Can I be reported to debt collectors and credit bureaus after a chargeback is settled in my favor?

[Taxing Matters]

It was my bank that told me the case is settled and also that the temporary credit is permanent.

Then that reflects just the bank's take on it. The bank made its decision and as far as the bank is concerned the matter is settled, the credit is permanent and you need not pay the bank. But the online provider may still believe you owe it the money. If so, it may still seek to collect. It just won't be able to do it by charging your credit card.

Also, any idea what would the SOL for New York state?

Quincy has already answered that question. You can find a handy chart of the NY statutes of limitation for various types of legal actions on the NY courts web site. Note that the six years starts to run at the time you breach the contract. But why did you ask about NY statutes of limitation when you put Florida as the state on your initial post? In what state were you living when you signed up for the online service and where, if different, do you live now? I should also mention that it matters if the contract specifies which jurisdiction's law applies and/or in which jurisdiction any dispute between you is to be resolved and whether there is a requirement in the contract to arbitrate disputes between you.

and on a different note, what if the service provider is located in Europe?

That doesn't change the US law on this at all. But if the service provider is in Europe that would make it even more costly for the service provider to pursue you for this (unless the contract requires arbitration) and thus it would make collection by the online service provider less likely. So how much is involved? The more it is, the more likely it is that the provider might try to collect it.

What kind of service was this? If it was online gambling, that will add an extra layer of complexity to it since US law makes it illegal for Americans to gamble online. See the FBI post on internet gambling for more on that.

 

[joebloggs]

New York state has a 6 year statute of limitations on both written and oral contracts and a 6 year statute of limitations for debt collection. The statute of limitations is the time within which a legal action must be filed.

What amount of money is involved? How much was the total cost of this service? Did you pay monthly or all at once? How long did you use this service before you decided you wanted to cancel it?

Whether it is worth the cost of pursuing a legal action against you for breach of contract depends in large part on how much money the online service lost.

It's a few hundred dollars

 

[Just Blue]

It's a few hundred dollars

Is this a porn service?

 

[bcr229]

Is this a porn service?

I'd guess either porn or gambling. Either way if I were the OP I'd be less worried about getting sued, and more worried about the stiffed service provider activating ransomware that was installed on my computer or phone while using the service.

 

[quincy]

It's a few hundred dollars

It probably would cost the online service more than a few hundred dollars to sue you. And that probably is more than they could hope to recover in damages. This, if they are in fact located in Europe and you are located in Florida.

If sued anyway, though, you could find an attorney in your area to personally review the history of your (brief) relationship with the online service to see if the complaint is valid and to review possible defenses and to help with your Answer to the complaint. A legal aid clinic might be able to help for low or no cost.

In the future, I recommend you do not sign up for any service before checking the company out thoroughly. Check online ratings and reviews. Read and understand all terms and conditions of any agreement you will be entering into, and know what the penalties are for terminating a service early.

Good luck.

 

[zddoodah]

If I dispute a charge on my bank's credit or debit card and the funds are credited back to my card followed by the bank settling the dispute, can the merchant still try to recover the funds from a debt collector or report me to credit bureaus?

Yes. You didn't really think a bank could be the final arbiter of a dispute, did you?

Also, is there a timeframe after the dispute being settled where a merchant can sue me? How many months or years is it?

If the dispute is settled, then there should be no lawsuit. If your intent was to ask about the statute of limitations, it's generally five years after the date of breach.

 

[quincy]

Yes. You didn't really think a bank could be the final arbiter of a dispute, did you?



If the dispute is settled, then there should be no lawsuit. If your intent was to ask about the statute of limitations, it's generally five years after the date of breach.

The statute of limitations is 6 years in New York ... which was the state for some reason mentioned.

 

[joebloggs]

Yes. You didn't really think a bank could be the final arbiter of a dispute, did you?



If the dispute is settled, then there should be no lawsuit. If your intent was to ask about the statute of limitations, it's generally five years after the date of breach.

I found this point on its website's "Limitations of Liability" under its "Terms of Conditions":
"YOU AND WE AGREE THAT ANY CAUSE OF ACTION ARISING OUT OF OR RELATED TO THE SERVICE IN ANY WAY MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ARISES. OTHERWISE, SUCH CAUSE OF ACTION IS PERMANENTLY BARRED. BOTH PARTIES EXPRESSLY AGREE TO WAIVE THEIR RIGHTS TO ANY LONGER STATUTE OF LIMITATIONS."

Does it mean they cannot pursue me more than one (1) year after the chargeback was settled?

 

[Zigner]

I found this point on its website's "Limitations of Liability" under its "Terms of Conditions":
"YOU AND WE AGREE THAT ANY CAUSE OF ACTION ARISING OUT OF OR RELATED TO THE SERVICE IN ANY WAY MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ARISES. OTHERWISE, SUCH CAUSE OF ACTION IS PERMANENTLY BARRED. BOTH PARTIES EXPRESSLY AGREE TO WAIVE THEIR RIGHTS TO ANY LONGER STATUTE OF LIMITATIONS."

Does it mean they cannot pursue me more than one (1) year after the chargeback was settled?

It may very well mean that.

 

[zddoodah]

I found this point on its website's "Limitations of Liability" under its "Terms of Conditions":
"YOU AND WE AGREE THAT ANY CAUSE OF ACTION ARISING OUT OF OR RELATED TO THE SERVICE IN ANY WAY MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ARISES. OTHERWISE, SUCH CAUSE OF ACTION IS PERMANENTLY BARRED. BOTH PARTIES EXPRESSLY AGREE TO WAIVE THEIR RIGHTS TO ANY LONGER STATUTE OF LIMITATIONS."

Its website? Whose website? The bank or the merchant?

 

[quincy]

I found this point on its website's "Limitations of Liability" under its "Terms of Conditions":
"YOU AND WE AGREE THAT ANY CAUSE OF ACTION ARISING OUT OF OR RELATED TO THE SERVICE IN ANY WAY MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ARISES. OTHERWISE, SUCH CAUSE OF ACTION IS PERMANENTLY BARRED. BOTH PARTIES EXPRESSLY AGREE TO WAIVE THEIR RIGHTS TO ANY LONGER STATUTE OF LIMITATIONS."

Does it mean they cannot pursue me more than one (1) year after the chargeback was settled?

Where exactly is the online service located?

 

[joebloggs]

Its website? Whose website? The bank or the merchant?

the merchant's

 

[quincy]

the merchant's

If you agreed to those terms, the waiver should be enforceable. You are not prohibited from seeking legal recourse. But the entire contract needs to be read

 

[zddoodah]

the merchant's

Then that may very well be part of your contract with the merchant and may shorten the statutory limitations period. Parties to contracts are generally free to agree to a limitations period shorter than that provided by statute.

 

[quincy]

"Rights" can often be waived in a contract. But contracts need to be read in their entirety to determine if the terms and conditions are enforceable as written. You should always believe that your signature on a contract will legally bind you to its terms.

If unsure about a contract's contents and what agreeing to the contract means to you, seeking an attorney's personal review of the contract prior to signing can be important.