Chargeback company scam
Intense activity of dubious organizations providing services in the online trading industry creates fertile ground for demand for services to return funds from unreliable brokers.
This is done by specialized law firms.
Unfortunately, up to 95% of these organizations are also engaged in deceiving traders.
Let’s find out how this happens and why it is extremely difficult to recover funds from fraudulent brokers using the MPS guarantees.
What is a chargeback and what do legal entities do?
Chardgeback is a guarantee from Visa and MasterCard to return money to the payer if the product or service is not of the required quality, or if the buyer does not receive what was promised by the seller.
If this appeal is considered in his favor, the amount paid will be compensated in full.
In the case of dubious brokers, the situation is not so clear and there are several reasons for this:
In the user agreements of unreliable organizations, the terms of cooperation are spelled out in such a way that if a client’s account is blocked without reason, the truth remains on the company’s side.
That is, by their relatively illegal actions, brokers do not violate regulations and legal norms.
The trader transfers money to the account and receives company-guaranteed access to the trading platform, so services are provided in full.
Next, the client allegedly violates the terms of the agreement, which leads to blocking.
It is from this angle that representatives of the Ministry of Railways will consider the user’s request. To initiate payment cancellation, the applicant must prove the fact of payment through a bank account statement.
Most dubious brokers provide clients with either details of private third parties that have no official relationship with the company, or process transactions via blockchain, making it simply impossible to determine the final recipient.
In order for the application to be considered, the bank statement must clearly indicate the transfer of funds to the intermediary company, which is quite rare.
Initiating the chargeback procedure is possible if the account was topped up using Visa and MasterCard cards.
When depositing funds via EPS or bank transfer, it will be almost impossible to achieve a refund.
To cancel the payment and return the investment, the user will need to collect a small package of documents:
- Certified copy of civil passport.
- The broker's user agreement, in which the points violated by the company should be highlighted.
- Application requesting cancellation of payment, drawn up in English.
- Bank account statement to confirm the transaction.
These documents are sent by registered mail to the head office of the bank that issued the card and are subsequently submitted for review to the Ministry of Railways.
The period for studying a user's request by authorized specialists is limited to 60 calendar days.
Everything seems quite simple, but bank employees often refuse to accept documents, thereby violating their own regulations.
Credit institutions are obliged to accept absolutely any client request for consideration.
What do specialized law firms do?
To obtain a refund from a broker, it is recommended to contact competent lawyers who provide services without prepayment.
An experienced specialist will do all the work “turnkey” - draw up documents, work with the broker and regulators, and also get the application reviewed by representatives of the Ministry of Railways.
Unfortunately, finding such a lawyer is extremely difficult. Almost all chargeback companies providing services to CIS citizens operate according to the following scheme:
Upon signing the contract, the user makes an advance payment necessary for drawing up documents and payment for translation.
The amount varies from 10,000 to 30,000 RUR and depends on the level of the lost deposit. There are no guarantees of success in the contract.
The terms of the document only guarantee that lawyers will complete the work of drafting and sending documents. After receiving the advance payment, the specialists create the appearance of work and after 2-3 months notify the client that they have received a refusal from the Ministry of Railways. In this case, the advance payment is not refundable.
It is noteworthy that this scheme fully complies with current legal standards.
Therefore, the user’s attempt to defend his interests in court will only lead to further material expenses. To avoid becoming a victim of such criminals, you should cooperate with lawyers who do not require advance payment for their services. Well, immediately open accounts only with proven brokers - http://time-forex.com/vsebrokery/proverennye-brokery