Online Gambling Debt . . .

[fortune1265]

What is the name of your state? Oklahoma

I am about $30,000 in debt due to online gambling. I played Golden Casino and was allowed to use my credit cards 90% of the time because they disguise the transaction codes. I basically have two questions. Can my credit card companies recover some of my money if I let them know it was for illegal transactions? Will I be arrested once I spill the beans? Most of the transactions were authorized through Chase.

[racer72]

Can my credit card companies recover some of my money if I let them know it was for illegal transactions?

Yes they can, from you. In fact, they will want you to cover the whole amount. Part of a new federal law that outlawed online gambling also allows credit card companies to hold the users fully liable for the charges.

Will I be arrested once I spill the beans?

No.

[Some Random Guy]

Racer,

I was wondering if the law was made retroactive in the sense that debts incurred for gambling before the latest law are still collectible.

Just curious.

[racer72]

Racer,

I was wondering if the law was made retroactive in the sense that debts incurred for gambling before the latest law are still collectible.

Just curious.

In the OP's case, it won't really matter, he was going to admit the debt is from online gambling. Those that were abusing the system in the past were claiming their credit card was stolen and was used illegally. Then they would file for a chargeback. Because the debt was generated outside the US, the credit card companies were eating the loss. With the loophole now closed, credit card companies can now hold their customers liable for these so called "unauthorized charges".

[footdr]

I was reading through these threads for answers to my problem and noticed this one.

If it is illegal for merchants to bill for or accept payment for gambling transactions then it would seem the cardholder could dispute the charge and unless the merchant that submitted the transaction wants to provide the information for the true nature of the transaction, they will probably not respond to the inquiry and the chargeback will become permanent. Thereby releasing cardholder of payment liability. I AM I off base?

Also, if the transactions are chargedback to merchant for concealing the true nature of the transactions in order to gain approval of charges, why would bank come after cardholder, they may cancel card, but no need to collect funds. Right?

Similiar situation as the question I posted except my disputed transactions were not gambling related and were unauthorized by me and the merchant failed to provide required/requested information and chargeback became permanent after over 60 days of no reply.

Now the (the merchant) are threatening to send me to collection. But bank says send collection co. copy of letter they sent stating chargeback final(something to that effect)

[Chien]

To Some Random Guy – The Internet Prohibition Gambling Act wasn’t retroactive, but it was theoretically based on the existing Wire Act and at least the Justice Dept. had long used that to say that any form of online gambling was illegal. After the Haines case in 1998, most major issuers tried to post warnings to cardholders, but that didn’t prove effective and the situation remained in flux, with some states extending recovery rights to creditors, some not and some opting for a middle ground (LA had said only sports betting was illegal under the Wire Act). The new Act was an effort to clarify it all.
The practical reason why there were not more suits earlier is that it’s a multi-billion dollar international industry, and no one wanted to rock the boat with judgments in comparatively small cases that might hurt it faster. That will now change.

[gynadia]

Yes they can, from you. In fact, they will want you to cover the whole amount. Part of a new federal law that outlawed online gambling also allows credit card companies to hold the users fully liable for the charges.

SECURITY AND ACCOUNTABILITY FOR EVERY PORT ACT OF 2006

[[Page 120 STAT. 1884]]

Public Law 109-347
109th Congress

``(A) Credit; creditor; credit card; and card
issuer.--The terms `credit', `creditor', `credit card',
and `card issuer' have the meanings given the terms in
section 103 of the Truth in Lending Act (15 U.S.C.
1602).

``(a) Regulations requiring each designated payment system, and all participants therein, to identify and block or otherwise prevent or prohibit restricted
transactions through the establishment of policies and procedures
reasonably designed to identify and block or otherwise prevent or
prohibit the acceptance of restricted transactions in any of the
following ways:

``(b) Proceedings.--
``(1) Institution by federal government.--
``(A) In general.--The United States, acting through
the Attorney General, may institute proceedings under
this section to prevent or restrain a restricted
transaction.
``(B) Relief.--Upon application of the United States
under this paragraph, the district court may enter a
temporary restraining order, a preliminary injunction,
or an injunction against any person to prevent or
restrain a restricted transaction, in accordance with
rule 65 of the Federal Rules of Civil Procedure.
``(2) Institution by state attorney general.--
``(A) In general.--The attorney general (or other
appropriate State official) of a State in which a
restricted transaction allegedly has been or will be
initiated, received, or otherwise made may institute
proceedings under this

[[Page 120 STAT. 1960]]

section to prevent or restrain the violation or
threatened violation.
``(B) Relief.--Upon application of the attorney
general (or other appropriate State official) of an
affected State under this paragraph, the district court
may enter a temporary restraining order, a preliminary
injunction, or an injunction against any person to
prevent or restrain a restricted transaction, in
accordance with rule 65 of the Federal Rules of Civil
Procedure.


This has been a fascinating year of events in regards to the above referenced Safe Port Act; new developments are right around the corner. I wish you the best.