Jump to content

Getting ahead of Chargeback fallout


Recommended Posts

Hi everyone -

 

I've come here to seek advice on a situation that could escalate.

 

Background:

I had a landscape company install a tree in my yard this summer. Despite watering and proper care, the tree began to die within a couple weeks. It was further damaged when it started to lean because of improper installation, and the landscape company had to come back out and stake the tree. I did everything the landscape company said over the course of the next 4 months to save the tree. Ultimately it died and the merchant blames me for improper care. They very early started to say that the tree wasn't getting enough water and eventually after a few months said that it drowned from too much water.

 

Actions:

I asked if we could work out some sort of resolution, but they were not open to it. I then asked for a replacement under warranty, which they also refused. Finally, I asked for a refund, which they immediately shut down.

 

I then called my credit card company - Capital One and requested a chargeback. They promptly credited the charge and told me that if the merchant doesn't respond in 90 days, the case will be closed. If they do respond, Capital One would ask me for follow up information. Capital One made it clear that they were on my side when it comes to disputes, which is great.

 

Concern:

However, I have been involved with a situation in the past where a disgruntled merchant who a lost a chargeback dispute then sent the debt to a collection agency. I promptly dismissed the collection agency after sending a debt validation letter. That was the end of it.

 

I am anticipating that something similar could happen here. I would like to know what thoughts and advice everyone would have to offer. Is it common for a merchant to go to a collection agency after losing a credit card dispute? What happens if a debt validation letter doesn't work? Will I just end up in an endless game of back and forth with a collection agency?

 

Link to post
Share on other sites

2 hours ago, cv91915 said:

How much money are we talking about here?

 

What were the terms/conditions of the warranty/guarantee?

It's around $1000.

 

The landscape company is not sharing details on the warranty and has said they evaluate each situation case by case. In my particular case, they said that nothing is covered which has been very frustrating.

Link to post
Share on other sites
1 hour ago, pidgeynerd said:

It's around $1000.

 

The landscape company is not sharing details on the warranty and has said they evaluate each situation case by case. In my particular case, they said that nothing is covered which has been very frustrating.

I don't know where you are going with this if you don't have the warranty in writing and you can't articulate its terms.

 

I wouldn't ruin my credit over $1,000.  Pay the credit card bill, write a bad Yelp review, and then sue them in small claims court. 

 

Be prepared for the judge to ask you why you believe there is a warranty/guarantee.

Link to post
Share on other sites

Yep...what CV said. 

 

Unless it was in writing, you don't have any manner of 'warranty' on a tree unless you had some manner of protection through the card used for the purchase.  But that puts you going through THEIR claims process and not the landscape company.  Do not forget, also, that instead of trying to hire a collection entity, the landscape entity could simply sue YOU and attempt to place a lien on the property.   

Link to post
Share on other sites

when we had 40k in landscaping put it it was clearly indicated in writing what the warranty was on trees, irrigation system, and plants. Two fruit trees died within warranty and the company made no fuss to replace them. I still have all the paperwork as the irrigation system is still under warranty. Note we did not go with the lowest bidder.

 

What do you have in writing, such as the bid, that might denote the warranty?

Link to post
Share on other sites
3 hours ago, centex said:

Yep...what CV said. 

 

Unless it was in writing, you don't have any manner of 'warranty' on a tree unless you had some manner of protection through the card used for the purchase.  But that puts you going through THEIR claims process and not the landscape company.  Do not forget, also, that instead of trying to hire a collection entity, the landscape entity could simply sue YOU and attempt to place a lien on the property.   

I am concerned about the possibility of a lien as well. I haven't experienced one before. How does that typically work? Can they just do that? How could it lay out? Just trying to learn.

Link to post
Share on other sites
2 hours ago, pidgeynerd said:

I am concerned about the possibility of a lien as well. I haven't experienced one before. How does that typically work? Can they just do that? How could it lay out? Just trying to learn.

Yeah, they could put a contractor's lien on the property for work done on the property and not paid. Depends on the state. They might be limited to materials. Listen to CV and centex. Pay the bill and sue them in small claims. You've got a shot there.

Edited by cashnocredit
Link to post
Share on other sites
1 hour ago, cashnocredit said:

Yeah, they could put a contractor's lien on the property for work done on the property and not paid. Depends on the state. They might be limited to materials. Listen to CV and centex. Pay the bill and sue them in small claims. You've got a shot there.

I actually looked into this but the service was completed 4 months ago. My state only allows residential liens filed within 60 days after the completion of work. So it's over the time limit unless there is some workaround.

 

If they lose the dispute with the credit card company, then the likely route is now a collection agency. I know the validation letter is the first thing you should respond with and I've never had to do anything more. However, what does a collection agency have to provide to move past a validation letter?

Link to post
Share on other sites
19 hours ago, pidgeynerd said:

I actually looked into this but the service was completed 4 months ago. My state only allows residential liens filed within 60 days after the completion of work. So it's over the time limit unless there is some workaround.

 

If they lose the dispute with the credit card company, then the likely route is now a collection agency. I know the validation letter is the first thing you should respond with and I've never had to do anything more. However, what does a collection agency have to provide to move past a validation letter?

There is no absolute requirement to what would be viewed by a Court of competent jurisdiction as materials responsive to a 'validation letter.' Some States also have provisions in law that benefit its citizens far better than federal law does.  If the matter DOES go to a third party, do NOT send generic crap...anything you send disputing the claim NEEDS to be tailored to YOUR situation!

Link to post
Share on other sites
21 hours ago, pidgeynerd said:

I actually looked into this but the service was completed 4 months ago. My state only allows residential liens filed within 60 days after the completion of work. So it's over the time limit unless there is some workaround.

 

If they lose the dispute with the credit card company, then the likely route is now a collection agency. I know the validation letter is the first thing you should respond with and I've never had to do anything more. However, what does a collection agency have to provide to move past a validation letter?

Instead of planning to deal with a CA, why not take the advice regarding the small claims option? Was this a large tree? I just look over our invoice and the most expensive unusual, special order fruit tree I had installed was $400 inclusive of labour, irrigation, etc.

 

I hope they did more than a single tree for $1,000.

Link to post
Share on other sites
3 hours ago, hegemony said:

Instead of planning to deal with a CA, why not take the advice regarding the small claims option? Was this a large tree? I just look over our invoice and the most expensive unusual, special order fruit tree I had installed was $400 inclusive of labour, irrigation, etc.

 

I hope they did more than a single tree for $1,000.

So , withdraw the dispute with the credit card company first and then take it to small claims?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Member Statistics

    • Total Members
      182,469
    • Most Online
      2,046

    Newest Member
    Rongotti55
    Joined
×
×
  • Create New...

Important Information

Guidelines