internet gambling debt

[bikerowl]

My son has used credit and debit cards as well as drafts on his checking account for online gambling casinos that amounts to over $15,000. Since their is no remaining money in bank account he is receiving NFS charges for over $5,000 due to the large number of transactions in one evening. He is 21 years old and a student with no history of gambling or bad behavior.
The bank is not willing to drop or reduce the NSF charges and the casino is threating to sent the debt to collections. He wants to challenge the debt and bank charges because the transfer of funds appears to be covered under new internet gambling law.
Any advise welcomed

 

[seniorjudge]

Sorry; he's out of luck.

Have him file bankruptcy and attend Gamblers Anonymous.

 

[sassy104]

out of luck?

why is he out of luck? why can't he call his bank and charge back this debt? in most if not all states Internet gambling is illegal I think? from what I have read Banks not not allowed to let the charges go threw at least on charge cards and debt cards because they can be traced by codes at least he should try and check his state laws let-alone the new fed. law if I am wrong I am sorry sassy104

 

[seniorjudge]

why is he out of luck? why can't he call his bank and charge back this debt? in most if not all states Internet gambling is illegal I think? from what I have read Banks not not allowed to let the charges go threw at least on charge cards and debt cards because they can be traced by codes at least he should try and check his state laws let-alone the new fed. law if I am wrong I am sorry sassy104

Research that law.

Then post back why you are wrong.

 

[sassy104]

maybe you could point me in the right direction? if Internet gambling is not against the law and I am wrong again I am sorry I am truly interested in the truth

 

[Duranie]

Internet gambling is illegal in some states, but it does not mean your son is not obligated to pay back the money he spent.

I suggest enrolling him in gamblers anonymous, close his bank acconts and put a filter on your computer to prevent him from going to gambling sites. Here is a link for some detailed information. He might want to talk to a civil litigation attorney but it is very possible he is in a whole lotta debt and he might have to seek BK protection, which is a shame given he is only 21 and his credit will already be ruined.

http://www.gamblinglawupdate.com/

 

[seniorjudge]

why is he out of luck? why can't he call his bank and charge back this debt? in most if not all states Internet gambling is illegal I think? from what I have read Banks not not allowed to let the charges go threw at least on charge cards and debt cards because they can be traced by codes at least he should try and check his state laws let-alone the new fed. law if I am wrong I am sorry sassy104

sas, who do you think should pay this debt?

The guy who made the debt or you and me?

 

[sassy104]

I see what your saying, I hope he has good support .

 

[seniorjudge]

I see what your saying, I hope he has good support .

I hope he has money to pay his bills.

I am tired of paying other peoples' bills!

 

[The_Counsel]

It is illegal to collect on internet gambling debt and you are both right and wrong seniorjudge. Look at the UIGEA and past court cases where individuals went to court to sue the banks that processed these transactions. But in the longrun we all pay due to higher interest rates. If it goes into collections, from transactions made from your checking acct, it is not collectible. They know it and you should to. I have a son who gambled 18,000 through his checking acct and couldnt pay. it went through 2 collection agencies, and eventually was dismissed.

 

[STLAtty]

Collection of internet gambling debts is a very gray area of the law. Some states had laws in place while others had attorney generals take positions that internet gambling was illegal prior to passage of the UIGEA. If you reside in one of these states and you have a debt collector after you for past internet gambling debts, not only do you have a basis to contest the debt, you also may have a cause of action against the collection agency under the Fair Debt Collection Practices Act for illegal debt collection activities. The FDCPA allows recovery of $1000 per violation, actual damages, attorney fees as well as a provision for class actions which can allow a punitive damage recovery up to $500,000. There's even an argument to be made that such activities implicate a civil RICO statutes concerning collection of unlawful debts which would allow residents of states that don't have laws in place prohibiting internet gambling to file claims under the FDCPA. I'm aware of a law firm in St. Louis looking into filing a class action lawsuit against one or more debt collection agencies based on this fact scenario.