In stark contrast, the defendants’ formal response, filed on June 17, 2024, denies all allegations. Chargebacks911 acknowledges providing chargeback prevention services but emphasizes its operations are strictly legal, standard within the industry, and void of any fraudulent intent. They argue that any associations or services rendered to other companies mentioned in the complaint, represent standard commercial interactions consistent with legitimate business practices. Moreover, the defendants categorically deny manipulating merchant accounts or chargeback data to conceal consumer disputes.
However, this is not Cardone’s or Chargebacks911’s first encounter with regulatory scrutiny. Earlier in April 2023, the Federal Trade Commission (FTC) and the Florida Attorney General brought action against Chargebacks911, Gary Cardone, and Monica Eaton, alleging they engaged in unfair business practices. The federal complaint accused the company of submitting misleading documentation to dispute consumer chargebacks, ignoring red flags, and artificially lowering merchant chargeback rates through microtransactions.
