The Jig is Up, Guys!
Seems that a long kept secret is out. Seems like Wachovia (NYSE WB), Wells Fargo (NYSE WFC) and many other banks have gotten caught with their hands in the cookie jar. While banks have often been once removed from “illegal merchants” it seems regulators have wised up to the practice of looking the other way when it comes to bad activity.
For years, nutritional products, health care subscriptions, and many other supposed “opt-in” services have gotten away with virtual murder by charging unsuspecting clients and continuing to operate their merchant accounts with well known banks. Well, it seems as the public has gotten more frustrated over banks turning a blind eye, the government is starting to take notice of these rackets and has put the blame squarely on the once-protected banks who issue the merchant accounts.
If you ever saw a charge on your bank statement for some monthly subscription where the merchant claims you opted in but have no knowledge or memory of ever offering approval, or better yet, only offering your go ahead on a one time fee, then this has affected you. The reality is that banks have profited billions of dollars over the years by allowing merchants to exceed the legal limits by accepting merchants claims that “our policy clearly states no refunds” or my favorite “our policy clearly states there is a monthly fee”, when in reality it’s just outright merchant fraud.
I hope Congress passes laws ensuring that banks should have some level of “real” responsibility because as it stands now, while banks are removed, while consumers are somewhat removed, it’s the legitimate merchants who end up paying higher rates because banks allow this type of activity.

Comment by gemini on 11 February 2008:
Wow, looks like these guys are out for the count. Throw in the towel and get the ice ready!
Comment by lord on 11 February 2008:
I hope Congress finally gets into action, too, because this is a serious responsability for banks which they haven’t taken up at all!
Comment by star on 11 February 2008:
If you opt in for such a thing, it’s your responsibility to read the fine print. And if you’re to lazy to do so, then those things are your own responsibility!
Comment by Ronald on 12 February 2008:
I always wonder on the very many charges that occur in my bank account and now i know where is all my hard earned money going. I too agree that there should be a federal law to prevent such misuse.
Comment by Merlin on 12 February 2008:
Wells Fargo is one of those banks which allowed non-US-Residents to open bank account in United STated and many people have already deposited huge amount of money in those and many of those account have also gotten frozen.
Comment by gordon on 13 February 2008:
This is really a bad thing , where organized crime is kinda getting really corporate. In today’s world being a legitimate merchant is kinda bad thing.