See the WESH video by clicking HERE.
Police also stated that the same group ran a credit card scheme that promised to lower interest rates for a $995. upfront fee, but consumers reported that once the fee was charged, no service was performed and no refunds were given.
My question is quite simple: Is the credit card institution that provided the vendor account also responsible for being a party to this fraud? There must certainly have been many attempts by consumers to charge back the fees that were debited that should have alerted the financial companies to the potential for fraud.
Often, these scams involve some type of delay tactics being employed to allow at least 90 days to pass from the time of the original charge. Most credit cards will only allow chargebacks within that first three month window- and automatically reject them after that point.. However, common sense would say that if a company creates hundreds of chargeback attempts after that 90 day window closes- that some type of investigation should be done to ensure that consumers are not simply being swindled.
Since the vast majority of telemarketing scams involve payments made by credit card- perhaps our legislators should look at creating oversight that automatically reports high percentages of chargeback requests to state investigators- whether or not those requests are granted. The only way to effectively target scammers is to do so financially. There will always be individuals who seek to steal from others regardless of the eventual consequences. Impacting the flow of money may be a very effective way to combat these boiler room operators!