Personal Finance

[Urgent] CC Charge dispute gone ugly

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  • Feb 23rd, 2010 11:56 am
Mar 11, 2009
11 posts

[Urgent] CC Charge dispute gone ugly

Here's the story:
(Edit: very sorry for the huge *** post but it's serious and I don't want to leave out any detail -all the I know, anyway- that may help)

This guy I know found a weird charge on his mastercard statement (July '09 I think), so he filled it for dispute, and wanted to cancel the card but the CSR closed his current one and gave him a new card (number). On the following statement he found more unauthorized charges! So he filled those as well, etc, etc... Somehow someone got a hold of his cc info and was using it in the US and in Canada buying stuff online.

Few weeks later, he got two letters telling him temp. credits have been added to his account while they investigate. Let's call them "charge 1" (important later on) and "charge 3". No letter were sent for the remaining charges, but all of the disappeared off his statements for like two-three months.

That's when he got calls requesting he write them a letter stating he did not make "charges 4 & 5". Shortly after he notices "charge 1" reappears on his statement, asking him to pay it off. So he calls about it, CSR suggest he writes a letter like the one request for "charge 4 & 5". So he wrote one, stating that he is disputing "charge 4, 5 and 1".

Nothing else is heard of "charge 4 & 5". BUT not "charge 1" because he wasn't paying attention to his statements after sending (fax) that last letter...

So two-ish months later the cc company calls him telling him to clear his balance which is 70-something days past due for "charge 1" (around $150-160 including interest its been racking up). He was shocked lol, and so after reasoning on the phone, the CSR (once again) suggests faxing in a letter stating that "charge 1" is unauthorized and being disputed. Which he did...

(After getting this call he gets a letter saying that his cc is being suspended haha.)

A week after, he gets a call from another CSR saying that it's almost 90 days past due. They suggest he pays it off first (for which his account will be permanently closed at the same time) AND THEN go after the department responsible for investigating these disputes for a refund... Their reasoning for this is so that his credit does take a hit. He has about two days left to decide on this before the so called "90 days past due".


So should he really pay it off first and then go after them for the refund OR should he ignore them and demand they get this **** fixed first, which would mean him not having to pay (two CSR's he talked to mentioned that if the charge is cleared, he could get the interest on the charge waived as well).

The reason he doesn't want to pay is because
1) he really didn't make the transaction
2) he's worried that once he's paid it off, it will be a bigger PITA getting the refund from the cc company, "at least now they're actively following my case" he says :-0

What should he do? And would his credit really take a huge hit for having a 90 days past due charge? He isn't really focused on getting this cleared up but this guy is family, so I'm worried about him and wanna try to help lol.

Holy crap, sorry for the huge *** post but this is serious and I don't want to leave out any detail -all the I know, anyway- that may help.

Thanks very much for reading all this.
Please advise, much appreciated!
5 replies
Deal Addict
User avatar
Sep 26, 2007
3960 posts
Oh man, if that's a huge post, the attention span of the generation is the equivalent to that of a gnat's.

I had a similar problem with my mbna mastercard, i had canceled my subscription with a company but they charged me $200, which is odd because the subscription was only $20 bucks and there was no cancellation fee. But i paid it off anyways and i called the bank and told them about it. they said they would investigate and update me. it took weeks for them to get back to me. they sent me a copy of "the proof" and it was just a slip and it said automatic rebill and had my name on it. eventually it went away and i had a positive balance on my credit card.

I wouldn't care about the credit rating, it is probably already affected. Personally i would have paid it off earlier even if i knew it was from identity theft. (unless it was for an insane amount) And then i would have told the bank about it. If he does get a new credit card, i recommend checking the balance online frequently. In his situation i would not pay for it. It's already too messy and it'll be easier to get a new credit card from somewhere else and leave this one in hell. (apply for a new one before his credit sinks lower lol)
Mar 11, 2009
11 posts
Hmm, maybe I'll edit out the "long post warning" from the title then, more people will click in that way :razz:

Anyways, thanks for the reply.
I see what you mean, but the problem is that the cc company is on his *** about that last charge of ~$150, probably $160+ by now. So he can't really just leave it lol. Getting a new cc is not an issue either as this is not his main credit card anyways.

I guess the question I need urgent answers for is:
Should he pay it off before the "90 days overdue" date and go after the cc company for a refund. Or have them go after him instead and demand that they finish investigating, without paying them.

And if he does the latter, how badly can his credit dive? lol

Thanks again.

(BTW I just noticed that I never mentioned the mastercard/company in question, lol. Cause I don't know if I should...)
Deal Fanatic
User avatar
Nov 23, 2005
8261 posts
Here is some info for all the noobs and disputing a transaction.

The "letter" a cc company sends you is essentially an affidavit stating you did not authorize that transaction, you sign it, return it and they take it further from there.

If you lets say have 5 unauthorized transactions, and you get a letter including only 3, then you write the other 2 transactions by hand and send it back to CC company. That way, all 5 transactions are going to be disputed.

As far as your friends case is concerned, I would have him call in and get the # to their disputes department and deal directly with them then. Disputing a transaction can get quite complex, and he needs to be speaking to someone in that department so he can have this issue resolved.
Deal Addict
Mar 14, 2005
1793 posts
Is the CC Company MBNA by any chance?!?
Deal Addict
Nov 27, 2005
2886 posts
I've had to dispute charges twice.

First time on my AMEX where a charge for Denny's appeared. The card was never activated or used for years. So I don't know how they charged it. AMEX removed it easily.

The second time was my Ultramar MC. I gave it to the cashier to pay for lunch and forgot to take it back. Didn't realize until the next day. By then my MC was maxed out (super low limit though). I called the CC company and they said they would investigate and call me back. The next day they called and said all the fraudulent transactions had been removed and left on a couple that they knew were mine (automatic payments).

So I haven't had much difficulty disputing any charges...