Credit Card Fraud and Automatic Billing?

[ultrarunner]

In the scheme of things this is very minor, but annoying.

Open my February Costco Credit Card Statement and notice a charge for $29.95 for one of the Medical Alert Companies.

I question the charge and ask for the account to be closed... the charge was under Mom's name... Mom has not had a charge in about 2 years... but we kept her card because it is also the Costco Picture ID and her neighbor would take her once a month to Costco and the neighbor does not have a membership.

Credit card company confirms card canceled and 3 days later I have a new card... I think all is good?

March Statement again shows the same charge and I officially dispute it... Credit Card Company says they "Only" issued me a new card... left Mom's untouched... so cancel again and two new cards arrive... I think all is good?

April Statement arrives and new charge again... how can this be.

Credit Card Company says auto bill vendors just move the charges to the new account number when the old once is cancel... Incredible!

Just open May Statement and all the back charges are on the account again... tell Costco after 35 years I don't want their card and I am done... Costco apologizes and issues credit... says accounts must blocked in addition to closed???

So now I get 43 pages from Vendor alleging fraud on my part... and threats of collection.

Is it "Possible" Mom with Alzheimer gave out the card number... sure it is way back in February... I have had the card locked up since.

I ask for proof of delivery and company furnishes Fedex "Left near Mailbox???

For all I know it never arrived... this is East Oakland California after all.

Lesson learned... even cancelling credit cards will not prevent reoccurring charges.

Oh... as for the Medical Guardian Alert... calling anytime of the day is met with message stating due to the high volume of calls please leave a message...

Just venting here.

This is a company that advertises relentlessly on daytime TV saying the Senior Benefit is FREE and act now.

What they do not say is FREE comes with a two year Monitoring Agreement...

Is it my fault for keeping Mom on my account... sure.

But, paying for something not received is outright criminal.

To be continued.

 

[George2615]

Can't reply about the recurring charge but let me tell you that once you turn 65 it gets worse. All of these Med Alert, hearing aid, walk in bathtub, chair lift, and every other company that markets devices to the elderly starts calling and sending mail to try and sell you their products. So glad I have caller ID and I don't answer any calls from numbers I don't know or have programmed.

 

[ultrarunner]

Mom is old school... if the phone rings it is her duty to answer it... no exception... same with someone at the door... it could be someone in needing help.

They are relentless in their tactics and if I happen to be around and take the call they hang up.

Some are outright fraud saying he was calling on behalf of Medicare to verify information... asked for name, maiden name, date of birth, place of birth and social security number... I heard it all on the extension... to Mom's credit she said she was handing the phone to me and when I said hello... the caller hung up.

 

[hawkeye08]

Sorry to hear that. I know it is a pain once these companies get ahold of someone.

 

[wagne223]

Was the Medic Alert through Costco?

I ask because when a person cancels a credit card and is issued a new one, the bank does not contact vendors and give them the new card info. That is not legal. You have to contact the vendor and update the card. Of course the vendor will try to contact you also.

Now if it is a Costco plan, they could just move the charge to the new account.
Although I still think someone had to authorize that.

 

[Jstpssng]

This is one reason why I don't allow autopayments; if the service needs to have it, I will go without. One of the few times that I did; they took >$1700, which took me 4years and a lawsuit to get back. Another time- on my debit card, like a dumbA- I had to close the account, throw out all of my checks, and start over.

 

[MossRoad]

In the scheme of things this is very minor, but annoying.

Open my February Costco Credit Card Statement and notice a charge for $29.95 for one of the Medical Alert Companies.

I question the charge and ask for the account to be closed... the charge was under Mom's name... Mom has not had a charge in about 2 years... but we kept her card because it is also the Costco Picture ID and her neighbor would take her once a month to Costco and the neighbor does not have a membership.

Credit card company confirms card canceled and 3 days later I have a new card... I think all is good?

March Statement again shows the same charge and I officially dispute it... Credit Card Company says they "Only" issued me a new card... left Mom's untouched... so cancel again and two new cards arrive... I think all is good?

April Statement arrives and new charge again... how can this be.

Credit Card Company says auto bill vendors just move the charges to the new account number when the old once is cancel... Incredible!

Just open May Statement and all the back charges are on the account again... tell Costco after 35 years I don't want their card and I am done... Costco apologizes and issues credit... says accounts must blocked in addition to closed???

So now I get 43 pages from Vendor alleging fraud on my part... and threats of collection.

Is it "Possible" Mom with Alzheimer gave out the card number... sure it is way back in February... I have had the card locked up since.

I ask for proof of delivery and company furnishes Fedex "Left near Mailbox???

For all I know it never arrived... this is East Oakland California after all.

Lesson learned... even cancelling credit cards will not prevent reoccurring charges.

Oh... as for the Medical Guardian Alert... calling anytime of the day is met with message stating due to the high volume of calls please leave a message...

Just venting here.

This is a company that advertises relentlessly on daytime TV saying the Senior Benefit is FREE and act now.

What they do not say is FREE comes with a two year Monitoring Agreement...

Is it my fault for keeping Mom on my account... sure.

But, paying for something not received is outright criminal.

To be continued.

Let's say you set up auto payment on a credit card for the medical alert. Things go well for a long time.

Then that same credit card gets compromised for some reason (skimmed, stolen, lost, etc...) and you notice fraudulent payments on your bill, or, like my credit card company, they notice 3-4 payments in 3-4 different on-line accounts and notify you and you cancel the card.

So the card is cancelled.

Then the auto-payment on the medic alert comes due, and they can't get their payment because you cancelled the card. That's your fault. Not theirs. You cancelled the account. They didn't. All they know is you have an agreement letting them auto-bill you and you cancelled the payment device.

This type of thing happens very often to many people. The people complain to their credit card company over and over because the people think it's a hassle to have to update all of their auto-payment info on all of the accounts they set up on that now cancelled credit card.

So the credit card companies (bank, issuing agent, whoever owns the card) put language in their agreements that if you cancel the card and get a new one reissued, they will automatically continue auto-paying anyone that had an auto-pay set up on your old card number with the new card number.

So, most likely, your credit card company is lying to you. The vendors can't just move your auto-payment to a new credit card number without your approval. The credit card company allows it, because that's in the agreement you signed with them. It's a convenience for the customer (you) because if you cancel a card number that you agreed to pay someone with, and they can no longer collect that payment, your credit score is in danger, as well as being taken to collections, etc...

You need to contact the credit card company and ask them to not allow auto-pay vendors follow your account. There's a flag in there that they can flip to stop that function.

You also need to contact the vendor that you're auto-paying and switch it to direct billing, or pay off the contract in full and cancel it. Then cancel the entire credit card, not just get a different number on the same account.

Now, that's just what I "think" is happening to you, it may not be the actual case. It's just the way it was explained to me by someone that has been in this business for 4+ decades.

 

[Tractor Seabee]

The worst offenders are those shysters that buy defaulted accounts or contracts. They can be relentless going after pretty small amounts due to all the interest and late fees they attach. MIL passed away. 3 months later here comes a credit collector demanding payment of an alledged contract she signed. There was no records in her stuff indicating such a contract or any previous payments on the alledged account. They were adamant that she had made the sccount but never made a payment hence the bought the delinquent account. After several letters and phone calls wife (she was her mothers trustee) turned it over to me. I wrote a letter and told them we were closing out the estate and would pay the amount if they would provide a copy of the contract she had alledged to have made. Never heard another word from them. These scams are rampant as gulible people roll over and takeinhe shorts rather than fight.

Ron

 

[ultrarunner]

Not a product from or offered through Costco.

Credit Card company said it is common for auto pay to subscribe to a service through credit reports that links old and new accounts... there is an extra step needed to block... I thought this is what would happen but it took the third attempt.

Medical Alert says it was sold over the phone... thing is I have not seen it and when asked... the Medic Alert said it was left without signature near mail box???

That is an invitation to theft in this city.

Asked if it had been set up and tested... no response forth coming.

I have called the number many times... always on hold... my entire 30 minute lunch on hold... after work 40 minutes on hold...

After posting... I went to the BBB website... 62 complaints... most were on being on hold and never getting a live person... go figure.

So I did file a formal complaint with the BBB... since the company is established.

I imagine they could reshipped and I would walk it to the Post Office and send it back... the BBB said it is important to insure item and get signature confirmation when returning as opposed to refusing.

I've been with Costco Credit Card since 1982... have no compunction about permanently closing the account if the third time doesn't work... I like Discover and American Express much better than Citi... American Express had no pre-set limit... Citi does.

Mom has great credit... I guess they could try and garnish her Social Security Check???

I've seen their add and very misleading to say the least... it is on daytime TV... says it is Free... of course the equipment is FREE with 2 year contract in the fine print... also the FREE equipment comes with a restocking fee after 10 days...

Dad is rolling over in his grave... he was meticulous on these things... sharp as could be until he passed.