Qchex hit by FTC
p2pnet.net News:- Online payment processor Qchex has been ordered by a US federal judge to stop its current method of online payment processing because, say regulators, it facilitates fraud.
The company lets people create and send checks drawn on any bank account without verifying their authority to do so, according to the FTC (Federal Trade Commission), says CNET News, going on:
“The San Diego-based company’s business focused on generating electronic checks online that could be e-mailed and then printed out by the recipient”.
As a result, “con artists have used the Qchex service to draw checks on bank accounts that belong to others,” the FTC said, adding that it has received hundreds of consumer complaints about the company.
The FTC will seek a permanent halt to the business practices, “and an order requiring that the defendants give up their ill-gotten gains,” adds the story,
Also See:
CNET News – Court puts stop on online check firm , October 2, 2006
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