Telemarketing fraud, elderly neighbour and bank

[Rainier]

What is the name of your state?What is the name of your state? Washington State

I'm writing on behalf of a neighbor 79 years of age and who as been had by a telemarketing company.

This past week, Esther received notice from Key Bank informing her that her checking account was now overdrawn etc. etc. etc.

Knowing she'd not exceeded her balance, Esther paid the bank a visit - it would appear that approximately 15 electronic transaction had occured on her account between 8 and 18 March (approx.).

Three names appear - Consumer Grants, Universal Benefits and CAS Professionals.

One claimed 8 checks, over 4 seperate days - all for the same amounts.

Until we get an actual statement out of Key Bank, I can only estimate the total unauthorized transactions to be in excess of $4,100.00.

Immediately I found out about this, I called the local Sheriff's Office.

The Deputy immediately told us that the bank had failed to give Esther the appropriate fraud reports per check involved and without them we're unable to file a report with the Sheriff. Given that Esther felt that she was going to be held responsible for this fraudulent activity, she closed her checking account - purely because she felt it was the only way to stop monies from continuing to be withdrawn - sadly it was too late. And from what I can see - the bank were more than happy to just let her walk away - they were off the hook!

Consumer Grants USA, was sued in November 2004 by Florida Attorney General, Charlie Crist. http://www.consumeraffairs.com/news04/grant_scam_fl.html and if you do a search on them - you'll see that just about half the States in the Country have done the same!

The exact same thing mentioned in that article happened to Esther. She was telephoned. On both occasions, the callers identified themselves as being from Key Bank. According to Esther, they already had her banking information - they were merely calling to let her know of her good fortune and to verify the banking information they had was current. One person told her that she was entitled to a grant of $5,000 etc. etc., the other told her that she was being rewarded as a long time customer of Key Bank etc. etc. etc. At no time did she give her permission for these monies to be taken from her account.

Another thing that does concern me is that I found out today that this isn't the first time this has happened to Esther. On two previous occasions, small amounts were removed from her account and although Key Bank was informed, they merely closed one account and opened another. Esther was held accountable for the monies!!! I find it unconcionable that given her history and age - the bank didn't attempt to work with her to prevent history repeating itself.

Sorry - I'm rambling but I'm frustrated and pretty PO'd at what this lovely lady has been put through this past couple of days.

OK - bottom line - can I get this lady her money back. Right now she doesn't have a cent to buy groceries with. AND - can you do anything to stop these people preying on anyone else in our State?

Thank you.

 

[Debt Guy]

She should immediately inform the bank that she did not authorize those transactions. The bank can charge them back to the originating bank.

She should make a phone call and ask to speak to the bank's Security Officer or Internal Audit Manager -- either can get her to the right place. Make notes of the conversations, names, dates, etc.

She should demand that the transactions be charged back immediately.

She should ask for the forms that are required to dispute the transactions.

She should ask for the forms that are required to file a police report.

She should write a letter to the Security Officer and Internal Audit Manager advising them that she did not approve the transactions. Do this right away and follow up later with the forms provided by the bank.

Tell her to stay off the damn phone and just don't talk to telemarketers at all.

 

[Rainier]

Debt Guy,

Thank you - I've now got somewhere to start.

I have been onto the Bank this morning. They are maintaining that Esther told them that she did give authoritization to the "Company" to deduct an amount from her account. Esther maintains that she didn't, both to me and the police.

Either way - she patently never gave permission for all of this but I guess we've got an uphill battle now.

Thank you again.

 

[Rainier]

Just an update.

I spent 2 hours on the phone with Key Bank this morning. I would seem that this telemarketing fraud has been going on for a year!

I find it unconcionable that - and Key Bank told me this - it is illegal for a bank to contact a customer when they see suspicious activity happening. Apparently, the bank can be sued by these companies.

What's wrong with that picture?????

 

[Veronica1228]

Just an update.

I spent 2 hours on the phone with Key Bank this morning. I would seem that this telemarketing fraud has been going on for a year!

I find it unconcionable that - and Key Bank told me this - it is illegal for a bank to contact a customer when they see suspicious activity happening. Apparently, the bank can be sued by these companies.

What's wrong with that picture?????

Excuse my language, but that is total crap!!! Ask Key Bank to site the Regulation to which they are referring. I have never heard of such a law, and while it's possible it is state and not fed, it makes no sense to me from a consumer or a banking standpoint.

If banks allow fraudulent activity to occur, then they are held liable. This is why the existence of such a law would be ludicrous.

 

[Rainier]

Just a quick update.

We got the fraud reports from the bank today so can now file a police report.

The sad thing is that we were unable to prevent Esther's Social Security check going into the account and as the fraudulent direct withdrawals took her way beyond that sum, the bank can't pay her the SS.

Maybe 60 to 90 days we were told. This isn't right at all.

...c.

 

[Veronica1228]

Just wondering if you have also had a chance to follow the rest of Debt Guy's advice such as filling out affidavits etc. The bank should be working to get this money back. Some of it should be retrievable depending on when the debits occurred. Make sure they are on it and following Reg E.

Your neighbor needs her funds back. I'm glad she has a friend like you.

 

[Ladynred]

You should also get right on the phone to your State Attorney General's office. This is the kind of thing that is right up their alley !! File a Complaint !

 

[Rainier]

You should also get right on the phone to your State Attorney General's office. This is the kind of thing that is right up their alley !! File a Complaint !

I did this last week - also wrote to the Governor but I've heard diddly squat from either office.

The situation with Key Bank (as I now understand it) is that this is the third that Esther has fallen foul of Telemarketing Fraud. Twice in November of 2004 and once in March.

On all three occasions, the accounts were closed. And on the third occasion, Key Bank told Esther that she really ought to consider using another bank (wonder why????).

Anyway - The Manager assures me that the two previous frauds were settled and that funds were recovered. However, I now know that no fraud reports were issued, neither was Esther told that she needed to file a report with the Sheriff.

On the third occasion, it was me who asked for the fraud reports - no information about the process was volunteered.

Either way - I'll have to keep abreast of the matter to make sure that she gets refunded all monies owed to her. STILL - and we're well over a week after the event, I'm still waiting for a copy of a bank statement.

I'm disappearing up my own derriere right now - seems the situation with Esther was worse than I could imagine.

Right now, the pressing matter is a Subaru dealership persuading her to finance a brand new 2005 Legacy! at the ripe old age of 79! https://forum.freeadvice.com/showthread.php?p=923796#post923796

Happy reading......

Corrine

 

[Veronica1228]

Thanks for the update. It sounds to me like the bank might not be complying with Reg E. Use this fact to try a light a fire under them if it will help.

Once again, good luck to you both. I have my fingers crossed for you.

 

[BleedingHeart]

What is wrong with people!!! I am disgusted with the whole legal
system. The "nice" crooks have way too much power to be able
to get away with tapping accounts like this, the banking system
should be put to shame and the car dealership, well that's a whole
nother story!!
So..This is what I have to look forward to huh? So money isn't safe anywhere!! No wonder the old school use to bury it in their backyards
& hide it in places like easter eggs!!
I admire you Corrine for your compassion for this elderly neighbor of
yours, Be careful though. Iaal & Veronica have been very helpful.
Their advice is near flawless. It is a Good idea to fill out the necessary
complaint forms for the State Attorney General's office. It may help
later to have that paper trail. I hope you make copies of every letter
& form you fill out. I spose you already have "Ester" files to keep all
of it organized.
I was reading about millions of bank accounts that have been used
to commit fraud & identity theft. I live in a supposedly good
neighborhood & some people were just arrested for stealing mail out
of mailboxes in about 6 cities in a 40 sq. mile area to set up accounts,
make withdrawls, open credit cards & take out loans with the info.
I'm 20 miles outside of Minneapolis, MN. & My city of 25 thousand was
one of them!! It's happenning everywhere!
It is so easy to fall into the crooked scene. Being honest does pay,
unless you fall victim to them. (You retain your dignity.) Priceless.
May many Blessings come your way......Mary

 

[Rainier]

And bless you too Mary.

I have taken in IAAL and Veronica's (and others) advice - printed it out and will be taking it to the attorney with us in a couple of days - just so that I haven't missed anything.

I've got files for everything - Telemarketing fraud, the bank, the car dealership (I'm just praying I won't unearth anything else).

Corrrine