How to Dispute Credit Card Fraudulent Charges
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Posted: Mon Sep 13, 2004 5:24 am
Post subject: How to Dispute Credit Card Fraudulent Charges
mark costell
Date: 3/22/2001 9:35 pm CDT
Hello,
I have an excellent credit rating (well over 10 years) and have had no credit problems previously. Recently, when I rented a truck I received a fraudulent credit card charge of $207.49 dollars. I paid the amount I legitimately owed ($106.99) and contacted the organizations headquarters about these fraudulent charges. I also contacted my credit card company about these fraudulent charges. The credit card company is currently running a dispute investigation.
My question is this:
I have an excellent credit card rating but feel very strongly about not paying for these fraudulent charges. I do not want to pay these fraudulent charges in any case. However, if the credit card company does not agree with me I am concerned (and I don't pay these fraudulent charges) if I don't pay this fruadulent charge it will adversely affect my credit card rating. What is the process for an organization to try and change my excellent credit card rating? Can they just contact a credit card reporting agency and this automatically goes on my credit record with out my knowledge? Should I pay this fraudulent charge if the credit card company does not find in my favor (NOTE: They have already paid the truck organization and I believe they are just interested in getting their money regardless of who is right or wrong.)
What are the consequences of me refusing to pay this fraudulent charge? What actions can I take to protect my credit card rating (short of paying this fraudulent charge)?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Mon Sep 13, 2004 5:24 am
Post subject: How to Dispute Credit Card Fraudulent Charges
Ira Stoller
Date: 3/23/2001 4:16 pm CDT
You used the proper term. The credit card company will "investigate" the incident. They will contact the merchant and compare your story with their story and make a determination of who they feel is right. While the investigation is going on you are not required to pay the amount in dispute and no finance charges will accrue. They have, I believe, 90 days (somebody correct me if I'm wrong) to complete their investigation and get back to you with the results. They may say you're right and the disputed item has been permanently removed, in which case it's as if it never happened, or they could say that the merchant is right. If the latter, at that time the amount will be reposted as a charge on your card. That charge will be treated as as any other new charge with regard to finance charges.
What if you still refuse to pay the charge? Depends on how you use the card. For instance, if you spend, say, $250.00 per month on the card and pay in full every month, you'll start to accrue finance charges on the unpaid balance. If you continue to pay your new charges each month, finance charges will continue to accrue. You can then pursue the matter further if you'd like, but since as far as the card company is concerned you're paying more than the minimum, it will have absolutely no effect on your credit rating since your payments will never be late.
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Posted: Mon Sep 13, 2004 5:25 am
Post subject: How to Dispute Credit Card Fraudulent Charges
Eugene
Date: 3/24/2001 0:26 am CDT
They have, I believe, 90 days (somebody correct me if I'm wrong) to complete their investigation and get back to you with the results.
Actually, there are several deadlines all the three parties have to meet. When the CCC receives a dispute (which has to be within 60 days from the date they sent you the statement), it's forwarded to the merchant and they have 30 days to reply. If they don't, you win the dispute. If they do, the CCC considers it and then has three options:
1. They decide the merchant is wrong, you win the dispute.
2. They decide the merchant is right and send you a letter telling you why. The disputed amount becomes owed, due as of next statement. (I am not sure if this last part is a law but during my dispute through Citibank they told me that. I pay the balance in full every month, so it might be different if you don't, or with another CCC).
3. They request additional information from you or from the merchant. The party has 30 days to reply, or it looses the dispute. This is the last request for clarification, from you OR from the merchant. If the reply is found unsatisfactory, the party looses the dispute.
So, it can drag on for months, actually. Good part is, you do not owe the disputed amount during the investigation, and you do not owe finance charges on it if you win. Not sure about laws if you loose, but in my situation the CCC told me I will in no case owe finance charges, even if I loose but pay the ex-disputed amount by the due date of the first statement after the investigation completion date.
Another comment. Mark, your credit rating is irrelevant to dispute situations. Disputes are regulated by law, and the outcome does not depend on the rating, with the creditor or with anybody else.
If you loose and want to contest the decision, I think you have to go to banking authorities (Office of the Comptroller of the Currency in the state of the CCC, perhaps?) Ask the CCC, they must tell you. I've never gone that far, so I don't know.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Mon Sep 13, 2004 5:24 am
Post subject: How to Dispute Credit Card Fraudulent Charges
mark costell
Date: 3/22/2001 9:35 pm CDT
Hello,
I have an excellent credit rating (well over 10 years) and have had no credit problems previously. Recently, when I rented a truck I received a fraudulent credit card charge of $207.49 dollars. I paid the amount I legitimately owed ($106.99) and contacted the organizations headquarters about these fraudulent charges. I also contacted my credit card company about these fraudulent charges. The credit card company is currently running a dispute investigation.
My question is this:
I have an excellent credit card rating but feel very strongly about not paying for these fraudulent charges. I do not want to pay these fraudulent charges in any case. However, if the credit card company does not agree with me I am concerned (and I don't pay these fraudulent charges) if I don't pay this fruadulent charge it will adversely affect my credit card rating. What is the process for an organization to try and change my excellent credit card rating? Can they just contact a credit card reporting agency and this automatically goes on my credit record with out my knowledge? Should I pay this fraudulent charge if the credit card company does not find in my favor (NOTE: They have already paid the truck organization and I believe they are just interested in getting their money regardless of who is right or wrong.)
What are the consequences of me refusing to pay this fraudulent charge? What actions can I take to protect my credit card rating (short of paying this fraudulent charge)?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Mon Sep 13, 2004 5:24 am
Post subject: How to Dispute Credit Card Fraudulent Charges
Ira Stoller
Date: 3/23/2001 4:16 pm CDT
You used the proper term. The credit card company will "investigate" the incident. They will contact the merchant and compare your story with their story and make a determination of who they feel is right. While the investigation is going on you are not required to pay the amount in dispute and no finance charges will accrue. They have, I believe, 90 days (somebody correct me if I'm wrong) to complete their investigation and get back to you with the results. They may say you're right and the disputed item has been permanently removed, in which case it's as if it never happened, or they could say that the merchant is right. If the latter, at that time the amount will be reposted as a charge on your card. That charge will be treated as as any other new charge with regard to finance charges.
What if you still refuse to pay the charge? Depends on how you use the card. For instance, if you spend, say, $250.00 per month on the card and pay in full every month, you'll start to accrue finance charges on the unpaid balance. If you continue to pay your new charges each month, finance charges will continue to accrue. You can then pursue the matter further if you'd like, but since as far as the card company is concerned you're paying more than the minimum, it will have absolutely no effect on your credit rating since your payments will never be late.
archive
Posted: Mon Sep 13, 2004 5:25 am
Post subject: How to Dispute Credit Card Fraudulent Charges
Eugene
Date: 3/24/2001 0:26 am CDT
They have, I believe, 90 days (somebody correct me if I'm wrong) to complete their investigation and get back to you with the results.
Actually, there are several deadlines all the three parties have to meet. When the CCC receives a dispute (which has to be within 60 days from the date they sent you the statement), it's forwarded to the merchant and they have 30 days to reply. If they don't, you win the dispute. If they do, the CCC considers it and then has three options:
1. They decide the merchant is wrong, you win the dispute.
2. They decide the merchant is right and send you a letter telling you why. The disputed amount becomes owed, due as of next statement. (I am not sure if this last part is a law but during my dispute through Citibank they told me that. I pay the balance in full every month, so it might be different if you don't, or with another CCC).
3. They request additional information from you or from the merchant. The party has 30 days to reply, or it looses the dispute. This is the last request for clarification, from you OR from the merchant. If the reply is found unsatisfactory, the party looses the dispute.
So, it can drag on for months, actually. Good part is, you do not owe the disputed amount during the investigation, and you do not owe finance charges on it if you win. Not sure about laws if you loose, but in my situation the CCC told me I will in no case owe finance charges, even if I loose but pay the ex-disputed amount by the due date of the first statement after the investigation completion date.
Another comment. Mark, your credit rating is irrelevant to dispute situations. Disputes are regulated by law, and the outcome does not depend on the rating, with the creditor or with anybody else.
If you loose and want to contest the decision, I think you have to go to banking authorities (Office of the Comptroller of the Currency in the state of the CCC, perhaps?) Ask the CCC, they must tell you. I've never gone that far, so I don't know.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 1:34 PM
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