Credit Card fee for payment

[oozze]

What is the name of your state (only U.S. law)? CA

On my other post, I explained that I had a small fire at my home. everything went well, until the end where the case assigned to local adjuster and he didnt do his work. And, to top it off, the cleaning company AR doesnt care.

So to summarrized:

5/12 - I received notice intent to lien with deadline 5/20/10 on my property.
5/13-5/14 - posted in the forum; contacted the contractor again , my insurance agent and finally contaacted the local adjuster's boss.
5/17 - Local adjuster did new comparison (revised the invoice sent my cleaning company, there are few typos)
5/19 - supplement check issued.
5/24 - check arrived and deposited into bank (5 days fund hold).
6/1 - expected to pay cleaning company.

I update every single significant time with the cleaning company AR. However, my property still goes into lien. So, i am furious. I am furious from the beginning because I put my trust to them that they will take care everything, but at the end, AR person just dumped everything to me and expected me to pay them in advance if I dont want to get my property lien.

On the notice of lien, she wrote that I can pay with credit card. I am thinking to amend this, I want to get some rewards. Not bad, 23k worth of rewards.
Now, she wants to charge 3% fee if I use credit card fee because of the amount so high. Actually, I dont want to bother with it, but I am really pissed-off with her, so i am giving her a hard time.

Is that legal? Can she do that. She didnt wrote this on her cover letter on notice intent to lien.

Advice appreciate it.

 

[Antigone*]

What is the name of your state (only U.S. law)? CA

On my other post, I explained that I had a small fire at my home. everything went well, until the end where the case assigned to local adjuster and he didnt do his work. And, to top it off, the cleaning company AR doesnt care.

So to summarrized:

5/12 - I received notice intent to lien with deadline 5/20/10 on my property.
5/13-5/14 - posted in the forum; contacted the contractor again , my insurance agent and finally contaacted the local adjuster's boss.
5/17 - Local adjuster did new comparison (revised the invoice sent my cleaning company, there are few typos)
5/19 - supplement check issued.
5/24 - check arrived and deposited into bank (5 days fund hold).
6/1 - expected to pay cleaning company.

I update every single significant time with the cleaning company AR. However, my property still goes into lien. So, i am furious. I am furious from the beginning because I put my trust to them that they will take care everything, but at the end, AR person just dumped everything to me and expected me to pay them in advance if I dont want to get my property lien.

On the notice of lien, she wrote that I can pay with credit card. I am thinking to amend this, I want to get some rewards. Not bad, 23k worth of rewards.
Now, she wants to charge 3% fee if I use credit card fee because of the amount so high. Actually, I dont want to bother with it, but I am really pissed-off with her, so i am giving her a hard time.

Is that legal? Can she do that. She didnt wrote this on her cover letter on notice intent to lien.

Advice appreciate it.

They cannot tack on the 3% just because you want to use a credit card. They can offer you a cash discount to pay cash, but not charge you a fee if you pay with a credit card.

Let them know that you know this is illegal, and if they insist on charging the 3% you will file your complaint with Visa/Master Card Association.

The vendor will be at risk of having their license to process with Visa/MC yanked. Visa/MC do not tolerate the violation of their merchant agreements.

 

[justalayman]

Let them know that you know this is illegal, and if they insist on charging the 3% you will file your complaint with Visa/Master Card Association.
.

Illegal or not allowed per their merchant agreement?

 

[Antigone*]

Illegal or not allowed per their merchant agreement?

I stand corrected

Just an FYI ~ Visa/MC Association is quite the stickler when it comes to adherence to their merchant agreements. Once it is yanked, it is yanked at the company and personal level. Not much chance in that person ever being an officer of a company who can process.

 

[justalayman]

I am sure I have seen an added charge on order forms for some internet shopping in the past. I probably won't be able to find one but you are stating the CC company's have a strict rule against that?

 

[Antigone*]

I am sure I have seen an added charge on order forms for some internet shopping in the past. I probably won't be able to find one but you are stating the CC company's have a strict rule against that?

In some instances they can charge a convenience fee, but there are very strict guidelines when it comes to that. You will typically see convenience fees when it comes to internet shopping, you don't find it very much with brick and mortar or the service industry.

It is however, very typical to offer cash discounts ~ which does not violate the merchant agreement in any way.

 

[oozze]

Hi,
Thank you for your replies.

Can you direct me where I can file complaint with Visa/Mastercard Association?

It doesnt seem that they will budge. I bet if we didnt get the payment yet, they will accept my credit card.

Thank you.

oozze.

Notice of intent to lien:

Dear Mr. oozze:

Thank you for choosing PDR. Enclosed please find an invoice in the amount of $23,329.71 for services rendered. I have spoken to your Insurance and they advised you were paid directly for our services. You will be responsible for payment in full. If payment is not received by May 20, 2010 a Mechanic’s Lien will be placed on the property to secure the debt. Please remit payment to PDR. If you would like to make a payment via credit card, please contact our office.

On the same day, she wrote email to the new adjuster:
Good Afternoon 2nd adjuster,
After reviewing the estimate from 1st adjuster we have notice a few things that were not included. I have listed them for your review and I have also attached the detailed invoices which we separated the structural and content cleaning so it is easier for you to determine the differences.

Things not included in 1st adjuster's Invoice:
Dry Cleaning
Cleaning of Salvageable Items (Paid for Non-Salvageable Items)
Also it shows Carl paid per square foot only and our invoice was billed:
Per square foot and per item based on Xactimate pricing at an overtime rate since it was on the weekend.


Then when they found out I got the payment (I updated them in detail every day, thought she isnt proceeding):

Hello Mr. oozze,
Unfortunately since the amount owed is such a large sum we are not able to take a credit card. The transaction fees would be too expensive.

MY email to them:

Yes. John works hard and We also work too hard for something that we dont need to do.

Like I told John and Michele, I have no complains with PDR in beginning. I WAS SO HAPPY AND BLESSED when I suddenly saw Michele showed up in front of my door and then guided me what to do. I PUT my trust to Michele to take care of me and my wife. I dont trust people easily and Michele makes me feel I can trust her and PDR.

But you and 2nd adjuster ruined this relationship.

Do you think 2nd adjuster will move this fast if we didnt contact his boss?
My wife contacted almost everybody she can contact: John, our realtor, our friends, our insurance agent which finally we got Igor's boss email and phone number. We sent all the emails, notice of lien, and everything to his boss. Thats how this process move fast!

It is very obvious you make it hard for me and my wife.
YOU KNEW.....i didnt get paid but you still go ahead putting us in Lien. Tell me if thats not making it hard for me?

I want to get this over, but I am really mad how we started with a good relationship and ending up me getting the short end of the stick. I even update you on every detail of when payment is cut, when payment is arrived and YOU STILL PUT ME IN LIEN. I still cant figure this out!!!

And now, you want to charge me 3% fee for paying with credit card. I dont see that written every where in your letter. Can you even do that? Let me ask around first.

Here is their last email:
Hello Mr. oozze,
Credit card transaction fees are standard among many companies. I understand you are frustrated with the situation. We have been helping you every step of the way. I know you and your wife also worked diligently to help with the insurance process. Most of the time the insurance process is usually much smoother but unfortunately we ran into a few situations along the way. A Mechanic’s Lien is protecting Paul Davis Restoration & Remodeling by securing the debt it is not a personal choice it is a business decision. Let me know what you would like to do regarding payment and I appreciate your help and understanding. Have a nice day.

 

[Antigone*]

I got this information here: http://usa.visa.com/merchants/operations/no-surcharge.html


California
CALIFORNIA POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES

"No retailer...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means..."

Statute: Cal. Civ. Code § 1748.1(a) (West)

Discounts for Cash Payments are allowed in California

"A retailer may, however, offer discounts for the purpose of inducing payment by cash, check or other means not involving the use of a credit card, provided that the discount is offered to all prospective buyers."

Statute: Cal. Civ. Code § 1748.1(a) (West)

Statutes cover: Credit Cards only

Statute: (Cal. Civ. Code § 1747.02(a) (West) (defining "credit card"))

California State Attorney General – Consumer Complaints

(*external link implies no endorsement by state of California)

Consumer Alerts, Information & Complaints - California Dept. of Justice - Office of the Attorney General

 

[justalayman]

well, now that it appears they cannot charge a service fee for using a credit card, what happens when they say "oh, sorry, we can't accept your card. Please remit a check, cashier's check, or money order for the amount of WOW!!"

 

[Antigone*]

well, now that it appears they cannot charge a service fee for using a credit card, what happens when they say "oh, sorry, we can't accept your card. Please remit a check, cashier's check, or money order for the amount of WOW!!"

I think that's something the OP should take up with Jerry Brown and his staff

 

[oozze]

What should I do now?

I told her that she cant charge that surcharge fee based on the link desribed.

Her replies:
I hope you had a nice holiday weekend. I did receive your email regarding the surcharge on credit card payments. Our policy is to accept one credit card payment of $5,000 or below and if it is above that amount we charge a convenience fee. If you want to avoid that fee we can simply take a check for the full amount due. We appreciate your prompt payment and have a nice day.

So, i hate to give in but my property has been lien by them. According to the letter, each month there is 1 1/2% int fee.
I will definitely fill complain against the company (yelp, BBB and other place should i consider???) and I probably will complain to the state agency as well (per your link).

So, I definitely dont want to pay $700 fee. But, if i dont pay, why did i file complain? So, i am confused now.

 

[swalsh411]

How about paying them and then disputing the fee portion with the credit card after the charge has gone through? it appears to be illegal to charge that fee. (as opposed to just a violation of the merchant agreement).

 

[JakeB]

I would pay what is asked, then write a letter demanding a refund of the surcharge. If such demand is ignored, then I'd sue for 3 times the surcharge. Here's the law:

Any retailer who willfully violates this section by imposing a
surcharge on a cardholder who elects to use a credit card and who
fails to pay that amount to the cardholder within 30 days of a
written demand by the cardholder to the retailer by certified mail,
shall be liable to the cardholder for three times the amount at which
actual damages are assessed. The cardholder shall also be entitled
to recover reasonable attorney's fees and costs incurred in the
action.

 

[tranquility]

What is a "retailer"?

 

[Zigner]

What is a "retailer"?

I already looked at that - it basically covers any non-governmental entity who provides goods or services.