Small business owner. Customer filed chargeback and won't return the merchandise.

[Theo G]

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

A customer from Oregon bought parts from us through our website. Three weeks after the parts were delivered (for which we have proof) he decided he didn't want them and rather than go through a legitimate return process, he instead filed a chargeback with his credit card company saying it was an "unauthorized purchase" on his card.

Visa refunded his $319.75.

Our merchant bank advised us to send him a prepaid shipping label if we wanted the merchandise back.

We provided this customer a prepaid UPS shipping label (three times), however he refuses to send the parts back. He told us (via email) to "come pick them up". His address is nearly 275 miles away so it's not feasible for us to drive to his house to pick up the parts.

He now refuses to respond to any attempt we've made to contact him (phone and email) asking for the parts. We have not threatened him nor been abusive to him in any way. We've been polite with every attempt to get him to send the parts back and he won't do it.

What recourse do we have to get our parts back? Can we get a judgement against this guy for the $319.75 value of the parts he's attempting to scam from us?

 

[sandyclaus]

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

A customer from Oregon bought parts from us through our website. Three weeks after the parts were delivered (for which we have proof) he decided he didn't want them and rather than go through a legitimate return process, he instead filed a chargeback with his credit card company saying it was an "unauthorized purchase" on his card.

Visa refunded his $319.75.

Our merchant bank advised us to send him a prepaid shipping label if we wanted the merchandise back.

We provided this customer a prepaid UPS shipping label (three times), however he refuses to send the parts back. He told us (via email) to "come pick them up". His address is nearly 275 miles away so it's not feasible for us to drive to his house to pick up the parts.

He now refuses to respond to any attempt we've made to contact him (phone and email) asking for the parts. We have not threatened him nor been abusive to him in any way. We've been polite with every attempt to get him to send the parts back and he won't do it.

What recourse do we have to get our parts back? Can we get a judgement against this guy for the $319.75 value of the parts he's attempting to scam from us?

Your recourse is to sue the bad customer. Getting a judgment should be simple if you can prove that he actually has the merchandise, AND has refused to return them with the prepaid shipping label you've provided. Consider that you may have to sue him in HIS jurisdiction and not your own, so you might end up having to drive the 275 miles anyway.

 

[Theo G]

I guess I meant to ask what recourse do we have that doesn't involve actually going to Oregon.

I was hoping that since he did business with us "virtually" in Washington, we could sue him locally in Washington.

This is a scam that every credit card holder in the country can pull over and over and it's the honest small business owner that has to pay the price.

Well, thanks for answering.

 

[Zigner]

I guess I meant to ask what recourse do we have that doesn't involve actually going to Oregon.

I was hoping that since he did business with us "virtually" in Washington, we could sue him locally in Washington.

This is a scam that every credit card holder in the country can pull over and over and it's the honest small business owner that has to pay the price.

Well, thanks for answering.

No, you will need to sue him in OR.

 

[tranquility]

Put a loser pays attorney fees in your sales contracts. Then, you hire an attorney to collect on the concession. You get your sale and the customer pays the attorney to collect.

 

[Theo G]

Put a loser pays attorney fees in your sales contracts. Then, you hire an attorney to collect on the concession. You get your sale and the customer pays the attorney to collect.

Sorry, I don't understand what you are suggesting.

 

[tranquility]

Sorry, I don't understand what you are suggesting.

http://www.bamberger.com/blog/2010/02/loser-pays-attorney-fees-clauses-in-contracts/
http://www.lawforentrepreneurs.com/2010/03/24/the-loser-pays-clause-is-the-entrepreneurs-friend/
http://www.bizfilings.com/toolkit/sbg/run-a-business/assets/shift-risks-by-making-loser-pay-legal-expenses.aspx

Not for the past, but for future issues. ("Consession" was meant to say "conversion" the tort where they withhold your items.)

 

[homebuyer1983]

I have filed chargebacks on items that were seriously defective and on a few I didn't receive. The person filing the chargeback has to do what their credit card company requires of them in their rules regarding chargebacks. Some times, in the case of some of my Paypal transactions I was NOT required to return the merchandise. My credit card company got my money back and I kept the merchandise. The reason I didn't return the merchandise was because it would have cost me money and I didn't think the seller would refund me for returning the merchandise after I filed a chargeback. So, I kept the items.


You can sue them if you want, but if you will be out more money in civil court than it's worth then what's the point? You realize you'll be out about as much in filing fees as you lost for the parts? Besides, your bank didn't say they HAVE to return the merchandise, neither did their cc company. They just told you that if you want the parts back, to send them a label. If they are saying you can pick it up, then they aren't trying to keep it.

And FYI, if a credit card company decides in the customers favor for a chargeback, there was seriously something wrong on your end. That process is really stringent.

 

[Zigner]

I have filed chargebacks on items that were seriously defective and on a few I didn't receive. The person filing the chargeback has to do what their credit card company requires of them in their rules regarding chargebacks. Some times, in the case of some of my Paypal transactions I was NOT required to return the merchandise. My credit card company got my money back and I kept the merchandise. The reason I didn't return the merchandise was because it would have cost me money and I didn't think the seller would refund me for returning the merchandise after I filed a chargeback. So, I kept the items.


You can sue them if you want, but if you will be out more money in civil court than it's worth then what's the point? You realize you'll be out about as much in filing fees as you lost for the parts? Besides, your bank didn't say they HAVE to return the merchandise, neither did their cc company. They just told you that if you want the parts back, to send them a label. If they are saying you can pick it up, then they aren't trying to keep it.

And FYI, if a credit card company decides in the customers favor for a chargeback, there was seriously something wrong on your end. That process is really stringent.

More rubbish - please, just stop.

 

[tranquility]

I have filed chargebacks on items that were seriously defective and on a few I didn't receive. The person filing the chargeback has to do what their credit card company requires of them in their rules regarding chargebacks. Some times, in the case of some of my Paypal transactions I was NOT required to return the merchandise. My credit card company got my money back and I kept the merchandise. The reason I didn't return the merchandise was because it would have cost me money and I didn't think the seller would refund me for returning the merchandise after I filed a chargeback. So, I kept the items.


You can sue them if you want, but if you will be out more money in civil court than it's worth then what's the point? You realize you'll be out about as much in filing fees as you lost for the parts? Besides, your bank didn't say they HAVE to return the merchandise, neither did their cc company. They just told you that if you want the parts back, to send them a label. If they are saying you can pick it up, then they aren't trying to keep it.

And FYI, if a credit card company decides in the customers favor for a chargeback, there was seriously something wrong on your end. That process is really stringent.

"Filing fees" are compensible in a judgment. Keeping merchandise you don't pay for is the tort of conversion and can be sued on even if a third party says (other than a court) says you can keep it. If you use those rejected items, it is considered acceptance and you could be forced to pay the retail value.

See also:
UCC 2-602, 606, 607, 703, 709, 710

 

[Theo G]

I have filed chargebacks on items that were seriously defective and on a few I didn't receive. The person filing the chargeback has to do what their credit card company requires of them in their rules regarding chargebacks. Some times, in the case of some of my Paypal transactions I was NOT required to return the merchandise. My credit card company got my money back and I kept the merchandise. The reason I didn't return the merchandise was because it would have cost me money and I didn't think the seller would refund me for returning the merchandise after I filed a chargeback. So, I kept the items.


You can sue them if you want, but if you will be out more money in civil court than it's worth then what's the point? You realize you'll be out about as much in filing fees as you lost for the parts? Besides, your bank didn't say they HAVE to return the merchandise, neither did their cc company. They just told you that if you want the parts back, to send them a label. If they are saying you can pick it up, then they aren't trying to keep it.

And FYI, if a credit card company decides in the customers favor for a chargeback, there was seriously something wrong on your end. That process is really stringent.

IANAL, but I know some of what you wrote is complete utter crap. I won't even waste my time responding in depth.

 

[tranquility]

IANAL, but I know some of what you wrote is complete utter crap. I won't even waste my time responding in depth.

Smart man. All can write.

 

[tranquility]

Advising people to commit torts because the people they hurt would find it too much of a hassle to call them on it legally is morally deficient and is sure to bite someone when they meet a motivated vendor.

Oh, by the way,

Like I said, I've done a LOT of charge backs and I've kept almost every item I charged back. Nothing anybody could or would do about it because it was too much of a hassle

if you ever did this intentionally, it is called theft.

 

[Theo G]

A couple more questions.

My cousin lives about 20 miles from this guy's house. Can I send him to pick up the parts?

What if I did go to this guy's house and he doesn't give me the parts? What are my options then?

 

[tranquility]

A couple more questions.

My cousin lives about 20 miles from this guy's house. Can I send him to pick up the parts?

What if I did go to this guy's house and he doesn't give me the parts? What are my options then?

Yes, anyone you designate can pick them up. If he does not give them up, sue him.