Unauthorized E-check Transaction
Complaint
Karin Marie Kendrick Esq.
Country: United States
My Mother, Mrs Alimay T. Kendrick was hospitalized for congestive heart failure from October 13, 2009 to November 3, 2009. On her 87th birthday December 18, 2009 Direct Medical services states that she authorized the to use an electronic check for $389.00. On December 23, 2009, she changed her mind and had me contact Maple First International at 1-866-3384237 and I spoke with "Trevor ID No. 183 who stated that the company would refund the money to my mother's account within 21 business days. .On January 13 2010 I spoke with Trevor again and on January 19 2010 with Rob Id No 829 to ask about the status of the refund. The both assured me that the money would be credited by January 25 or 26th 2010 .this did not happen and Wachovia Bank and reported this to Loss Management Case No. 16150151refunded the money in February. I was astonished to learn that on April 5, 2010 this same company presented another electronic check for $389.00 and had turned her account over to Payliance pnone number 1-877-892-4325 for collection . I informed them of the unauthorized transaction and they gave me a e-mail address at disputes @payliance .com. I hepled he close and reopen a new account at Wachovia on april 9, 2010. I plan to report this incidedt to the FTC, Consumer Affairs Division, Maryland Attorney General Consumer affairs Division and the Maryland State Banking and Regulatory Division
Comments
Dispute the charges as fraudulent through your bank, and follow up with a written dispute or fraud affidavit, sent to your bank's dispute address.
Discount Medical Services has complaints of fraudulent telemarketing targeted against seniors to obtain account information, which they use to run through fraudulent charges around $400 for what they allege is some "discount medical" program.
The "discount program" itself is probably fraudulent and of no value. These schemes typically promise a "discount", but if no pharmacy has agreed to be a part of the program, then where will you get your "discount" that your "membership" supposedly pays for? Why don't you call your local pharmacies, and see if any of them have heard of this outfit, and if any honor their "discount".
It is a scam, top to bottom, and you can find complaints both that accounts are being charged where consumers are not even aware they were contacted, with claims it is some "renewal" supposedly authorized "a year ago", as well as reports tied to their phone numbers of deceptive calls claiming to be with "Medicare" attempting to obtain checking account information through deception. They appear to scare or fool seniors into disclosing account information they imply is for their Medicare prescription coverage.
They appear to be preying on seniors, where they think they can run through their charges and wait out the 60 day FRB Reg. E dispute period, leaving little recourse. Ill seniors are even better, since they are easier to scare and fool, and will be less capable of disputing. Note that in your case, that is just what they did: they made worthless refund promises, then ignored you until the 60 days have passed. If you dispute within 60 days of the statement date of the statement showing the charges, your bank can reverse it. If not, what is your recourse, sue them over $400? And where would you even do that?
They may be a fraudulent telemarketing operation based in the Montreal area. There also appear to be several other similar scams over the last several years, with similar complaints and similar location, which may be the same scammers under different names. One common factor is use of a mail drop in Champlain NY, near the Canadian border.
Similar complaints:
https://complaintwire.org/Complaint.aspx/IkTAOiunqgD6NAjMSyKuCA
This seasonal pattern has shown up in connection with several other scams involving fraudulent charging.
http://www.insurancefraud.org/discount_health_plans.htm
BBB finally has a report on them, opened Feb. 2010, rated "F":
http://www.bbb.org/centralohio/business-revie ... bus-oh-70061713
"...
BBB Rating for Discount Medical Services
Based on BBB files, Discount Medical Services has a BBB Rating of F on a scale from A+ to F.
Reasons for this rating include:
•BBB concerns with the industry in which this business operates.
•2 serious complaints filed against business.
•BBB does not have sufficient information to determine how long this business has been operating.
•BBB does not have sufficient background information on this business.
...
Business Contact and Profile for Discount Medical Services
Name: Discount Medical Services
Phone: (866) 493-6921
Address: Unknown
Columbus, OH 43215
Principal: Mr. Chad Davisson, Agent
Customer Contact: Mr. Chad Davisson, Agent
File Open Date: February 2010
Type of Business: Advance Fee Brokers, Medical - Dental Discount Plans
BBB Accreditation: Discount Medical Services is not a BBB Accredited business.
Products and Services of Discount Medical Services
This company appears to be a cross-border (Canadian-based) telemarketing scam.
Customer Complaint History for Discount Medical Services
The information we've received from consumers indicates they received a telephone call from someone claiming to need their social security number to verify their participation in Medicare.
One consumer said the caller claimed to be from security telling her not to hang up or she wouldn't have health insurance anymore it would be cancelled.
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
BBB processed a total of 3 complaints about Discount Medical Services in the last 36 months, our standard reporting period. Of the total of 3 complaints closed in 36 months, 3 were closed in the last year.
These complaints concerned :
3 regarding Sales Practice Issues
These complaints were closed as:
3 Unpursuable
..."
Note how they supposedly are connected to "Columbus OH", but unknown address. Also reported to be a cross-border Canadian scam. It is common for cross-border scams to use U.S. mail drops to appear more legitimate, and to hide the trail to where they really are.
"Advance fee" scams generally involve some up front payment for some alleged product or service (often a loan), which then never materializes. They depend on creating the appearance of legitimacy, then convincing the target to disclose account information (or sometimes wire by Western Union), then when the scam becomes obvious, they are impossible to find.
These cons are using the banking payment processing systems, so they have to have a payment processor willing to assist them and look the other way when disputes for fraudulent charges show up. Access to making phone check charges to checking accounts has been a continuing pattern for this scam, back through its earlier names.
File complaints with FTC and www.occ.gov
These are con artists, with access to the banking system.
"...
The information we've received from consumers indicates they received a telephone call from someone claiming to need their social security number to verify their participation in Medicare.
One consumer said the caller claimed to be from security telling her not to hang up or she wouldn't have health insurance anymore it would be cancelled.
..."
This scam outfit has a number of reports indicating that they challenge consumer fraud disputes, attempting to convince bank employees that consumers "authorized" their fraudulent charges, and that charges for their worthless product shouldn't be reversed. Apparently, there are enough bank employees untrained and incompetent enough that they don't recognize fraud when they see it, and they can be fooled into handing over their customer's money even when the charges are disputed. If it didn't work, they wouldn't be doing it.
Yet, although they claim to be "legitimate", BBB can't find where they are. They are hiding, which is another sign of a fraudulent scam.
http://www.sourceexperts.com/outsourcing.cfm/ ... onal/pid/155249
Related information, Canadian based travel scam.
https://800notes.com/Phone.aspx/1-866-338-4237
"Former Quest Vacations Employee replies to Scam attempt
8 Aug 2009First of all, you didn't win anything. You were "selected to receive" the $14,000 travel package. They selected your name from a calling list, called you and told you that you were "selected" (even though everyone on the calling list is "selected"). They will never use the word "win" in their conversations. You didn't win anything, you are "selected" to receive a discounted travel package. However, they are not located in Carlsbad, California as they may tell you on the phone. They are actually calling you from Canada. The vacation packages are legitimate.
Quest Vacations Employee
22 Sep 2009The vacation packages are actually just coupons. You dont get anything other than a set of coupons and those coupons aren't worth anything. The company gets them for free and sells them for $598. ITS A SCAM, DONT BE FOOLED. They are actually located at 560 Beatty St, Vancouver BC, Canada. Suite 110. The actual company name is "integrity marketing". Fancy name, considering what theyre doing to helpless senior citizens. The company owner is Jason Jantz. All of the people who call you and talk to you are not using their real names. The company supervisor "John Roberts" is actually a guy named "Michael Smith". Hope this helps, someone needs to put an end to this.Caller: Quest Vacations
..."
Note that "Sun Quest Marketing" shows up in connection with a phone number also connected to Discount Medical Service, 866-442-3943, and reported in connection with several frauds. BBB shows an address in Florida, another in BC, and an address in Champlain NY known to be a mail drop near the Canadian border also known to have been used by several of the other Canadian-based "medical discount" scams.
Multiple types of scams are reported: "vacation and travel" scams, "discount medical" scams, and "government grant" scams. All are basically "advance fee" cramming scams, preferentially targetting the elderly.
Note that "phone checks" are reported cashed at two widely separated banks, one in Huntington, New Brunswick, Canada, and another in Kentucky, widely separated from any of the 3 addresses reported in connection with "Quest Marketing".
They are working hard to hide their location.
https://complaintwire.org/Complaint.aspx/IkTAOiunqgD6NAjMSyKuCA
Have since closed account but has definitely been an issue trying to get the bank to credit it back. They will not let me know if they resolved it since they are now the victim......Unfortunately, we are all victims.
Back up your dispute with a notarized fraud affidavit. You should also file fraud complaints with FTC, and your state Attorney General.
If you have problems with your bank returning the fraudulently stolen funds, file a complaint against them with the Office of the Comptroller of the Currency, at www.occ.gov
FTC recently settled with a payment processor, Landmark Clearing, caught aiding and abetting these schemes.
https://complaintwire.org/Complaint.aspx/PLhoHHSPzQCJOgjN4GUuQQ
Immediately dispute fraudulent charges directly with your bank, and close the account to block additional fraud. Follow up with a fraud affidavit.
File fraud complaints with FTC and OCC (Office of the Comptroller of the Currency).