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pidgeynerd

Merchant Charge back sent to collections

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I need some help and advice. I purchased a dress from a clothing merchant in Asia that ended up being incorrect and damaged. Naturally I asked for a refund but they never responded - they of course didn't want to do it. So I filed a charge back with my credit card and won! So I got my money back, but after a year and a half passed I got a notice from a collection agency stating that I had to repay the debt. How should I handle this? Is it even worth the time and energy for ~$150? The collector said that I have 30 days till it gets posted against my credit score and I don't want that to happen. I only have a little over 2 weeks left.

 

Also something to note is that the Credit Card used isn't mine but is my parents (used with their permission of course). So even though they have my name on the order and shipping address etc. the credit card and payment technically isn't mine. My parents went through the charge back process, I just helped them out through the whole thing. I still need to make sure that nothing happens to their credit but they don't even have their names. The collection agency addressed the debt to me (since it was ordered and shipped in my name).

 

Any help would be greatly appreciated.

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Was it the credit card company that turned the amount over to collections, or the merchant?

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They're collecting on a debt that originated from a charge back purchase made on your parent's card? My eyes aren't good today, but that's what I took away.

Edited by ubercat

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The collection agency is Choice Recovery dot com

 

And the merchant turned it over to them which after doing research I found out that this can happen.

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The collection agency is Choice Recovery dot com

 

And the merchant turned it over to them which after doing research I found out that this can happen.

 

 

At Choice Recovery, we discovered something simple: empowered consultants recover more for our clients. That’s why we equip them to be leaders—with the power to approach each consumer in a unique way. Our clients love it because we can collect what other agencies can’t.

 

 

Empowered collection agents? Sounds like added incentive for them to break the law.

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Send a validation letter ASAP and cement your rights to dispute this. If you send a validation letter in the first 30 days they cannot report the debt to credit bureaus or continue collection activity until they respond to your request for validation.

 

Use the google search, look for a thread titled "validation, it is your savior." you can also search for letter templates using the google site search. Send the letter certified, preferably with return receipt requested. But at least certified, so you can prove they got it within the 30 period.

 

What site did you use for the original purchase? Many websites offer their own guarantees. For instance, Amazon offers the A-Z guarantee. eBay has one, but I forget what it's called. Since the credit card company agreed that you were entitled to a refund, you have some serious ammunition.

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Send a validation letter ASAP and cement your rights to dispute this. If you send a validation letter in the first 30 days they cannot report the debt to credit bureaus or continue collection activity until they respond to your request for validation.

 

Use the google search, look for a thread titled "validation, it is your savior." you can also search for letter templates using the google site search. Send the letter certified, preferably with return receipt requested. But at least certified, so you can prove they got it within the 30 period.

 

What site did you use for the original purchase? Many websites offer their own guarantees. For instance, Amazon offers the A-Z guarantee. eBay has one, but I forget what it's called. Since the credit card company agreed that you were entitled to a refund, you have some serious ammunition.

 

I found this: http://www.creditinfocenter.com/forms/sampleletter9.shtml

 

When I requested proof of debt over the phone, they sent something from the vendor showing the order details etc. Does that not count as validation? Sorry I don't know too much about this so if you could explain it to me that would be great!

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No, do nothing over the phone. The official 30 day dispute must be in writing to preserve your rights, The information at creditinfo center (CIC) is good, except the their SOL data - that is not up to date.

 

When I said use google, I meant the little search box at the top right of each page on CB - it is google site search, and will find the info on CB about validation. But CIC is a good site. Some of us were members there prior to starting CB.

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The Most important part is to ask for Validation before the 30 days are up.

You can use this (Basic- All purpose letter) posted on WhyChat website --> https://whychat.me/ltrcaval.html

WhyChat's expertise is in the Medical Collection HIPAA however, the website have lots of things to learn and language and forms to use.

Follow it Exactly and mail your DV request priority mail

 

COLLECTION AGENCY VALIDATION/DISPUTE/CEASE AND DESIST

Use this IN IT'S ENTIRETY. DO NOT call them .

Use this letter and the included form to make the agency verify that the debt is actually yours and owed by you.

Keep a copy for your files and send the letter Priority Mail WITH PROOF OF DELIVERY ONLY, not certified mail and WITHOUT a return receipt.

 

Your Name

123 Your Street Address

Your City, ST 01234

 

ABC Collections

123 NotOnYourLife Ave

Chicago, IL

 

Date: _________ Priority Mail#____________

 

Re: Acct # XXXX-XXXX-XXXX-XXXX

 

To Whom It May Concern:

 

This letter is being sent to you in response to your attached letter. (If you have nothing in writing use the phrase "recent communication)

This is not a refusal to pay, but a notice that your claim is disputed.

 

Under the Fair Debt Collections Practices Act (FDCPA), I have the right to request validation of the debt you say I owe you. I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation which is binding on me to pay this debt.

 

Your legal staff will agree that compliance with this request is required under the laws of (State name) and Federal Statutes. In addition to the questionnaire below, please attach copies of:

 

 

  • Agreement with your client that grants you the authority to collect on this alleged debt,or proof of acquisition by purchase or assignment.
  • Agreement that bears the signature of the alleged debtor wherein he or she agreed to pay the creditor.

Please also be advised that this letter is not only a formal dispute, but a request that you cease and desist any and all collection activities. Your receipt of this letter will be considered as having granted consent to the taping of any and all telephone calls to me at my home or business by you or your agents or assigns.

 

I require compliance with the terms and conditions of this letter within 30 days. or a complete withdrawal, in writing, of any claim.

 

In the event of noncompliance, I reserve the right to file charges and/or complaints with appropriate County, State & Federal authorities ,the BBB and State Bar associations for violations of the FDCPA, FCRA, and Federal and State statutes on fraudulent extortion.

 

I also hereby reserve my right to take private civil action against you to recover damages.

 

Sincerely,

Your Name (PRINT OR TYPE DO NOT SIGN)

-------------------------------------------

Debt Validation Form

Questionnaire to be returned:

Account #: ____________________

Original Creditor's Name: _________

Name of Debtor: ________________

Address of Debtor: ______________

Balance of Account: _____________

Date you acquired this debt: ______

This Debt was: assigned ___ purchased___

 

Please indicated any credit bureaus to which you have reported on this account:

Experian ______

Equifax ______

TransUnion _____

Edited by Mido

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As an aside, I assume the merchandise was returned for credit and that they failed to follow through. (Not explicitly stated in the facts of this matter.)

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Doesn't the store's merchant agreement with the credit card networks limit the merchant's avenues of recourse when a chargeback is found in the consumer's favor? I would explore this line of thinking if I was OP.

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The Most important part is to ask for Validation before the 30 days are up.

You can use this (Basic- All purpose letter) posted on WhyChat website --> https://whychat.me/ltrcaval.html

WhyChat's expertise is in the Medical Collection HIPAA however, the website have lots of things to learn and language and forms to use.

Follow it Exactly and mail your DV request priority mail

 

COLLECTION AGENCY VALIDATION/DISPUTE/CEASE AND DESIST

Use this IN IT'S ENTIRETY. DO NOT call them .

Use this letter and the included form to make the agency verify that the debt is actually yours and owed by you.

Keep a copy for your files and send the letter Priority Mail WITH PROOF OF DELIVERY ONLY, not certified mail and WITHOUT a return receipt.

 

Your Name

123 Your Street Address

Your City, ST 01234

 

ABC Collections

123 NotOnYourLife Ave

Chicago, IL

 

Date: _________ Priority Mail#____________

 

Re: Acct # XXXX-XXXX-XXXX-XXXX

 

To Whom It May Concern:

 

This letter is being sent to you in response to your attached letter. (If you have nothing in writing use the phrase "recent communication)

This is not a refusal to pay, but a notice that your claim is disputed.

 

Under the Fair Debt Collections Practices Act (FDCPA), I have the right to request validation of the debt you say I owe you. I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation which is binding on me to pay this debt.

 

Your legal staff will agree that compliance with this request is required under the laws of (State name) and Federal Statutes. In addition to the questionnaire below, please attach copies of:

 

 

  • Agreement with your client that grants you the authority to collect on this alleged debt,or proof of acquisition by purchase or assignment.
  • Agreement that bears the signature of the alleged debtor wherein he or she agreed to pay the creditor.

Please also be advised that this letter is not only a formal dispute, but a request that you cease and desist any and all collection activities. Your receipt of this letter will be considered as having granted consent to the taping of any and all telephone calls to me at my home or business by you or your agents or assigns.

 

I require compliance with the terms and conditions of this letter within 30 days. or a complete withdrawal, in writing, of any claim.

 

In the event of noncompliance, I reserve the right to file charges and/or complaints with appropriate County, State & Federal authorities ,the BBB and State Bar associations for violations of the FDCPA, FCRA, and Federal and State statutes on fraudulent extortion.

 

I also hereby reserve my right to take private civil action against you to recover damages.

 

Sincerely,

Your Name (PRINT OR TYPE DO NOT SIGN)

-------------------------------------------

Debt Validation Form

Questionnaire to be returned:

Account #: ____________________

Original Creditor's Name: _________

Name of Debtor: ________________

Address of Debtor: ______________

Balance of Account: _____________

Date you acquired this debt: ______

This Debt was: assigned ___ purchased___

 

Please indicated any credit bureaus to which you have reported on this account:

Experian ______

Equifax ______

TransUnion _____

 

What is likely to happen after I send this? The letter they sent to me after asking for debt verification was order details of the online purchase which shows what I ordered and my payment (Credit Card) information. It appears to be from the merchant along with screenshots from their websites. Does that not qualify as "debt validation"? If so what would they need to provide for "debt validation"?

 

 

Doesn't the store's merchant agreement with the credit card networks limit the merchant's avenues of recourse when a chargeback is found in the consumer's favor? I would explore this line of thinking if I was OP.

 

How would I find that out? The CC used was Visa.

 

As an aside, I assume the merchandise was returned for credit and that they failed to follow through. (Not explicitly stated in the facts of this matter.)

The merchandise was not returned but that was because the merchant stopped responding when I complained and started to ask for a resolution.
Edited by pidgeynerd

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The Most important part is to ask for Validation before the 30 days are up.

You can use this (Basic- All purpose letter) posted on WhyChat website --> https://whychat.me/ltrcaval.html

WhyChat's expertise is in the Medical Collection HIPAA however, the website have lots of things to learn and language and forms to use.

Follow it Exactly and mail your DV request priority mail

 

COLLECTION AGENCY VALIDATION/DISPUTE/CEASE AND DESIST

Use this IN IT'S ENTIRETY. DO NOT call them .

Use this letter and the included form to make the agency verify that the debt is actually yours and owed by you.

Keep a copy for your files and send the letter Priority Mail WITH PROOF OF DELIVERY ONLY, not certified mail and WITHOUT a return receipt.

 

Your Name

123 Your Street Address

Your City, ST 01234

 

ABC Collections

123 NotOnYourLife Ave

Chicago, IL

 

Date: _________ Priority Mail#____________

 

Re: Acct # XXXX-XXXX-XXXX-XXXX

 

To Whom It May Concern:

 

This letter is being sent to you in response to your attached letter. (If you have nothing in writing use the phrase "recent communication)

This is not a refusal to pay, but a notice that your claim is disputed.

 

Under the Fair Debt Collections Practices Act (FDCPA), I have the right to request validation of the debt you say I owe you. I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation which is binding on me to pay this debt.

 

Your legal staff will agree that compliance with this request is required under the laws of (State name) and Federal Statutes. In addition to the questionnaire below, please attach copies of:

 

 

  • Agreement with your client that grants you the authority to collect on this alleged debt,or proof of acquisition by purchase or assignment.
  • Agreement that bears the signature of the alleged debtor wherein he or she agreed to pay the creditor.
Please also be advised that this letter is not only a formal dispute, but a request that you cease and desist any and all collection activities. Your receipt of this letter will be considered as having granted consent to the taping of any and all telephone calls to me at my home or business by you or your agents or assigns.

 

I require compliance with the terms and conditions of this letter within 30 days. or a complete withdrawal, in writing, of any claim.

 

In the event of noncompliance, I reserve the right to file charges and/or complaints with appropriate County, State & Federal authorities ,the BBB and State Bar associations for violations of the FDCPA, FCRA, and Federal and State statutes on fraudulent extortion.

 

I also hereby reserve my right to take private civil action against you to recover damages.

 

Sincerely,

Your Name (PRINT OR TYPE DO NOT SIGN)

-------------------------------------------

Debt Validation Form

Questionnaire to be returned:

Account #: ____________________

Original Creditor's Name: _________

Name of Debtor: ________________

Address of Debtor: ______________

Balance of Account: _____________

Date you acquired this debt: ______

This Debt was: assigned ___ purchased___

 

Please indicated any credit bureaus to which you have reported on this account:

Experian ______

Equifax ______

TransUnion _____

What is likely to happen after I send this? The letter they sent to me after asking for debt verification was order details of the online purchase which shows what I ordered and my payment (Credit Card) information. It appears to be from the merchant along with screenshots from their websites. Does that not qualify as "debt validation"? If so what would they need to provide for "debt validation"?

 

Doesn't the store's merchant agreement with the credit card networks limit the merchant's avenues of recourse when a chargeback is found in the consumer's favor? I would explore this line of thinking if I was OP.

How would I find that out? The CC used was Visa.

As an aside, I assume the merchandise was returned for credit and that they failed to follow through. (Not explicitly stated in the facts of this matter.)

The merchandise was not returned but that was because the merchant stopped responding when I complained and started to ask for a resolution.

This letter is a request for Valudation not Verification and They are most likely to stop collection activity once they get this letter because they will know that they are dealing with someone who knows his/her rights.

Again, DO NOT call or respond to any of their calls. Deal with them only in writing and by snail mail.

 

Whatever they sent you so far ABSLOUTLEY means nothing unless they VALIDATE Not Verify and all they sent you is not a Validation.

 

Do this DV letter asap and follow the instructions as mentioned above and keep copies of all your correspondence even the priority mail track number and receipt because if they didn't comply to your request for Validation and decided to report the account to CRA all your correspondence with them will definitely help you get the account removed/deleted.

 

On a side note:

US Visa CC starts with #4

US MasterCard CC starts with #5

US Discover CC starts with #6011

US Amex CC starts with #34 or 37

 

 

 

 

 

sent from encrypted device

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Are you sure I shouldn't sign the DV letter? Every template I have seen is very similar to yours and they say to sign it. I just don't want to make sure I send it correctly.

 

Edit: Never mind, I looked it up and saw that it doesn't bring any benefit. It just gives the CA the ability to lift it.

Edited by pidgeynerd

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Are you sure I shouldn't sign the DV letter? Every template I have seen is very similar to yours and they say to sign it. I just don't want to make sure I send it correctly.

 

Edit: Never mind, I looked it up and saw that it doesn't bring any benefit. It just gives the CA the ability to lift it.

Signing a letter mailed to CA is way different than signing a letter mailed to CRA.

 

When dealing with CA never sign anything. PERIOD.

 

sent from encrypted device

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Are you sure I shouldn't sign the DV letter? Every template I have seen is very similar to yours and they say to sign it. I just don't want to make sure I send it correctly.

 

Edit: Never mind, I looked it up and saw that it doesn't bring any benefit. It just gives the CA the ability to lift it.

Signing a letter mailed to CA is way different than signing a letter mailed to CRA.

 

When dealing with CA never sign anything. PERIOD.

 

sent from encrypted device

 

 

 

+100.

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All good advice. :)

 

You are making the basic assumption that these people (the CA) is acting in good faith. Change your assumption to this: they will do anything to get that money. They will take your signature and photoshop it onto another document without even thinking about it. They will tell you anything - i.e. they will lie to you. Assume that.

 

There are specific things you have to do to preserve your rights under the consumer protection law. Assume the the people giving you advice here know what they are doing. Read the success stories to see if this stuff works. ;)

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Doesn't the store's merchant agreement with the credit card networks limit the merchant's avenues of recourse when a chargeback is found in the consumer's favor? I would explore this line of thinking if I was OP.


How would I find that out? The CC used was Visa.

 

What happened when you called the bank that issued the card and told them that after finding in your favor on a charge-back this merchant sent you to a collection agency?

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Doesn't the store's merchant agreement with the credit card networks limit the merchant's avenues of recourse when a chargeback is found in the consumer's favor? I would explore this line of thinking if I was OP.

How would I find that out? The CC used was Visa.

 

What happened when you called the bank that issued the card and told them that after finding in your favor on a charge-back this merchant sent you to a collection agency?

 

According to this article from Credit.com

http://blog.credit.com/2015/06/think-you-won-your-credit-card-dispute-not-so-fast-118101/

 

Merchant agreements do not preclude the merchant from trying to collect the payment from the consumer.

 

“If a consumer successfully disputes a charge, the merchant can still attempt to collect from the consumer by challenging the chargeback. This can typically be done by providing documentation that the transaction was valid,” says Shawn Budde, CEO of 2Checkout, a payment processing company. But if the credit card charge is refunded, “Many payment processing systems would not allow a merchant to directly charge a consumer’s card after a chargeback.”

 

However that doesn’t stop them from trying to collect payment directly from consumers. A review of some merchant agreements found online were silent on the issue of whether they can subsequently try to collect from consumers. And when we asked the major card companies whether their merchant agreements restrict this practice, only American Express responded, saying in an email that, “American Express has an established charge dispute process in place that takes into account both the Card Member and the merchant perspectives. Our policies do not prohibit a merchant from seeking to collect payment from a Card Member for a transaction that is charged back to a merchant.”

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Doesn't the store's merchant agreement with the credit card networks limit the merchant's avenues of recourse when a chargeback is found in the consumer's favor? I would explore this line of thinking if I was OP.

How would I find that out? The CC used was Visa.

 

What happened when you called the bank that issued the card and told them that after finding in your favor on a charge-back this merchant sent you to a collection agency?

 

They basically said they are not responsible for the actions of a Merchant. However I will give them a call back and see if I can get to someone willing to help. The person I talked to was not helpful at all.

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Are you sure I shouldn't sign the DV letter? Every template I have seen is very similar to yours and they say to sign it. I just don't want to make sure I send it correctly.

 

Edit: Never mind, I looked it up and saw that it doesn't bring any benefit. It just gives the CA the ability to lift it.

Signing a letter mailed to CA is way different than signing a letter mailed to CRA.

 

When dealing with CA never sign anything. PERIOD.

 

sent from encrypted device

 

 

 

+100.

 

Live proven example of how important Validation vs. Verification happened to me personally and the results came in (TODAY-few minutes ago) :)

 

Last month I mailed DV to CA for an account (that have been hurting the score of EQ - EX - TU for both me and my wife for over 9 months)

 

Before I joined the CB in October 2016 I disputed this account and it came back VERIFIED with bla bla bla from both CA and CRAs.

 

Once i joined the CB and learned the importance of Validation and the difference between Validation vs Verification, I fired off my 1st Validation letter to the CA back in December 13, 2016.

 

Few minutes ago today 1/12/2017 (right before the 30th day mark) I got notification that the entire account have been removed and deleted from EQ and TU (I called both CRA EQ and TU and spoke to the agent and they confirmed the collection account was removed by THE COLLECTION AGENCY themselves back in mid December 2016 'when I mailed them my DV)

 

My score just jumped 37 points and so do my wife. I am just waiting on Experian to update.

 

VALIDATE .. VALIDATE .. VALIDATE :)

Edited by Mido

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