FTC vs. Datatech

Discussion in 'Credit Talk' started by ontrack, Aug 25, 2005.

  1. ontrack

    ontrack Well-Known Member

    Pattern similar to many other scam businesses:

    Fraudulent sale, targetting less sophisticated marks (small business), product of little value (no actual financial risk from no-pays), amount in dispute too small to cover attorney, jurisdictional barriers (Canadian "business" solely targetting US marks), threat to damage credit, other illegal activity (failure to pay payroll taxes), assets that might cover redress dissappeared long ago (not viable as a legal business).

    http://www.ftc.gov/opa/2005/08/datatech.htm

    The threat to damage credit is credible as long as the CRAs accept all reports at face value, regardless of source. This scam would not work in the absence of the threat of credit reporting, as the scammers have no effective access to the courts to collect, for the same reason as the victims.
     

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