FRAUDULENT CHARGES

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• 0

  tj

  10 Mar 2009

  This is a common scam in the "health products" "industry".  "Free trial" offers are used to lure consumers into parting with their account information, "for shipping and handling", so that much higher charges can be made for "automatic shipments" before they can be cancelled.  The automatic shipment terms are often hidden in fine print at the bottom of long webpages, on links to other pages, only partly disclosed in sripts read by fast talking phone personel, or in an insert in the initial shipment, which arrives after the "cancellation date".  
  
  The pattern is so common and pervasive it can only be the result of deliberate intentional deception.
  
  Here is their BBB report, rating them an "F" for failing to respond to some consumer complaints.  Note that they have 117 complaint in less than a year, primarily in "advertising", "billing", "sales practices", "delivery", "customer service", and "refund", which would all be consistent with making unauthorized fraudulent charges.
  
  http://dallas.bbb.org/WWWRoot/Report.aspx?site=50&bbb=0875&firm=90115166
  
  Immediately contact your bank to dispute all unauthorized or fraudulent charges, and close the account to prevent future fraud.  Follow up with your bank dispute by sending your dispute in writing to the dispute address on your statements, and make sure you send it so that your bank gets it in less than 60 days from the statement date showing the dispute, to preserve your FRB Reg. E or FCBA dispute rights.
  
  Note that it is important to send your dispute to your bank IN WRITING, to the address for disputes, and within 60 days of the statement date showing the fraudulent charges, in order to invoke your federal dispute rights.  If you fail to do this, your bank is off the hook.  If you follow the requirements of FCBA, your bank is required to investigate disputed charges, and if they fail to do so, you are not responsible for the first $50 of disputed charges even if you did owe them.  
  
  To substantiate your dispute, file a police complaint for credit card fraud, and send a copy of the police report with your dispute.  Contact BBB to file a complaint and check on the details of other complaints.  Then contact the Texas Attorney General, who has recemtly taken action to shut down a similar scam.
  
  Include any details of other fraud allegations you obtain from BBB or the Texas AG.
  
  If this doesn't get your money refunded, file a complaint with OCC against Citi.  Alternatively, you can sue Citi in place of the merchant, in small claims court.
  
  The Texas AG recently penalized another similar scam based in Texas, announced here:
  http://www.oag.state.tx.us/oagNews/release.php?id=2843
  
  "Tuesday, February 17, 2009
  
  Online Weight Loss, Skin Care Retailer Agrees To Cease Unlawful Conduct
  Momentum Direct failed to cancel orders, withdrew unauthorized funds from bank accounts
  
  HOUSTON – Texas Attorney General Greg Abbott today resolved the state’s enforcement action against online weight loss and skin care products retailer, Momentum Direct, L.L.C. Last September, the state charged the defendant with unlawfully shipping unsolicited products to customers, failing to cancel customers’ orders and debiting customers’ bank accounts without their permission. Under today’s agreement, Momentum Direct and its owners will pay $150,000 in restitution and remain subject to an injunction that prohibits similar unlawful conduct in the future.
  
  Momentum Direct has already paid $100,000 in restitution to its customers. With today’s agreement, an additional $50,000 will be made available to compensate purchasers who were harmed by the defendant’s unlawful conduct.
  
  According to the state’s enforcement action, Momentum Direct and its owners, Robert B. and Christopher M. Jones of Magnolia, made unauthorized bank account withdrawals from customers who attempted to cancel their online orders. The defendants also shipped products and issued invoices for products that the customers never actually wanted to purchase.
  
  Consumers filed more than 600 complaints against Momentum Direct with the Better Business Bureau, and more than 40 with the Office of the Attorney General. The bulk of complaints indicated a systematic scheme wherein the defendant refused to honor cancellation requests. Others complained the company failed to provide promised refunds and some were sent and billed for completely unsolicited products.
  ..."

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• 0

  mike  

  5 Apr 2009

  If I missed the "60 days",do I still have chance to dispute fraudulent credit card charge with credit card company.

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