I had a customer file a chargeback with their credit card company because they were "unhappy with the services provided". My credit card com...

Question

I had a customer file a chargeback with their credit card company because they were "unhappy with the services provided". My credit card company and I disputed this chargeback through Mastercard. I provided a signed credit card slip, a copy of the invoice, a hand written note from the customer describing what they wanted, before and after photos, along with a lengthy explanation of what the customer wanted and what I delivered. Mastercard still ruled in favor of the customer. I have 3 questions.

1) I was told by me credit card company that if a customer files a chargeback as unhappy with the services, unless they rescind the claim, Mastercard will rule in their favor. Is this true?

2) I was told by my credit card company that if I file a dispute and Mastercard finds in favor of the customer that I can pursue the matter further. Is this true? And would further pursuit include filing a civil suit?

3) The customer feels that because Mastercard ruled in their favor and issued the chargeback, they are no longer responsible for the debt. Is there a section of law that states a decision by Mastercard does not make a debt invalid? That states it simply is a refusal to pay because the customer is unhappy?

Answer

The fact that the cc merchant ruled in favor regards to the chargeback is dispositive that they are legally entitled to their money back. It only means that say MasterCard did not find that there was sufficient reason to rule against the customer. There is no "section of law" it is common sense. MC is not a court but rather a third party intermediary.

If you believe that this resulted in unjust enrichment or that you went unpaid for services rendered you are 100% entitled to file a claim, Here in the NY, the award cap at the small claims court is 5K and non lawyer is required unless you doing so on behalf of a legal entity. Assuming the amount is not in excess of that AND the other party is also located in NY, then I would just file a claim there, which you can do online and for a fee of $20.

If they are out of state, this complicates things because the SCC will not apply to an out of state defendant. You are free to file in the SCC in their state and you should consider that, but it will require a trip unless the filing provokes a settlement.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

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DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.