....Ontrack.... would you happen to know any more about which CRAs the FTC fined and when? Even if it's approximations let me know any details you have and I can look it up. Thanks very much.
All 3 CRAs settled here: http://www.ftc.gov/opa/2000/01/busysignal.htm Here is a later settlement: http://www.ftc.gov/opa/2003/07/equifax.htm The above are links to the FTC settlement press releases. The press releases have links to the original complaints. I am not sure if there were later settlements with the other CRAs.
Have you received check rejections (and rejection stubs) allegedly due to Telecheck from multiple merchants? Is there an intermediate check guarantee company the merchants work thru that then uses Telecheck information, or do the merchants deal directly with part of Telecheck?
Yes I have and this is coming directly from Telecheck. We are in the discovery phase of the lawsuit, in Federal Court, and they STILL have not provided me with an explaination for all of the code 3's and incorrect credit reports they gave to the merchants. I'm sure I'm not the only person who has been treated this way and hopefully, this lawsuit will pave the way from some programatic and reporting changes and corrections at Telecheck. We'll see.
Telecheck probably hasn't been the focus of as much compliance litigation, since most such activity is centered around the big 3 CRAs. Credit damage is potentially far more damaging, since it can block transactions of many types (extensions of credit, mortgages, renting, insurance) and the dollar cost of interfering with a mortgage transaction are far higher. There have been some cases, however, involving fraudulently opened checking accounts, that have gone to litigation following incompetent or non-compliant handling by check guarantee companies.
I guess the impact of non-compliance with the FCRA on the consumer (and the merchant!!!!) depends on how you look at it. True the "big 3" having wrong info or procedures could affect my ability to buy a house or a car, but I don't buy a house or a car every day...however....I have five children and do need to clothe, feed and take care of all of their daily needs. Telecheck makes money off of over 300,000 merchants world wide by giving them credit reports and in my case, wrong credit reports. So, my trips to Wal-mart, Payless Shoes, Albertsons, Eckered, Pizza Hut, my local Dr's office (yes, they use Telecheck)...on and on and on....are no more until this is resolved.
The more places you are erroneously turned down, the more your damages from their failure to correct. You shouldn't be using checks anyway, other than to mail in bill payments. Check crime is too easy (that is why the merchants use Telecheck), and your own legal protections are weak. You think you might have problems if some clerk grabbed your CC info? What if they just noted down your checking account info and passed it to their ex-con boyfriend? What if he altered the payee and amount, and cashed it? What if he washed the check and made it out to cash?
I was wondering...I've read other posts on the board that say not to write checks. Is this strictly because of safety, or is there another reason?
My view is due to both convenience and safety. If you keep your checkbook home and send your payments out from there, you are less likely to lose it or have it stolen, along with the check register you need to track your current balance and payments made. Your checks are used only to a smaller number of companies, mainly utilities and banks, so your exposure to loss is limited by not using it with companies you don't know. Your protections under federal law are stronger with CCs, limiting unauthorized charge losses to $50, and usually not even that. In addition, you have dispute protections, and since it is the bank's money at risk up front, they are more likely to pro-actively guard against fraudulent activity. You thus have better loss protection when making retail purchases or online purchases when using CCs. the merchants know this, and are more likely to resolve disputes or they won't get paid. They also know that if they generate too many disputed charges they can have their CC processing access cut off, or their fee raised. In addition, by using credit, you build up your credit rating and borrowing ability, which you do not do with a checking account. For some things you generally don't use CCs, such as paying rent or mortgages, but for others, such as renting hotel rooms, booking airline flights, or booking rental cars, you are at a disadvantage using anything but CCs. Book a hotel or rental car on your debit card, and you will find a block on your checking account that might take several days to remove, and possibly bounce your checks in the mean time, even though there is enough money to both cover your checks and pay the hotel or rental car company. With CCs that you pay off every month, you have credit float, or the ability to pay for things on credit without paying interest as long as you pay your bill in full. With debit card use for hotel or car rental use, you actually may have negative float, where the funds in your account are locked up and not useable, even though they are yours. Don't stay in relationships where your partner beats you up. Same for finances. Have a big brother. Live on the good side of town.
Report on local news station I had mentioned earlier in this thread that I would post a link to any news coverage about my situation, and here it is http://www.wsmv.com/money/14052563/detail.html I should mention that the heading "Service Blamed for Bouncing 36 Checks" is inaccurate, it shoud be "Service Blamed for Rejecting 36 Checks". There is a video link on that page if you want to watch the video. Telecheck was denied big time on summary judgement, so the case will go to trial next month. The reporter who covered the story asked if she could share this information with a national news producer because the issues mentioned in her story only affected Tennesseans, while there are many other issues that affect our entire country. Her spot also had a time limit, so I told her I would cooperate with a national report, however, between us girls, I really am a private person and don't like to be on TV. After reading the 7500 pages of info from the Houston BBB I realize this is about helping a lot of people (not just me) and just like David vs Goliath, I've got to stand up and fight the giant. I guess they got their shareholders out just in time. I also met personally with our state Attorney General and another department head and gave them the information I was allowed to and I've contacted the FTC. Hopefully they will come to the trial. I don't know how many of you out there are "praying people" but I could sure use some, and so could all of the people who have signed up to help me on this case. Practically everyone of them has received some kind of old collection notice, going back as far as 2002, so it look like Goliath is doing all they can to prevent people from coming forward. By the way, they're on their 3rd law firm. Let's all agree, the strident days of Telecheck are over.
Wow, two years later and you still haven't gone to trial. And wasn't it already almost two years when you first posted? The wheels of justice turn slowly, it seems.
Yes, and guess which side has been causing the delays? Answer: the one who is on their third law firm (which incidentially, I used to work for as their credit/collections manager, how funny is that?). Actually, they are just using the court system to harrass me, but that's okay, because this will just make the jury very angry. My checks started to be declined in 2003, so for my family and I, this has been going on for over 5 years. Really, I think this case is why they sold the company. A majority of the discovery was concluded by Nov. of 06, and someone from KKR approached them in Dec. of 06. Then, when you read all of the articles about insider trading and they way this deal was handled (just do a google search) you get a good idea of how they operate. This is just speculation on my part, but I think once the merchants hear about how Telecheck operates behind the scenes they won't be very happy at all. Time will tell.
I think checks are on their way out. I've already seen "checkless" checking accounts. Personally I write very few, mostly for bills and 1 local grocery store that lets you cash checks when the ATM isn't convenient.
And that's exactly what First Data (Telecheck's parent company) want's all of us to do because they are the world's leading PROCESSOR OF CREDIT CARDS. If someone pays by check at a guarantee merchant and the check is bad, Telecheck loses money. If someone pays by credit card and it is bad, First Data doesn't care because they were paid for PROCESSING the credit card, they didn't guarantee payment like the banks did. Bottom line, they want you to use plastic. People with trust accounts set up (usually our disabled brothers and sisters) need to write checks out of their trust fund and need companies like Telecehck to give fair and accurate credit reports. The FCRA was established for situations exactly like this. By the way, statistically there are more checks being written now, more than ever (that's because there are more people) however, the ratio between check writing vs credit cards puts credit card usage at the top. Not that it matters anyway, once again, if your going to run a business that's governed by the FCRA, then follow the law.
Thanks. I'm a pretty tough cookie, 45, 5 children, not a lot I haven't seen in my lifetime, but this takes the cake. Evil and greed like never before. Please, please, please, remember those people who have either testified or submitted affidavits. I can't give the details but they have been harassed and investigated to the nth degree. Fortunately, my husband is an attorney and his firm realizes that we need to help them as well. There are also a lot of people (store clerks) who realized what was going on but they are afraid to testify. Can't say that I blame them. If any of you are in the Nashville area in Feburary and want to watch the trial, let me know. 5 years of info should take about a week. Patty
