a credit card rather then you getting you all the great electronics you want.
Anyways, I am not really sure what else to do. Maybe call them a few more times? Complain to BBB?
Sammy
and we wonder why consumer confidence is as low as it is.
I am getting a complete refund, which tells me they know it is bull. No fuss from them, they refunded me. So I can assume a bunch of BB employees still mark yes anyway.
I have to agree, even if it's in the small print so to speak and you are hurried through the application process for credit, it is a sneaky way of doing business. When I am told that I am going to have 0% interest for 18 months, I like many others believe what is promised. When you receive your monthly statement and see an additional fee added to your monthly statement, you do feel cheated.
I'd really like to see banks be right up front (large bold print that can't be missed). That's called honesty. There is nothing sneaky about honesty.
However, I must say that banks will try to add interest in one form or another. I don't know of one bank that does not charge a fee in some manner or another. For some it may be a transaction fee and then you're home free if you pay your balance within the time frame agreed to as long as you have not had a late payment.