Alright, here goes nothing.
Some time in the beginning of this past May my debit card number was stolen. I’ve been unable to successfully find the business or person that stole my information and debit card number, but I suspect that it was a website that I ordered from back in April. I filed a claim with Wachovia and had my card canceled on 5/23/09. I returned the affidavit they sent me a few days later, after I had gotten my replacement card. Everything seemed to be okay, but I placed a fraud alert on my credit file just to make sure that it was only my debit card that was stolen and not something more serious, like my identity. Luckily though, my identity was not stolen. Phew.
Fast forward last week. I recieved a bill in the mail from a company called “Preferred Platinum Plus” for the amount of $156.02. I was obviously a little freaked, seeing as how they had my name and address. However, having no intention of just paying the thing out of fear, I decided to do a little sniffing around to see what was up. I found out a few things, namely:
- the card used was my old, canceled card
- the charges were made on 6/4, exactly 12 days after canceling my old card
- the name and address of the guy who made the call and racked up the charges
- the company in question is notorious for questionable business practices
Well isn’t all of that interesting? One of the most interesting things, however, is the way in which the company, Preferred Platinum Plan, runs their billing system. Essentially, what they do is this: The caller dials the number and gives a name, address, and credit card number, then creates a PIN. Immediately thereafter, without verifying the card in any way, the call is started and the billing begins.
Now, let’s take a second so I can clarify how electronic credit and debit transactions are SUPPOSED to work for those who don’t know. Essentially, when you take out your card to pay for something, the following happens:
1) You slide your card.
2) The computer system reads the magnetic stripe on the back of your card to get information such as name, account number, routing number, etcetera.
3) The computer takes said information and sends it to the bank via a high-speed data connection, similar to an internet connection.
4) The bank receives the information and checks to see if you either have enough room on your credit limit (if using credit), or enough funds in your checking account (if using debit). If your credit limit is good, or you have enough funds in your account, you’re good to go and the transaction is completed.
5) If, however, you don’t have sufficient funds or credit, the bank rejects the transaction, returning a “declined” message.
Note: In some cases, the bank lets you overdraft if using debit. However, there is a limit to the number of overdrafts. Situations may vary.
Now that we know how a normal, reasonable transaction is supposed to occur, we can see just how absurd the billing method of PPP is. Can you say questionable business practices?
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I’m slowly taking care of this, so it’s not the end of the world… just frustrating. Either tomorrow or Thursday I have to go to the police station and file a police report to mail back with an affidavit from PPP.
In case you didn’t catch it, I also have the name, phone number, and address of the guy who placed the call. I’m not sure what I’m going to do with this information yet, but I have a few ideas. Updated to follow.