I recently received a complaint from a consumer about the Fraud Center. He told me that he had a problem with a company he was dealing with not performing as promised, so he reported it to PayPal and it reversed the charge. In response, the company reported him to the Fraud Center, which as promised, essentially blacklisted him.
The Fraud Center’s website states: Make Sure You Get Paid. When you add a record to the Fraud Center Network database, the system will send an email out to the persons email address in the record. The person can then visit the Fraud Center Network website to learn how dispute or remove themselves from the system. In 99% of all cases, people who have received notice has worked with the provider and the Fraud Center Network staff to resolve the issues.
According to the person who contacted me, the only way to work things out and resolve the dispute it to pay. Fraud Alert will not remove the entry unless directed to do so by the person who filed it. The information is also available to subscribes to the Fraud Alert, regardless of its accuracy. To me, this looks a lot like a credit-reporting agency, and it should be subject to the Fair Credit Reporting Act. There also seems to be real privacy problems. According to the person who contacted me, his private information has been made public on this website, with little concern for security.
I must note that I have not been able to verify anything I have been told, beyond reviewing the Fraud Center website. I tried to register for the company’s services but do not qualify. If others know more about this, please add a comment.