re: Credit card payments

["Andrew D.Mendez" <AMENDEZ@xxxxxxx>]

Duane wrote:

You buy some "super-pressure cast" wheels on a
no-return closeout from Hott
Rodd and when they arrive you don't like them as
they are plain ole cast
wheels and nothing special. H.R won't take them
back saying they were a
clearance item. Your credit card company will NOT
chargeback on this as you
simply made a bad deal, but did receive the
wheels. They don't care if the
wheels are mis-represented, that's an issue for
the court.
=================================================
Duane-

You clearly know a lot about this credit card
transaction stuff, but I think you're wrong here.
If you have a bona fide dispute with a merchant
(such as here, where they've misrepresented the
wheels; contrast the situation where you just
decide you don't like Zam Peer's double CD of pan
flute renditions of Helen Reddy songs & want your
$$ back), you do NOT have to pay the balance on
your account while the dispute is being resolved,
or pay any interest on this charge. The trick is,
if you're in the midst of a dispute with a
merchant over mail order stuff for the BMW or
anything else, DON'T pay off your balance; you can
assert the dispute with the merchant as grounds
for not paying the card issuer ONLY if the balance
has not been paid off yet (each debit is paid off
in the order it was made for these purposes). As
with the case of the merchant failing to sent you
the goods in the first place, the pendency of a
good faith dispute with a merchant relieves you of
your duty to pay the charge. (I'm not sure if a
chargeback would be done, but from the consumer's
point of view it's irrelevant; the big thing is he
doesn't have to pay unless he loses the dispute --
I.e., in court). 

DISCLAIMER: I am not your lawyer. Do not rely on
this. I'm simplifying things a lot; if you want to
know the whole deal ask your lawyer or go to a law
library & ask to see 15 U.S.C.A. sec. 1661i (Fair
Credit Billiing Act) and 12 C.F.R. sec. 226.12(c)
(fed. regulations on same) (that's what your
lawyer would do & charge you for).
  
Andy '95 M3

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