credit card transaction dispute - California

[upendra]

Hi there,
I purchased a product from a website (based in NY) with the mail-in-rebate offer.

The credit card which I used to purchase the product sent me a email confirmation that it would protect the transaction in case if the company closed down before I receive/encash the rebate cheque.

After purchasing the product, before sending the rebate cheque the website filed for bankruptcy.
Now the credit card company is refusing to protect the transaction saying that, purchasing the product and rebate processing are two seperate transactions.
Since I received the product from the website the the credit card company is refusing to protect the transaction.

But I would have returned the products, had I known that the credit card company wouldn't protect my transaction.

I have all the prior communication with the credit card company stored in emails.
Is there a way to legally protect my transactions?

Thanks in advance.
-upendra

 

[JETX]

The credit card company is correct. They are only required to 'protect you' in very specific circumstances (as dictated by the FCBA - Fair Credit Billing Act). And that is what they did. BTW, you can read the FCBA at http://www.ftc.gov/

The rebate offer was a completely separate 'contract' between you and the seller and, as such, is totally irrelevant to the 'covered' sale.

You will have to wait in line with all the other unsecured creditors.

 

[upendra]

Thanks for your reply.
As for the mis-communication sent from the credit card company,

I enquired about their protection well before (about 45 days) the website filed for bankruptcy, and I received a reply (in email) stating that they would protect the
transaction.
At that time, I had enough time to return the product.
Since the credit card said they would protect I didn't
worry about the transaction.

It was their mis-communication which caused me this loss.
At this situation can I still claim this from the credit card company?
Thanks in advance
-upendra

 

[thongyoi]

I also have a same problem as you. Just to let you know that you're not the only one who fall in this situation. My credit card company also refused to dispute the transaction. I guess I know which company you talked about. It seem like a fraud company. They set up the price so high and lied to consumer that they will get the 100% rebate. Did you received the letter from their attorney? It said that we could filed the document, but did not tell when is the date to file. It said to be sent separate, but I didn't get it yet.
Also, go to the website called http://www. ecomplaitns.com and check out all the complaint about this site. Some got the bouncing check.

[Edited by thongyoi on 07-29-2001 at 12:32 AM]

 

[JETX]

Upendra:

The apparent confusion seems to be in what you are defining as "the transaction".

Please furnish the exact wording that you used when asking about this protection AND the exact wording that they responded making you beleive that the rebate portion of your 'transaction' was also covered.

I think if you look at this objectively, you will find that the credit card company was protecting you in 'the' transaction (that being the sale of the item). You have interpreted that coverage to mean both the sale AND the rebate offer.

Again, please furnish exact words used.

 

[upendra]

Thanks for your reply.
I meant the entire purchase (purchase of the product + mail-in-rebate offer) as a transaction.
I have appended the messages sent back and forth to the credit card company.

Message I sent to American Express:

Scenario:
1. I Purchase a product from a website with a mail-in-rebate offer on
01-Dec-2000 using the Amex platinum cach rebate card.
2. I receive the product and send the mail-in-rebate form.
3. Per the website, The mail-in-rebate completion might take 12-16 weeks
from the date of transaction.
4. I pay the bill (in full) to Amex for the transactions made.
5. Lets assume that the website that offered the products closed down on
01-Mar-2001. (Before sending me the rebate check or before I encash the
rebate check)
In the above scenario can I still protect my transaction
by claiming it as a disputed transaction?
Is there any time limit to claim the disputed transactions?
Basically how do I protect my transaction?
Is there any limit on this?
Can you let me know.
Thanks


The reply I received from American Express:
Dear Upendra Nerilla:
Thank you for your E-mail!

In response to your message, you will be able to protect
your transactions. Additionally, you are able to initiate
a billing dispute, and there is no limit to the amount of
disputed transactions you have.

You may be interested to know about the American Express
Purchase Protection Plan; this plan covers for theft or
accidental damage of retail items for 90 days from date of
purchase. Items must be purchased with an eligible
American Express Card.
Please note that this coverage is in excess of other
collectible coverage.
For further coverage details, please contact the Purchase
Protection area directly by calling 1-800-322-1277 (24
hours/7 days.
Have a great day!
Sincerely,

/R. Post
Email Servicing Team
American Express Interactive Services

[Edited by upendra on 07-29-2001 at 01:20 PM]

 

[JETX]

As stated before, it is clear to me that the problem is the interpretation of 'transaction'. American Express gives you certain protections during your TRANSACTION. This has absolutely nothing to do with the secondary issue of rebates, which are directly between YOU and the seller and are not tracked or monitored by (or a liability of) American Express.

However, if you still insist on taking action against American Express, go to you bank and withdraw a 'wheelbarrow full of money'. That is what it will take for you to hire an attorney (in THEIR homecourt or federal court), arrange for travel to depositions, trial, mediations, etc. Then, if you win, you will be awarded the amount of your rebate.

BTW, how many thousands of dollars is this rebate???

 

[upendra]

Halkat,
Thanks for your reply.
The transactions are for a few hundred dollars it is not
worth spending 'wheelbarrow full of money'.
I would have to wait for the bankruptcy court.

How does the bankruptcy court decide about the payments due?
few cents for each dollor to each creditor?
or some other method?

-upendra

 

[JETX]

Your answer depends on the type of bankruptcy protection requested by the petitioner.

If a Chapter 7 (Liquidation), the petitioners assets will be liquidated and the creditors will be paid out of the proceeds. In reality, this means you are more than likely to get nothing.

If a Chapter 11 (Business Reorganization), then the company would stay in business and attempt to pay the creditors based on a formula of 'amount can pay' over say 3 years, divided by the amount claimed by creditors. Say that they 'can pay' $36,000 over the next three years, if the total creditor claims is $144,000.00, then each creditor will get 1/4 of his claim ($0.25 on the $1.00).