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.
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Only call this number to handle these issues...Executive Customer Relations general line: 704-386-5687.
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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.
Comment by Bruce Scott on 8 August 2008:
I found out the hard way. I started with my bank in 1988 Visa and Master card. I updated in 1995 and haven’t been updated ,2008. I have done all my transactions the same call in for verification an all amounts. I took a credit card sale from a customer over the internet.I processed the number by calling in to my merchant account people. They oked the card. I called back a few days later to my bank. The lady told me the money was there and it was ok. Long story I orderd,I sent the merchandise to customer. Two months later my bank said I had to come and take out a loan and pay it back. Even though the oked it and told me it was good.
I have been taken to court and sued by my bank who stated they were NOT part of Visa but just a transferer of paper work. I’m about to lose my shop. And have to pay for merchandise I don’t have . I’m am 57 years old and will be paying for this mess clear through my socalled golden years.
Comment by Bruce Scott on 8 August 2008:
The biig corporations have safe guards to oprotect themselves. Not the merchant. They have that everything is ok until it goes bad for them and then it is your falt.A simple phone call would have ended all of this but My Bank who said they were not part of Viisa , Or Visa themselves didn’t call me until two months later.There was proff they new about it in 10days after but elected not to say anything.
Keep on your toes and hope thegovernment makes them accountable.
Comment by Bruce Scott on 8 August 2008:
The biig corporations have safe guards to protect themselves. Not the merchant. They have that everything is ok until it goes bad for them and then it is your falt.A simple phone call would have Keep on your toes and hope the government makes them accountable.