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Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 33424
Experience:  Began practicing law in 1992
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My company fell for a scam where the customer pretended to

Customer Question

My company fell for a scam where the customer pretended to be a real person from a real company and used that information to order supplies from my company and have shipped to another site with stolen credit cards.
Now I know this has all the signs of fraud now that I have had time to research, but I thought it was legitamate at the time.
approximately a month later the charge backs started rolling in. I use Intuit payment solutions to process credit card transactions.
So far I have sent in 5 separate charge back dispute letters all of which have been sent back as no recourse action.
All together the charge backs will total $80,000+, which Intuit states I'm responsible for.
Problem is I'm a one person company with additional help every now and then. My business basically pays for my bills and enough left over to keep me in business. I thought I hit the big time with these orders coming in once a week. To good to be true.
Anyway, there is no way I can pay this money back to intutit unless they want to set me up on a 30/40 year payback plan.
Also I do not feel I should be held solely responsible for the fraudulent transactions. The company name they gave me to use did not match the company name on the credit cards. I now know that not all CC companies use name as a checkpoint, but that is there fault if they choose not to as a means to protect themselves. It seems the merchant has no rights at all. Also I supposedly had a $40,000. transaction monthly limit that they allowed me to go over with out questioning or contacting me at all.
As you can probably tell I would have trouble coming up with the funds to pay for a lawyer. But would like to fight this if anyone thinks I have a chance of winning.
Also I do not know what to do from here. Do I contact Intuit and let them know I cannot pay. I'm sure they are going to try and talk me into a payment plan and try and get my financial information. And do I continue to send in disputes for the other charge backs knowing they are going to comeback as no recourse action. Or do I just sit and wait for them to sue me? And what can they sue me for? I have no substantial assets. Will I lose my business?
I have filed police reports for my city and all the cities that I shipped to. I have also filed complaints with IC3 and FTC websites. I have not heard anything back from anyone in approx 2 weeks, Even finding a lawyer to sit and talk to is becoming hopeless.
I could go on, but will stop here. I can provide additional information if needed.
Thanks in advance for your time in this matter.
Any help or suggestions would be greatly appreciated.
Submitted: 11 months ago.
Category: Legal
Expert:  Dwayne B. replied 11 months ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to helping you today.

I read your facts, is there a specific question with which I could assist?

Customer: replied 11 months ago.
What would you suggest I do next?
Expert:  Dwayne B. replied 11 months ago.

It sounds like you may be in line for a bankruptcy. The suggestion I'd make is to find a local bankruptcy attorney and visit with them about your options. If it is a corporation then declaring bankruptcy will allow you to pay off the amounts you owe or else not pay them and declare an insolvency. Either way it allows you to continue operating your business but gives you time to get everything together.

Customer: replied 11 months ago.
Do you think Intuit can be held liable as well? Why would name verification not be a top priority? Why is this not a mandatory check for all processing company's? atleast when its over a certain amount it should be check. I think it would cut back on a huge amount of fraud.
Expert:  Dwayne B. replied 11 months ago.

It's possible, but I haven't seen their internal documents and their procedures and so I can't say for sure.