Credit card company will not issue credit.

[worldcom]

I recently opened a charge card with Banana Republic clothing store. I made purchases with Banana prior to opening the account on various other CC, Visa, etc. About two months ago I returned some items with receipts and the credit amount was applied to my Banana Republic card. I went to use the card at a later date and was told the account was "frozen". I contacted the credit company (GE manages the card) and was told that the account was "frozen" because it had a credit balance - aprox $1500. I was told that the only way to correct the problem was to issue me a check. Now Banana will not issue the check because the items were not charged on the Banana charge card in the first place. I was told today that under the circuimstance they will not be able to make a refund or issue a credit. Can I take them to Small Claims Court? I have all of the documentation, receipts, etc. Where would I file - in the jurisdiction that the purchases were made, my home address, or the corporate location? I would like to send a demand for payment letter, any samples or ideas? Are there any other resources I can utilize. I dont want to hire an attorney because it will end up costing more than they owe me.

 

[JETX]

You have absolutely no case against the 'Banana Republic' credit card (GE). Though you think that all the transactions were with BR, they were not. Here is how this works:
You make a $100 purchase at BR using your VISA card. BR pays VISA a merchant fee (about 3-5% of the purchase), so VISA transfers about $95 to the BR account and bills you $100. You pay VISA, everybody is happy.

However, when you return the item to BR, the purchase price is supposed to be credited back to the original purchase card, thereby keeping all the funds in the same account, no harm no foul.

However (somehow???), you managed to 'return' $1500 worth of "some items" and get the credit issued to a completely separate 3rd party, who has received no benefit of your card use. (If I were them, I would wonder how you got $1500 in credit without a purchase also!!). Now, you want this 3rd party to just give you $1500, which you never gave THEM. They have every right to 'freeze' your account until this is resolved.

You are going to need to get Banana Republic to fix YOUR mistake and get the credits applied to the correct credit card company.

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!