It’s not just Flybyknight Ecommerce Services boarding male enhancement merchants. (“Not that there’s anything wrong with that” – Jerry). Its J P Morgan selling “identity Theft Protection” using allegedly “unfair and deceptive practices sales tactics to improperly pitch similar so-called products.””The most costly cases for JPMorgan center on concerns that the bank duped its credit card customers into buying products pitched as a way to shield them from identity theft.”
“The regulators are investigating reports that the bank sold credit card customers, through a third-party vendor, (we all know who) the identity-theft protection with false promises. The investigation focused partly, the people briefed on the matter said, on whether the bank or its vendor had misled customers into thinking that the product was free, mandatory and would bolster their credit score.”
“The Dodd-Frank financial overhaul law, a 2010 law that regulators are beginning to apply, emboldened federal authorities to take a tougher stance with lenders. In July, Richard Cordray, the director of the Consumer Financial Protection Bureau, warned at a public hearing that the agency under Dodd-Frank had the authority to prohibit banks from employing any “unfair, deceptive or abusive acts.” Read ACQUIRERS there.
“It doesn’t matter who is collecting the debt — unfair, deceptive or abusive practices are illegal,” Mr. Cordray said at the time.”
From: http://dealbook.nytimes.com/2013/08/27/regulators-prepare-penalties-for-jpmorgan/?_r=0
If you as a processor can’t “earmark” a billion dollars to cover potential liability for deceptive practices of your merchants, pay us just half of that to assist in your due diligence process.