Disputing Credit/Debit Charges

Have you ever received a damaged product?  Was your restaurant experience terrible?  Did you not receive the product you ordered at all?  What if your travel plans change due to an emergency and the travel supplier is completely uncooperative?
 
Initiating a chargeback is the first step to recovering your hard earned money.  Given the fact that all financial institutions rely on varying cardholder agreements and offer many different benefits to cardholders, it is important that you verify with your financial institution what their rules are for chargebacks and that you request a list of benefits for your card which may assist you.
 
Initiating the Claim - Form of payment
 
Credit
               
If payment was on credit, you will need to make an immediate, detailed, and concise chargeback complaint to your issuing bank.
 
Debit
 
If payment was on debit, you will need to check with your financial institution to determine what, if any, chargeback coverages/protections may apply.
 
Typical Steps of a Chargeback
 
During the chargeback investigation you may withhold payment on disputed charge and/or it will be credited to your account (the disputed amount cannot be applied against your credit limit).
 

• Sometimes the issuing bank will ask for supplemental claim supporting information which you should provide immediately otherwise the claim may be denied

 

• A written decision will be issued by your credit issuing bank and you must dispute any adverse decision within 10 days after receiving the explanation

 

• If the chargeback process fails, you will need to file litigation

 

• The first recommended step would be to file a complaint with the Office of the Attorney General, Consumer Affairs

 

• Link: https://www.mass.gov/how-to/file-a-consumer-complaint

 

• Next, draft a M.G.L. c. 93A letter to the business detailing their unfair and deceptive trade practices/acts/omissions and demand the specific amount you are seeking.  Send one copy by certified mail to their business address and one copy by first class mail to their business address retaining a copy for yourself

 

• Wait at least 30 days plus time for mailing for a response

 

• In the event a favorable response is not received, move on to litigation

 

• In the event the amount in controversy is less than $7,000.00, you may file a small claims case in your local courthouse.

 
Related Attorney Generals Regulation
 

• 940 C.M.R. 15 – Sale of Travel Services
• 940 C.M.R. 3 – General Regulation
• 940 C.M.R. 3.16 – Catchall for Unfair and Deceptive Practices
• G.L. c. 93A – Unfair and Deceptive Trade Practices Act
  

​Sample G.L. c. 93A Demand Letter: https://www.mass.gov/service-details/30-day-demand-letter
 
Other Remedies
 

• Fair credit billing act.  If you feel that your credit card company has wrongfully denied your chargeback, you also can sue a creditor who violates the FCBA. If you win, you may be awarded damages, plus twice the amount of any finance charge — as long as it is between $500.00 and $5,000.00 or higher amounts if a pattern or practice of violations is established.

 
Link: https://www.consumer.ftc.gov/articles/0219-disputing-credit-card-charges