Charge back and section 75 in event of fraud

tpcintra

Hello everyone.
The situation is following. I have invested money to trade on the stock market through few companies. The broker introduced me to their platforms and I was profitable trading for over 2 months. Upon trying to withdraw my gains I am faced with a problem. The companies are not honoring the withdrawal requests thou all the conditions for them were met. I am under the assumption that I was a victim of a scam. My question would be if there is a recourse at least to get the initial investment back through the credit card providers or section 75 claim. My assumption is that the trades were never actually posted on the real market, the companies are hoping that the trader will lose money and will not cause any fuss for them, in that event they will just pocket the deposited amounts. As mentioned in my event I was profitable. So it would be clear that the service I paid for was not as described and/or not provided at all. Any advise would be appreciated.

Linton

Please can you provide more information - it will help us understand what has happened and whether you have actually been the victim of a scam and what options you have.
- what was the name of the broker and the platforms?
- How did you hear about the broker - did you contact them or did they contact you?

I dont know about whether section 75 would apply. Googling does tell me that it only applies if you paid the supplier directly rather than through an agent.

tpcintra

I can not disclose the platforms or broker details at the moment as this is against their terms and conditions, as this is still ongoing it would provide them with a leverage not to pay out anything.
I have responded to a Facebook add and then the broker contacted me via phone.

All the payments were made through the platforms websites, so the assumption is that the direct link is there.

tpcintra

The quick story would be this:
I have invested through their platform money using my credit cards.
I have opened trades and traded on their platform throughout a period of few months.
The trades were profitable. All the conditions for withdrawals were met.
Withdrawal requests submitted, no payments made into my bank/credit card account.

How I think they are operating:
Once the money is placed into their platforms no real trades are opened on the stock market thou trades were placed on their platforms. They just take that money and leave you to play with their virtual money on their platforms that shadow the real market prices without intention to pay anything out. Or it might be run as a ponzi scheme. I am quite certain that the trades were never placed on the real stock market.

So the question would be what recourse one has?

Vortigern

I don't believe any legitimate broker would accept payment by credit card.

I doubt you'll recover your money. Your only recourse could be to name and shame the company concerned - to stop others falling into the same trap.

Linton

Is this relevent? The story sounds very similar. If it is relevent you may wish to contact other victims by the site's "private message" facility.

https://forums.moneysavingexpert.com/discussion/5499113

tpcintra

Question is what recourse one has under chargeback or section 75 as this is a fraud.

Keep_pedalling

tpcintra wrote: »

Question is what recourse one has under chargeback or section 75 as this is a fraud.

It’s not as simple as that, who took the payment, the broker or the “investment” platform, and how much are we talking abou5 here?

Glen_Clark

Recently shown on a BBC watchdog programme. Customer bought goods online using credit card. Goods never arrived. Customer had no legal claim on Credit Card Company because they paid a payment processor, so the Credit Card Company had fulfilled their part of the contract.
Not many people knew that.
There are calls to change the law because of it.

Glen_Clark

tpcintra wrote: »

I can not disclose the platforms or broker details at the moment as this is against their terms and conditions, as this is still ongoing it would provide them with a leverage not to pay out anything.

If they haven't paid you they have not fulfilled their part of the contract.
Keeping quiet makes it easier for them to get away with it.
Wheras naming them gives them an incentive to pay up - especially if they are still in business.

jimjames

tpcintra wrote: »

I can not disclose the platforms or broker details at the moment as this is against their terms and conditions, as this is still ongoing it would provide them with a leverage not to pay out anything.

That certainly smacks of a scam, I can't imagine any legitimate company would prevent you naming them