5 ms·

I've heard a lot about privacy.com for this kind of thing lately (seems similar to bank of america's "shopsafe" feature?), and I have a question: even if your c

by tribby 7y ago

I've heard a lot about privacy.com for this kind of thing lately (seems similar to bank of america's "shopsafe" feature?), and I have a question: even if your card fails to process, if you've entered a contract to a pay a subscription fee to a service provider, are you not legally bound to pay up? not that most services would bother trying to collect, instead opting to shutter your account -- but, in theory, is the legal liability still there?

mfkp 7y ago
Sure, and some companies could send you to collections or something similar, but not many would over a $10/month subscription.
- londons_explore 7y ago
  More and more have realised that a $10/month subscription is actually the perfect thing to send to collections. They sell it off to a collections company, often for $50 or more. That company adds fees, interest, and charges to the bill ($50 for each letter, etc), and finally takes you to court when the amount owed gets to $3000 or so. The court can't chuck out those extra charges, since they can be seen as a legitimate consequential expense.
  - homero 7y ago
    I throw in a fake name and address
    - the_seraphim 7y ago
      well see now thats mail fraud
    - londons_explore 7y ago
      Thats the high risk strategy... After sending 50 letters and court summonses to your fake address, they finally get a court to order your ISP to give the real details, and suddenly you have a $10k claim with the added charge of fraud...
  - windexh8er 7y ago
    Except a $10/month Netflix subscription is not a lease, it's a prepaid service. They all state very clearly that if, and when, someone doesn't pay those services are no longer rendered. The gym memberships could be different if the contract is setup to give you your first month free when you sign up for six. But even then most give you some guarantee such as "if you're not satisfied". I think your point is that this type of service creates a cat and mouse game with which there is only a temporary winner. What I do like about this new "trend" is the abstraction of the end user. Netflix doesn't need to know who I am. If I pay I should be able to consume service. I realize this opens the door to more potential fraud for them, but the reality is the people commiting that fraud today are already using fake names, addresses and email. And if services don't have real information and single use card information when they get breached the value of each record is significantly less. So at the end of the day the inconsequential side effect seems to be a win from a breach cost standpoint.

by tribby 7y ago

mfkp 7y ago

Sure, and some companies could send you to collections or something similar, but not many would over a $10/month subscription.

londons_explore 7y ago
More and more have realised that a $10/month subscription is actually the perfect thing to send to collections. They sell it off to a collections company, often for $50 or more. That company adds fees, interest, and charges to the bill ($50 for each letter, etc), and finally takes you to court when the amount owed gets to $3000 or so. The court can't chuck out those extra charges, since they can be seen as a legitimate consequential expense.
- homero 7y ago
  I throw in a fake name and address
  - the_seraphim 7y ago
    well see now thats mail fraud
  - londons_explore 7y ago
    Thats the high risk strategy... After sending 50 letters and court summonses to your fake address, they finally get a court to order your ISP to give the real details, and suddenly you have a $10k claim with the added charge of fraud...
- windexh8er 7y ago
  Except a $10/month Netflix subscription is not a lease, it's a prepaid service. They all state very clearly that if, and when, someone doesn't pay those services are no longer rendered. The gym memberships could be different if the contract is setup to give you your first month free when you sign up for six. But even then most give you some guarantee such as "if you're not satisfied". I think your point is that this type of service creates a cat and mouse game with which there is only a temporary winner. What I do like about this new "trend" is the abstraction of the end user. Netflix doesn't need to know who I am. If I pay I should be able to consume service. I realize this opens the door to more potential fraud for them, but the reality is the people commiting that fraud today are already using fake names, addresses and email. And if services don't have real information and single use card information when they get breached the value of each record is significantly less. So at the end of the day the inconsequential side effect seems to be a win from a breach cost standpoint.