www.texasattorneygeneral.gov.
“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.