CC Dispute (Charge Back) question..

Discussion in 'Credit Talk' started by e557373, Aug 8, 2003.

  1. e557373

    e557373 Well-Known Member

    Hi all,

    I had a question about disputed charges on a CC - not sure if this is the best board for it, but I've always gotten good answers here before!

    Anyway, it's a standard Cap1 card... I have $1000 balance on it now and will be charging another $1700.

    q1) How long does the chargeback period apply? I've heard that it's 60 days from the day they mail the statment it shows up on... but I get my statements online. Would it be 60 days from the date it's available?

    q2) I'm only charging it to get the charge back protection. If I pay off the $1700 right after charging it do I lose my protection? How about if I pay $1000, leaving a balace equal to the charge ($1700) on there?

    Also - has anyone dealt with Cap1 about chargebacks? Are they easy to work with or not?

    If you're wondering, it's for an auto repair that's been done by a local shop and I want to make sure I have recourse if it wasn't done correctly, or the shop won't honor the warranty.

  2. arobinson

    arobinson Well-Known Member

    Capital One is EXTREMELY fair in chargeback situations, trust me..I know from experience..they are one of the most fair banks out there. Household is 2nd in my opinion for chargebacks.
  3. e557373

    e557373 Well-Known Member

    Called cap 1 dispute dept about this... she recommended that I leave a balance at least equal to the amount of the charge I may end up disputing on the card. Also, you have statement close + 60 days to dispute.
  4. Jaboom97

    Jaboom97 Well-Known Member

    She is right, as reg Z will only allow you to dispute quality disputes in the amount of the unpaid balance. So if you paid it off you would be SOL, unless the issuing bank provides additional assistance.

    Remember it is absolutely important while disputing for a quality of Auto repair, to do the following:

    Give the original merchant a second chance effort to correct their mistake. This is highly important, so don't do what most people do

    I.e. Take your auto to Mechanic A to fix the problem XYZ.
    Problem XYZ still remains after you have already paid Mechanic A $500.00. You are mad at Mechanic A and take the auto to Mechanic B to correct problem XYZ that Mechanic A wasn't able to fix or unable to fix properly.

    In this situation the issuing bank would be Unable to assist you with the quality of auto disputes as Visa and MasterCard policy are strict with regards to Quality of Car Repairs, the consumer/cardmember must give the first merchant a second chance effort to correct the problem. If the merchant refuses or doesn't fix it the second time around, well then you have made your valid attempt to resolve with the merchant. But you do have to make a valid attempt.

    These type of disputes require plentiful amounts of documentation, so please keep good records, and make copies of all invoices, work orders etc. Send copies to your issuing bank.

    Visa and MasterCard highly recommend that you also supply a second opinion letter if the problem is not fixed after the second attempt. It is not mandatory for the first time chargeback, but if a merchant represents or rebuttals the case(trust me they will) your Bank will already have this documentation to supply to the merchant. It is important to have already given your Bank this second opinion information as the time frames during representments become more limited and it may become a long heated battle sometimes going to a Visa/MasterCard compliance issue between issuer and acquirer.(Your bank Vs the Merchant Bank) Usually of which only go to arbitration if the amount is greater than $X,XXX. dollars. Otherwise the issuing Bank will take an Operational Loss for the cardmember.

    The second opinion letter should be done by a similar merchant in the same proffesion, and it should be clearly written or typed on merhcant official letterhead supporting your claim that the work wasn't done correctly...(this also applies to Dr's Dentist's,etc, Visa/MC rule of thumb, if it took a proffesional to fix the problem and actually didn't solve it, then it is going to take a professional to provide a second opinion to rate the first professionals faults, mistakes etc.)

    Reg Z also limits the Quality for claim or defense being within 100 miles of your home, and the qulaity dispute must be more than $50.00, which usually the issuing bank changes to any amount and not hold you liable for anything $0.00--hence banks $0.00 liability policies, but please check with your bank first.

    Lastly, remember to check your state laws before filing a quality dispute with the merchant/mechnaic as some states permit mechanics etc to place mechanics liens on auto's and reposess the parts or work performed by them if you dispute the charges they have charged you. So please be very careful before fully pursuing the case and your issuing bank can't always guarantee a positive outcome--especially with a quality dispute, but usually the bank will issue provisional credit until the dispute is resolved which could take up to 90 days.

    Your bank or Visa MasterCard does not offer/can't offer legal asistance so if the dispute isn't resolved to your desired outcome, you can always pursue other avenues to restore monetary/damges losses etc. Vut your bank can't legally say seek the professional help of an attorney etc. Just would like to let you know firsthand.

    I hope this information is helpful.


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