Arizona Bank problems

Arizona

I had an Online business that I had to close. Cardservice International is posting numerous chargebacks against my business bank account and daily. There are no funds in the Bank account to cover the chargebacks and the bank is charging me numerous NSF fees that they are attacting to the account. Card Service International I hitting the account every day with electronic checks even though I have told them to stop as the account is empty of funds. I cannot close the bank account until all of these fees are paid which I cannot do at this time.
This is building at the rate of 100.00 per day and I am lost for a solution.
Please advise as to what I can do and what the potential outcome could be. I don't want to go to jail over this.....

[Ladynred]

You may not go to jail, there is no debtor's prison in the US.

There isn't much you can do at all, really, unless you want to file for bankruptcy. If you made no provisions or statements that membership fees were non-refundable, then you're on the hook with people demanding their money back. The bank is honoring the checks and charging you for it.. so its a mounting debt. That debt could be discharged in bankrtupcty, but how would you know how much to file against ?? How many members are going to ask for their money back ? Then you add on all those NSF fees... ouch !

Unfortunately, your best course of action is to find some money to pay these people and the bank.

I did post on the site that the memebership was non refundable after 15 days.
We are talking about 125 members at 33.00- 60.00 per
I am scared that with Cardservices International posting electronic checks on the account daily that there will be criminal charges against me for these electronic checks going NSF

[JETX]

"I did post on the site that the memebership was non refundable after 15 days."

Sorry, but that isn't binding.

1) When you signed your merchant agreement with CardServices, you agreed to be responsible for ANY charge-backs against your account. That is what is 'biting' you now.

2) The right for a consumer to charge-back (dispute a charge) is given to them by federal law, the FCBA (Fair Credit Billing Act). This gives the consumer the right to 'reverse' the charge if certain conditions apply. And one of them is that they notify the card issuer of the dispute within 60 days of receiving the charge. Simply, this means that the issuer could 'hold' the charge to the next billing cycle (max 30 days), plus the consumer has 60 days, plus the issuer then has another 30 days to investigate.... but must resolve the matter within two billing cycles or 90 days max. As you can see, this ability to have charge-backs against you could last for as long as 6 months!!
[url]http://www.ftc.gov/bcp/conline/pubs/credit/fcb.htm[/url]

3) It is clear that you have withdrawn the funds from your account without providing any 'dispute' buffer to allow for at least SOME provided disputes. That was simply a mistake on your part.

Finally, I do have to ask.... what type of product or service were you SUPPOSED to be providing that has incurred such a massive amount of disgruntled 'customers'???

Thanks for your response

The business was a wholesale product based business. All orders for product were filled and all were shipped.
I charged a small membershipship fee and also a fee for site development and hosting..
Unfortunatly it got to the point where it was costing much more than I could generate in income.
I tried to be as honest as possible and I agree that I made some bad decisions and mistakes, and I feel very bad that this has happened. I would refund everyone if I could but I cannot at this time. This all started from being unemployed in the first place as I had a 25.00 per hour Job until the Attack on N.Y.
This ended my position with a prominent internet company and put me on unemployment insurance.
I have gotten myself into a nice little mess to say the least but it was not intentional by any means.