The Motley Fool Discussion Boards
Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Consumer Dispute becomes Credit Problem?||Date: 12/11/2012 7:26 PM|
|Author: joelcorley||Number: 306513 of 310650|
You wrote, I am involved in a consumer dispute with an online merchant. Their website mentioned a 100% product guarantee, but they are unwilling to send me return instructions for returning the item in question.
I filed a dispute with my credit card issuing bank. This bank likes me a lot because I give them a lot of business and always pay early or on time. In the rare cases that I have had disputes, they usually credit me immediately and charge back the merchant.
You have a right to do this under the Fair Credit Billing Act. However, I'm not entirely sure if it relieves you of an obligation to pay the merchant.
Also, This time the merchant has been charged back and has now sent me a nasty email indicating she intends to turn me over to the credit bureaus with a negative commment....
Um....I paid for the item, in a timely manner.
Do merchants wield this much power that they can send negative information to the credit bureaus over a consumer product dispute - NOT a financial/payment dispute?
Technically the merchant can be viewed as a creditor, so yes they can report something about you to the CRAs. In this case it sounds like she's going to claim you failed to pay for merchandise received.
Others may correct me, but I was under the impression that the credit card merchant agreement forbids this type of action if the credit card company finds against the merchant in a dispute. The reason for this is that the Fair Credit Billing Act allows you to hold the credit card company jointly liable for damages incurred by the merchant. In this case, you could have *theoretically* sued them for damages associated with the merchant's failure to honor her warranty. (Tho