Using fraud clause on credit card
Jun 7, 2015 | 10:59 pm
#1
Original Poster
Join Date: May 2011
Location: ORD
Programs: AA LTG, Marriott LTP. 50% Delta LTS, Working on Hyatt LTD
Posts: 676
Using fraud clause on credit card
I tend to use my credit cards to easily categorize my spending and get rewards, but from time to time I need to reverse the charges against a merchant for double charges and fraudulent charges.
Recently I purchased some art objects based on the assurance that it would meet a certain appraised value. Skeptical, when I returned home I had them locally appraised and found that they were worth approximately half of the purchase price. I'm considering calling it fraudulent and asking to reverse the charges for the difference.
Any reason that wouldn't be valid? Thanks for the insight!
Recently I purchased some art objects based on the assurance that it would meet a certain appraised value. Skeptical, when I returned home I had them locally appraised and found that they were worth approximately half of the purchase price. I'm considering calling it fraudulent and asking to reverse the charges for the difference.
Any reason that wouldn't be valid? Thanks for the insight!
Jun 7, 2015 | 11:10 pm
#2
FlyerTalk Evangelist
Join Date: Aug 2001
Location: RSW
Programs: HHonors - Diamond; IHG - Diamond; Marriott Bonvoy - Platinum
Posts: 14,288
I tend to use my credit cards to easily categorize my spending and get rewards, but from time to time I need to reverse the charges against a merchant for double charges and fraudulent charges.
Recently I purchased some art objects based on the assurance that it would meet a certain appraised value. Skeptical, when I returned home I had them locally appraised and found that they were worth approximately half of the purchase price. I'm considering calling it fraudulent and asking to reverse the charges for the difference.
Any reason that wouldn't be valid? Thanks for the insight!
Recently I purchased some art objects based on the assurance that it would meet a certain appraised value. Skeptical, when I returned home I had them locally appraised and found that they were worth approximately half of the purchase price. I'm considering calling it fraudulent and asking to reverse the charges for the difference.
Any reason that wouldn't be valid? Thanks for the insight!
Jun 8, 2015 | 12:33 am
#3
Join Date: Apr 2011
Location: SMF
Programs: Hilton Diamond-Marriott Platinum-life
Posts: 1,015
Quote:
Originally Posted by 2tall4economy
I tend to use my credit cards to easily categorize my spending and get rewards, but from time to time I need to reverse the charges against a merchant for double charges and fraudulent charges.
Recently I purchased some art objects based on the assurance that it would meet a certain appraised value. Skeptical, when I returned home I had them locally appraised and found that they were worth approximately half of the purchase price. I'm considering calling it fraudulent and asking to reverse the charges for the difference.
Any reason that wouldn't be valid? Thanks for the insight!
What effort have you made to work it out with the seller first?
Originally Posted by 2tall4economy
I tend to use my credit cards to easily categorize my spending and get rewards, but from time to time I need to reverse the charges against a merchant for double charges and fraudulent charges.
Recently I purchased some art objects based on the assurance that it would meet a certain appraised value. Skeptical, when I returned home I had them locally appraised and found that they were worth approximately half of the purchase price. I'm considering calling it fraudulent and asking to reverse the charges for the difference.
Any reason that wouldn't be valid? Thanks for the insight!
What effort have you made to work it out with the seller first?
Jun 8, 2015 | 1:58 am
#4
Original Poster
Join Date: May 2011
Location: ORD
Programs: AA LTG, Marriott LTP. 50% Delta LTS, Working on Hyatt LTD
Posts: 676
Seller provided a document noting the appraisal amount but when he shipped the items he didn't include the document.
Seller is in a foreign country; "returning" the items would require a trans-Atlantic plane ticket
Seller is in a foreign country; "returning" the items would require a trans-Atlantic plane ticket
Jun 8, 2015 | 5:07 am
#5
Join Date: Jul 2009
Location: Washington, DC
Programs: DL PM; Hilton Dia; Marriott Titanium/LT Gold
Posts: 8,515
Using fraud clause on credit card
If the seller can produce documentation saying you agreed to a charge of X for these items, the credit card company will likely not honor your dispute. It is not the burden of a credit card company to insure you against differing appraisals or purchasing items without an independent appraisal. Your proper recourse would be a fraud claim in court, at best. That or caveat emptor.
Jun 8, 2015 | 5:25 am
#6
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,253
A lot will depend on how much is involved, your ability to produce the two appraisals and the reasons for the differences. In your second response you note that you made the purchases overseas. It is not uncommon for appraisals in two countries to differ substantially as the value of an item can differ substantially.
Jun 8, 2015 | 6:42 am
#7
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA, IHG & Marriott Platinum; DL & HH Gold
Posts: 51,885
The Fair Credit Billing Act only provides protection against unsatisfactory quality if you first make an effort to resolve the issue directly with the merchant -and- the purchase was made in your home state or (if in another state) within 100 miles of your home:
http://finance.yahoo.com/news/rights...120000782.html
6. Dissatisfied with a credit card purchase? You can temporarily withhold payment.
If you're unhappy with a purchase and have a justifiable complaint about its quality, the act also grants you the right to delay paying that specific charge on your credit card bill until your complaint is resolved. However, you can't invoke this right until you've gone to the merchant first, says Wu, so move fast.
"You have to make a good faith effort to solve the problem with the merchant directly," she says. Contact the merchant as soon as you have a legitimate complaint about a good or service. If the merchant refuses to work with you, then "you can raise the complaint with the credit card company." To do so, tell your credit card company that you've been unable to resolve the problem with the merchant and are invoking your right to "withhold payment" on that purchase.
Once you complain to your issuer and ask them to charge back the purchase, the issuer must refrain from reporting the delinquent payment to the credit bureaus until your dispute with the merchant is resolved.
Your issuer might also decide to investigate the complaint on your behalf, but it's not obligated to settle the issue for you, says Feddis. "They can be the broker," she says. "If there's insufficient evidence, then they step out of it."
To take advantage of this protection, your purchase must cost more than $50 and you have to have bought the product or service in your home state or within 100 miles of your mailing address -- unless you purchased the product or service using a store card from the merchant. In that case, it doesn't matter how much the purchase cost, nor does it matter where you live. Your purchases are still protected.
"Internet purchases are a little tricky," says Wu. The right to withhold payment for Web purchases depends on state law. If your home state doesn't recognize this right, you may be out of luck.
Tip: Don't pay off your credit card bill until you've examined all the charges. You can't ask for a refund under this provision if you've already paid your credit card bill in full, says Wu. "If you've paid the amount that's being disputed, then you can't withhold payment."
If you're unhappy with a purchase and have a justifiable complaint about its quality, the act also grants you the right to delay paying that specific charge on your credit card bill until your complaint is resolved. However, you can't invoke this right until you've gone to the merchant first, says Wu, so move fast.
"You have to make a good faith effort to solve the problem with the merchant directly," she says. Contact the merchant as soon as you have a legitimate complaint about a good or service. If the merchant refuses to work with you, then "you can raise the complaint with the credit card company." To do so, tell your credit card company that you've been unable to resolve the problem with the merchant and are invoking your right to "withhold payment" on that purchase.
Once you complain to your issuer and ask them to charge back the purchase, the issuer must refrain from reporting the delinquent payment to the credit bureaus until your dispute with the merchant is resolved.
Your issuer might also decide to investigate the complaint on your behalf, but it's not obligated to settle the issue for you, says Feddis. "They can be the broker," she says. "If there's insufficient evidence, then they step out of it."
To take advantage of this protection, your purchase must cost more than $50 and you have to have bought the product or service in your home state or within 100 miles of your mailing address -- unless you purchased the product or service using a store card from the merchant. In that case, it doesn't matter how much the purchase cost, nor does it matter where you live. Your purchases are still protected.
"Internet purchases are a little tricky," says Wu. The right to withhold payment for Web purchases depends on state law. If your home state doesn't recognize this right, you may be out of luck.
Tip: Don't pay off your credit card bill until you've examined all the charges. You can't ask for a refund under this provision if you've already paid your credit card bill in full, says Wu. "If you've paid the amount that's being disputed, then you can't withhold payment."
Jun 8, 2015 | 7:22 am
#8
FlyerTalk Evangelist
Join Date: Sep 1999
Location: New York, NY, USA
Posts: 12,810
Jun 8, 2015 | 8:00 am
#9
Join Date: Nov 2010
Location: Traveling some where hopefully
Programs: AS, AA Gold, and Hilton
Posts: 1,953