Originally Posted by
margarita girl
So who takes the hit in such a case? The credit card company obviously can’t do a charge back with a bankrupt Sonder. Or will they also be filing a claim in the bankruptcy proceedings?
Originally Posted by
kangarooflyer88
The credit card company will have to eat any loss. This is an inherent risk of issuing credit and is why I pay for everything using credit cards. The case for the chargeback is very simple you bought a service and were informed that they cannot fulfill the service and have since gone out of business. As such you don’t owe the credit card company anything for that transaction and it’s on them to recover the monies if possible from the provider
The credit card companies have probably increased their hold back as the finances of Sonder deteriorated to cover their risk of charge backs. Also there is probably something equivalent to a credit insurance where they take a certain risk coverage.
Additioanlly, they will file claim in the bankruptcy proceedings. But there seems to nothing to come after there, so it will probably not even be a penny on the dollar.
Reminds me, I have to go to PACER and see if the chapter 7 filing is up yet