Merchant Account Underwriting Tools

Monthly Archives: April 2011

‘Because defendants offered nothing of value……”

“A Harris County jury has returned a $13.8 million verdict against a credit repair business and its owner, finding they defrauded indebted Texans and failed to register with authorities in violation of state law. The jury found that Jubilee Financial Management LLC, The Credit Card Solution (TCCS), Freedom from Debt Alliance and Robert M. Lindsey used illegal “debt invalidation” schemes that purported to help financially struggling Texans.”

“More than 700 people paid an average of $3,000 for the defendants’ fraudulent services. Because the defendants offered nothing of value – and charged thousands of dollars for the purported services – already struggling customers were worse off financially after paying TCCS. Once a customer paid TCCS, the defendants promised to help customers send “form letters” to debt collectors and credit reporting agencies. The defendants claimed that the form letters would put the recipient on notice, which TCCS claimed would ultimately benefit customers financially.”

Merchant underwriting involves the evaluation of the service or product being sold. If nothing of value is received by the cardholder, chargebacks are inevitable.

No on-line gambling here

However, since the Federal Trade Commission injunctions this week against acai berry scammers I’d like to have a way to take bets on what “businesses” they will bring to the underwriters next. Not that there aren’t hundreds of websites out there with similar phony claims, and millions of stupid consumers who will fall for them.Read More

Coulomb Media

Consumer fraud leads to acquirer loss. Listen up Underwriters. Consumers have hundreds of needs that can be met if they buy something. When it doesn’t help them become wealthy, grow hair, lose weight, avoid foreclosure, cleanse colons, or repair credit, they will want their money back. From you. 1. FTC Act, 15 U.S.C. § 45(a),Read More

It just gets worse merchant underwriters

“An officer of a St. George bank was arrested Friday morning as part of a federal criminal indictment involving the processing of illegal online gambling payments, a case that also involves prominent Utah businessman and philanthropist Jeremy Johnson.” (See previous posts). “John Campos, vice chairman of the board and part-owner of SunFirst Bank, was arrestedRead More

Ambervine…..such a nice name

Hopefully no underwriter in the world would approve an “acai berry” merchant. With the corny websites that promote the “free” trial package and the $.96 “Shipping and Handling.” Would they? Maybe they fell for the “How to get ripped in thirty days” pitch. The chargeback period is longer than that, so I’m sure they willRead More

Moneymaker Indeed!

Mucho dinero made acqui. MICHAEL BRUCE MONEYMAKER, a/k/a Bruce Moneymaker, Mike Smith, and Michael Bruce Millerd, individually, as an officer and director of the corporate defendants, and also doing business as Fortress Secured,2 DANIEL DE LA CRUZ, individually, as an officer and director of the corporate defendants, and also doing business as Fortress secured, BELFORTRead More

Merchant Bed Bug Fraud

No! Really?? Someone would open a merchant account to process phony bed bug solutions? I quake to think what the chargeback docs would look like. Please have your chargeback folks wear protective gear. “Bedbug bites are itchy and annoying. But they can bring on a more painful bite: high-priced fake treatments, which are multiplying asRead More