Unreceived
Merchandise
Billed
for Merchandise You Never Received?
Here's
What To Do.
You found
the perfect set of linens in a mail order catalog. You call to
place your order and charge it to your credit card. You're told
that your linens should arrive in two weeks. Two weeks go by,
then three and four, and still no linens. What you do get is your
credit card bill with a charge from the catalog company.
So, just what
do you do when you get a credit card bill but no merchandise?
Get frustrated, to be sure.
But the error
can be corrected. The Fair Credit Billing Act (FCBA) and the Mail
or Telephone Order Merchandise Rule offer protections and procedures
for consumers so they don't have to pay for merchandise they ordered
but never received.
In addition,
many credit card issuers have policies against merchants charging
a credit card account before shipment. If you think a merchant
charged your account prematurely, report it to the credit card
issuer. Otherwise, the credit card issuer has no way to know that
the merchant is not complying with its policies.
The
Fair Credit Billing Act
To dispute a billing error on your credit card, you must:
* Write to
the credit card issuer at the address for "billing inquiries,"
not the address for sending your payments (the address for billing
inquiries is often found on the back of your most recent monthly
statement); include your name, address, account number and a description
of the billing error. A sample letter is included on page 3.
* Send your letter so that it reaches the credit card issuer within
60 days after the first bill containing the error was mailed to
you.
* Send your letter by certified mail, return receipt requested,
so you have proof of what the credit card issuer received. Include
copies (not originals) of sales slips or other documents that
support your position. Keep a copy of your dispute letter.
* It is important to send the letter to the correct company. In
the case of Visa and MasterCard, you should send it to the bank
that issued the card.
The credit
card issuer must acknowledge your complaint in writing within
30 days after receiving it, unless the problem has already been
resolved. And the credit card issuer must resolve the dispute
within two billing cycles (but not more than 90 days) after receiving
your letter.
What
happens while your bill is in dispute?
You may withhold payment on the disputed amount (and related charges),
during the investigation, but you must pay any part of the bill
not in question, including any finance charges on the undisputed
amount.
The credit
card issuer may not take any legal or other action to collect
the disputed amount and the related charges (including finance
charges) during the investigation. While your account cannot be
closed or restricted, the disputed amount may be applied against
your credit limit.
You placed
an order with a catalog company and they charged your credit card
immediately. The catalog company contacts you two weeks later
and says the shipment will be delayed 60 days. You agree to the
delay. The 60 days have passed and you don't have the merchandise.
Can you still dispute the charge?
Maybe. In
delayed shipment situations, credit card issuers often are more
generous when they calculate the time for allowing disputes. To
take advantage of this flexibility, include the following information
in your dispute letter.
* Tell the
credit card issuer if the premature charge was unexpected. Some
credit card issuers make an exception to the general industry
rule against merchants charging before shipping if the merchant
tells you about its practice at the time of sale. If you're certain
the merchant said nothing or wasn't clear about its charge practice,
the credit card issuer is more likely to allow the dispute.
* Tell the credit card issuer when delivery was expected. In no
delivery situations, some credit card issuers will use the expected
date of delivery rather than the charge date as the start time
for you to dispute charges. If you dispute the charge within a
reasonable time after the expected delivery date passes, chances
are good that the credit card issuer will honor the dispute. When
you order or when a merchant notifies you of delayed shipment,
it's important to keep a record of the promised shipment or delivery
date. Include a copy of any documentation of the shipment or delivery
date when disputing the charge with your credit card issuer.
What
if you used a debit card to pay for the merchandise?
The consumer protections for a debit card fall under the Electronic
Fund Transfer Act and may differ from protections for a credit
card under the FCBA. So you may not be able to dispute a debit
and get a refund for nondelivery or late delivery. Still, some
debit card issuers voluntarily offer protections and solutions
to problems like the failure to receive merchandise bought with
a debit card. Contact your debit card issuer for more information
about particular policies and protections.
What
if you financed your purchase through the merchant?
If you financed your purchase through the merchant, you also may
have protections under state and federal law. Check your credit
contract for the following language: Notice: Any holder of this
consumer credit contract is subject to all claims and defenses
which the debtor could assert against the seller of goods or services
obtained with the proceeds hereof. It means that you may be able
to claim that the seller failed to deliver the goods as stated
in your credit contract.
Sample
Dispute Letter
Date
Your Name
Your Address, City, State, Zip Code
Your Account Number
Name of Credit Card Issuer
Billing Inquiries
Address, City, State, Zip Code
Dear Sir or
Madam:
I am writing to dispute a billing error in the amount of $______on
my account. The amount is inaccurate because the merchandise I
ordered was not delivered. I ordered the merchandise on (date)
. The merchant promised to deliver the merchandise to me on (date)
, and the merchandise was not delivered. (In addition, when I
ordered the merchandise, the merchant did not tell me that it
would charge before shipping.)
I am requesting
that the error be corrected, that any finance and other charges
related to the disputed amount be credited to my account, and
that I receive an accurate statement.
Enclosed are
copies of (use this sentence to describe any enclosed information,
such as sales slips, payment records, documentation of shipment
or delivery dates) supporting my position and experience. Please
correct the billing error promptly.
Sincerely,
Your name
Enclosures:
(List what you are enclosing.)
The
Mail or Telephone Order Merchandise Rule
This rule covers merchandise you order by mail, telephone, computer
and fax. It requires merchants to have a reasonable basis for
claiming they can ship an order within a certain time.
Ship
Dates
* By law,
a merchant should ship your order within the time stated in its
ads or over the phone. If the merchant doesn't promise a time,
you can expect it to ship your order within 30 days.
* The shipment "clock" begins when the merchant receives
a "properly completed order." That includes your name,
address and payment (check, money order or authorization to charge
an existing credit account - whether the account is debited at
that time or not).
* If the merchant doesn't promise a shipping time and you are
applying for credit to pay for your purchase, the merchant has
an additional 20 days (50 days total) to establish the account
and ship the merchandise.
Delays
If the merchant is unable to ship within the promised time, it
must notify you by mail, telephone, or email, give a revised shipping
date and give you the chance to cancel for a full refund or accept
the new shipping date. The merchant also must give you some way
to exercise the cancellation option for free, for example, by
supplying a prepaid reply card or staffing a toll-free telephone
number.
* If you
ignore the option notice, and the delay is 30 days or less, it's
assumed that you accept the delay and are willing to wait for
the merchandise.
* If you do not respond - and the delay is more than 30 days -
the order must be canceled by the 30th day of the delay period
and a full refund issued promptly.
If the merchant
can't meet the revised shipping date, it must notify you again
by mail, email or telephone and give you a new shipping date or
cancel your order and give you a refund.
* The order
will be canceled and a refund issued promptly unless you indicate
by the revised shipping date that you are willing to wait.
* If you do not respond at all to the second notice, it's assumed
that you are not willing to wait, and a full refund must be issued
promptly.
Refunds
If you authorized a charge to your credit card account, the merchant
must credit the account within one billing cycle - not give credit
toward another purchase. If you pay by cash, check or money order,
the merchant must mail you a refund within seven working days.
Tips
for Shopping by Phone, Mail or Online
* Consider
your experience with the company or its general reputation before
you order. If you've never heard of the seller, check on its physical
location and reputation with the local Better Business Bureau
or the state Attorney General's office.
* Ask about the company's refund and return policies, the product's
availability and the total cost of your order before you place
your order.
* Get a shipment date.
* Keep records of your order, such as the ad or catalog from which
you ordered; the company's name, address and phone number; any
shipment representation the company made to you and when it made
it; the date of your order; a copy of the order form you sent
to the company or, if you're ordering by phone, a list of the
items and their stock codes and the order confirmation code; your
canceled check or the charge or debit statement showing the charge
for your order; and any communications to or from the company.
* Track your purchases. When you order online, keep printouts
of the web pages with the details of the transaction, including
the merchant's return policies, in case you're not satisfied.
Contacts
for Resolving Problems
If you have
other problems with your purchase, try to resolve your dispute
with the company. If that doesn't work, the following resources
may be helpful:
* State and
local consumer protection offices. Contact the offices in your
home state and where the company is located.
* The Direct Marketing Association (DMA). Write:
DMA Mail
Order Action Line
1111 19th Street, N.W., Suite 1100
Washington, D.C. 20036-3603
* Postal
Inspectors. Call your local post office and ask for the Inspector-in-Charge.
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