PDA

View Full Version : Need help with disputing unauthorized charges on CC



anamika
12-28-2007, 03:49 PM
Hi all,
To make a long story short, I was planning to sign up DD for a gym class. I called the place, gave them my CC number (stupid, stupid me) and while talking to the lady, I changed my mind and decided not to go ahead and sign up. I told her not to charge my CC and I would call back in 10 mins if I was interested. Never called back. They called my DH twice or thrice to ask we were still interested. The next CC statement has a charge for $220 from them.
I have been trying to dispute the charge but I just got a letter from the CC company that I need to pay!! I can't believe it. It's a completely unauthorized charge. And the CC company said something like it will be reported as non-payment and I may have to pay fees.
Anyway, my question is what do I do next? DH is saying to fight more - what steps should we take for this? TAlk more to the CC? It sounds like they've washed their hands off the matter. Who else can we talk to? Is it worth the time and stress?
Or should just cut my losses and write it off as a lesson learned?
I really don't want to let them get away with this and I'm completely burned up that they may get away with it but I also don't want to waste more energy and time if it's a lost cause, iykwim?
Thanks for any help.

I'm attaching the long and gory details as I sent to my CC company.
---------------------------------------------------------------------

This is in response to XYZ's claim that I signed up my daughter for a gymnastics lesson with them.
I initially filled out a form on their website asking me for details of my child. I then went ahead and called XYZ to get further details. As I recall from my conversation, I asked about availability of space in the class. I was told that spaces were available. I gave my credit card number over the phone. I was then informed that there is an additional $40 charge for registration (no mention of this charge was made before this point nor did I find it on the website). At this point I was hesitant to continue but I wanted to get more information before I decided. I asked them about their refund policy in case my daughter, who is 3, did not like the class. I was told that they did not give refunds only credit to use at XYZ. I had my reservations about this policy and so at this point, I very clearly and emphatically told the lady I was speaking to not to charge my credit card (she still had the number) as I needed to think about this and also discuss it with my husband. I also told her very clearly that I would call back in 10 mins if I decided to go ahead and sign up.
I did not call her back in 10 mins (or ever again, in fact!). I had absolutely no clue that they had in fact gone against my instructions and signed me up for a class. As such I did not check the email account I had given them until much after the class had started. They also did not intimate in their phone messages that my daughter was in fact signed up. I also never received a receipt from XYZ for the unauthorized charge made to my card. The documentation provided by them is irrelevant in light of the fact that the charges were not authorized by me.
I found another much more suitable gymnastics class for my daughter which ran at the same time on Sat morning and signed her up for that. I also discussed my whole conversation with the XYZ with two of my friends and my husband, all of whom will be perfectly willing to testify to the fact that I did not ever in fact give XYZ permission to charge my card and that I was unhappy with their policies.
I hope my account of the conversation and my actions in signing up my daughter for another class all make it amply clear that I never gave XYZ permission to charge my card or sign up my daughter for a class, even though I gave them my card number.
I am absolutely appalled that they would go against my clearly stated wishes and make an unauthorized charge on my credit card. I reiterate that I never authorized XYZ to charge my card for the purposes of signing up for a class.
I hope this helps resolve the issue but I am also perfectly willing to pursue the matter further, if required.
------------------------------------------------------------------------

Pennylane
12-28-2007, 05:00 PM
What is the reason the CC company is paying the charge? Did they send you a letter letting you know? There is not a signed contract and no products exchanged hands, so I don't know why they would hold you to the charge.

Since you aren't getting anywhere with them, I would pay a visit to the place that charged you. I would talk with a manager and explain what happened and then just demand that they do a refund otherwise you will take them to small claims court. I would also threaten to report them to the BBB and contact local mother's group to let them know about what happened to you.

Is your credit card through a bank that you bank with ? If so I would also speak with a branch manager. Someone on a local level might be of more help.

Good luck, hope it gets worked out.
Ann

JustMe
12-28-2007, 05:12 PM
Yuck. Sorry you are dealing with this. I would first call the cc company, and ask to talk to a supervisor if necessary. Explain the situation again. At the very least, I would want them to guarantee me that I would not have to pay any other fees. If the cc company still says you have to pay for the class, I would let them know you will be canceling your cc. I would then contact the gymnastics place again, ask for a supervisor and nicely try to reason with them. Even tell them you may consider a class there in the future, that you have LOTS of contact with local parents and will be sharing your customer service experience with them...warning them to avoid classes there if you are not helped, etc.

Good luck

anamika
12-28-2007, 05:55 PM
Thanks for the replies. I should have mentioned that we did speak to them before disputing it and they were very rude about it. I really don't want to deal with them anymore, if I can avoid it!
Sometimes I feel I should just let it go and avoid an ulcer but then I think that they are practically stealing my hard earned money ($220 is a lot of money) and I feel we should put up a fight!

katydid1971
12-28-2007, 08:09 PM
Do you have a consumer support thing at one of the local TV stations? You should give them a call. Also Money magazine has a thing you can write into and they help people resolve issues like these. Good Luck!!

KBecks
12-28-2007, 08:22 PM
Take it up further with the CC company. Next time you talk with them, make your correspondence shorter and more to the point. There are too many details to sift through. The facts are that you did not authorize this charge, you gave them your number but did not give permission to make the charge, period.

I would emphasize what a pp said, you did not sign a contract and did not receive any services. You did not give permission for the company to make a charge.

Tell them if this is not resolved to your satisfaction you will cancel your card and I might even threaten to file a complaint with the office of the comptroller of the currency. www.occ.treas.gov I wouldn't go there right away, though, you need to find out what their objection is and let them know they're making a mistake by not supporting you.

Make up your mind you're not paying, period and then go after it. And get an answer asap, don't let it sit.

If your credit card fails you (and they should not), then go back to the gym and be aggressive and then you talk about how you will report your poor experience to the BBB, the media and everyone in your network, at school, etc, etc, ec, if they don't make it right.

Good luck! You should not have to pay this, you did not authorize the charge. They are wrong and should not be paid.

JMarie
12-28-2007, 09:35 PM
Unfortunately, in most CC company's eyes, the transaction is NOT unauthorized. Unauthorized means fraud - you never gave them your number, you don't know how they got it. The situation you explain was a canceled transaction, which is completely different. Depending on what type of CC you used, you will have very different rights. Each type of CC (Visa, MC, etc) has their own rules, and unfortunately, some give more rights to the merchants. Definitely call your CC back and ask to speak to a supervisor.

bisous
12-29-2007, 03:24 AM
I really think you can get your money back if you press hard enough. It sounds like you are a very nice person that doesn't like to have to get nasty but following up on this seems very important if nothing else because it is for A LOT of money! I can't even imagine being charged that much merely for giving out my card information. I wish I had more BTDT info but I would vigorously pursue the CC angle. Then I would follow up with an involved conversation with the management at the gym. I would go to small claims court in a heartbeat if I were you if that's what it meant and I would seriously play up the local news/connection angle if nothing else. Keep us posted on what happens--this is seriously so frustrating! Good luck with everything!

ShanaMama
12-29-2007, 08:36 PM
ITA with Karen/ KBecks. You didn't authorize the charge, you shouldn't have to pay. IME if the customer disputes a charge the burden of proof is on the merchant. What proof could they possibly be giving? A recording of your conversation would be in your favor, and the simple fact that they have your cc # doesn't mean they are authorized to charge it.

gatorruth
12-29-2007, 08:58 PM
Can you post something on your local craigslist and forward it to them? Mention how they are not customer friendly, etc... Or you can stand outside one day and tell everyone about your experience... that should make them give you your money back very quickly!! Good luck!

KBecks
12-29-2007, 09:00 PM
I was told that they did not give refunds only credit to use at XYZ.

So in a worst case scenario that the cc company does not support you (even though they absolutely should), you can still get $220 of classes from XYZ?

Even though that would bite, at least you would be getting something for your money.

I do think and hope your CC comes through though. If they do not, I want to know your CC company so I can avoid them.

Thanks!

Marisa6826
12-29-2007, 09:26 PM
Usha-

Post this on Consumerist.com. They thrive on these things, and more often than not, they will get you your money back.

-m

KrisM
12-29-2007, 11:53 PM
Unfortunately, in most CC company's eyes, the transaction is NOT unauthorized. Unauthorized means fraud - you never gave them your number, you don't know how they got it. The situation you explain was a canceled transaction, which is completely different. Depending on what type of CC you used, you will have very different rights. Each type of CC (Visa, MC, etc) has their own rules, and unfortunately, some give more rights to the merchants. Definitely call your CC back and ask to speak to a supervisor.

So, anyone who has ever had my CC number can go ahead and make charges on it? I've "authorized" it because I've given my CC number? That doesn't make sense. I give my number to Amazon.com and I buy stuff. They can't just randomly send me other stuff and charge it to my card just because they have the number!

JMarie
12-30-2007, 01:21 AM
So, anyone who has ever had my CC number can go ahead and make charges on it? I've "authorized" it because I've given my CC number? That doesn't make sense. I give my number to Amazon.com and I buy stuff. They can't just randomly send me other stuff and charge it to my card just because they have the number!
The short answer is no, they can't just randomly charge your account. Even so, the transaction would likely not be considered unauthorized or fraud. There's another category for transactions that post from merchants you frequent, but don't belong to you.

The long answer is, really, it depends. What is your agreement with the merchant? Do you allow them to bill a monthly charge to your account? Is there a continuity program associated with the charge? Did you sign a contract that allows the merchant to bill you a penalty for cancellations? All of these are questions that your CC company would likely ask to understand the true nature of your dispute with the merchant.

Oh, and if they do charge you AND send you merchandise? That's a whole 'nother issue altogether...

anamika
12-30-2007, 12:13 PM
I called the CC company but they're closed till Mon and they were already rude. The gym place probably is closed too.
I filed a complaint with BBB (though they're not accredited) and sent an email to a local news team. I also plan to send an email to Consumerist (Thanks, Marisa) but it is a local operation, so not much hope there. I also posted on my local moms groups asking for advice on local agencies that can help and to let people know.
I hope something comes through! $220 is a lot of money to pay for a phone call!!
Thanks for the help and urging me to fight. Fingers crossed!

JustMe
12-30-2007, 12:15 PM
Good luck! You should not have to pay this. Keep us posted.

Please be sure to post your cc company when you feel comforable doing so, or pm those of us who want to know! I can't imagine my cc company being rude to me!

egfmba
12-30-2007, 12:33 PM
Isn't this theft? Can you contact local police and ask them what to do? I'd say this is the same as buying something online, they charge your card but never send the product. That's taking your money and not providing services in return. Even if you gave them your CC number, they didn't have your authority to charge your card. You haven't signed anything, nor have you started classes. They owe you a refund, especially since you indicated you never intended to start classes.

Call your state's attorney general, and the better business bureau. Also, if they're licensed by ANY state agency, contact that agency and report them. Make their lives as miserable as possible and they'll regret having stolen your money. Contact a lawyer and find out if you have any rights. It may be worth a consultation with an attorney to find out if you have any legal basis for a complaint, even if the cost to pursue it is too much. At least you can tell the thieves that you have the law on your side.

Good luck!
eva