Credit Card Problems

Last month I placed an order with Petstore.com. They double shipped it and double billed it even though I only placed one order. I think they have some major glitches with their ordering system. Anyhow, I called Petstore.com to return the merchandise and was told they would contact me in about a month with an RMA and call tag, I would have to be available for a UPS pickup (I'm never home during the day), return the merchandise that I didn't order and THEN wait for a refund of the second charge. Blech!

So, I called Citibank's customer service
department to dispute the charge. I was told by a Citibank Supervisor, Operator #3628 (I believe her name was Jamie), that I was
not allowed to dispute the charge. I would have to return the merchandise before being able to initiate a dispute. She stated that
as long as the items were not back at the store I fully owed the money I was charged.

I explained that the charges were made without my authorization yet Jamie still said I owed the money to Petstore.com per MasterCard policy. When I told Jamie that Federal regulations protect the consumer in cases when a merchant sends unordered items and then attempts to bill the customer for it, I was told "we don't care about
the law here". Needless to say it was a shocking response that I would not have expected from any Citibank employee, not to mention a Customer Service Supervisor. Because of such an appalling response by
Jamie who told me that this was Citibank's policy (to flagrantly disregard the law!), I immediately closed my account rather than be
subject to further unauthorized and illegal charges by merchants who retained my credit card number.

I called twice more and spoke to two other Citibank representatives and was told the same thing. Thus, this appears to be Citibank, and possibly MC, policy. However, I believe it is completely illegal.

Can anyone confirm that the Federal regulation exists that a merchant cannot ship something and charge for it if the customer did not authorize the charge and that if they do it, you can keep the item? Can anyone tell me the actual code (paragraph) information?

Thanks for any help this is very frustrating!

Tracy Lunt

[ang379]

I would ship it back C.O.D. so that you don't have to wait a month for a rma tag and can possibly get your credit for the merchandise sooner - or if you had gotten a decent deal, go ahead a keep the food and save yourself the hassle.

As for legal stipulations - I don't have definitive information, so I don't know what to tell you about the particulars.

Hope you get this resolved to your satisfaction soon Good Luck!

[michlynn]

As a legal researcher (I research legislation, caselaw, etc., and draft memos and briefs for solo practice attorneys), I'd strongly suggest that you contact your state attorney general's office and/or the Federal Trade Commission for assistance. They all have consumer divisions and should know the applicable laws--both state and federal. Often, a state's laws are stricter than the corresponding federal laws. Also, states may have laws in addition to the federal laws.

Here's a link to a page that will help you find your state attorney general: [Only registered and activated users can see links. Either login above or Register Now]

Here's the link to the Federal Trade Commission's page re consumer issues: [Only registered and activated users can see links. Either login above or Register Now]

Also, I've found this website to be very helpful regarding internet consumer issues: [Only registered and activated users can see links. Either login above or Register Now]
Good luck.
Michelle

[jsalba]

W-O-W !!!!

I can't begin to believe how you were treated by your credit card company. I am absolutely furious over it and I wasn't even the victim.

I think I would also contact the Federal Trade Commission, the Better Business Bureau and any other agency that I could to make this known.

Additionally, I would follow up by finding out who the big shot at your credit card company is, send a certified letter - return receipt requested - to this person outlining how shoddy their CS personnel were and that you intended to pursue this matter further.

God I can't believe how mad I am right now over this!

Keep us posted!

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email: [Only registered and activated users can see links. Either login above or Register Now]
subj line: Deal of Day

Update:

I've done a lot of calling and a lot of learning today! I thought I would share what I've found so that we can all become more informed about our rights, especially with all of these online merchants who retain our credit card numbers. Can you imagine what would happen if they could ship us merchandise and bill us for items we didn't even order?

I spoke with (and filed complaints with) the BBB in Citibank's state, the Federal Trade Commission and the Division of Consumer Protection in my home state (Virginia). They all agreed. Citibank has broken two laws.

1) According to Federal regulations, a customer is allowed to dispute ANY charge they even think may *possibly* be in error. In fact, this right is printed on the back of every credit card statement you receive under the title "Bill Rights Summary" (at least that is what its called on my statement). Citibank cannot deny me the right to dispute the charge. However, note that the dispute must be made in writing within 60 days of the date of receipt of the credit card statement to compel Citibank to put the item in dispute, a phone call is not sufficient. Further "You do not have to pay any amount in question" while it is being investigated. I guess Citibank employees (and Supervisors) have never read their most basic form of communication - the credit card bill! Those three CSR's all told me that I could NOT put the amount in dispute as long as I had the merchandise which is completely false unless they wish to tangle with the government.

The "Rights Summary" on your credit card statement and your right to dispute any charge is mandated by law under the Fair Credit Billing Act (FCBA) (so now I have a name I can refer to for the origin of the law). I found this on FTC's web site at [Only registered and activated users can see links. Either login above or Register Now] (click on "Money" then "Credit Publications" and there is a whole host of helpful information from Credit Reports and loans to Credit Cards).

2) According to Virginia state law (and I believe there are Federal couterparts as well as versions in every state), "if you receive merchandise that has not been ordered or requested by you, you may consider the merchandise an unconditional gift". I now have a hard copy that the VA Consumer Protection Division faxed me of the actual statute (Title 11, Chapter 1, Section 2.2).

Armed with this information, I called Citibank again ready to demand my rights! But Petstore.com was a good guy and as of today I have a credit for the full amount of the second charge.

There is still a major Customer Service and Policy problem at Citibank but its harder to argue directly with CSR's when you don't have a specific case in hand. I will continue to bring these problems to the attention of the appropriate authorities and the people in charge at Citibank to see what can be done about the misinformation being spread by their CSRs and the illegal practices they are supporting. These people have either been ill-trained or purposefully mis-trained. In either case that must be fixed.

Tracy

[jsalba]

Tracy ~

Thank you for the updated information. It just may prove to help out some other Deal of Day members who are experiencing similar troubles.

Take care !

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email: jsalba@yahoo.com
subj line: Deal of Day

[The Bunny]

Thank you to Tracy and Michelle for all of this helpful information! Hope I never need to use it.

[crazycorky]

ttl6u,

Remind me never to mess with you or get on your wrong side!!!
Hehehehe
Nice job, i try telling people all the time that they have more rights then they think and you should always fight for them!

Corky

[missmeow]

Tracy:

Wow - what a story. I used to work for Citibank (coincidentally, in the fraud investigations division!) and can testify that the company has serious problems with customer service, much of it due to the fact that they try to cut costs in every possible way, leaving an underpaid, severely whittled down staff of CSRs with very low morale and little training. Many talented people who had been with the company for many years quit or were fired when the company went through the merger that made it "Citigroup." Having seen the worst of everything "behind the scenes" I would NEVER in a million years open any account there, of any sort. I beleive their #1 priority is making money by charging outrageous fees and "cutting costs" by making you talk to a machine instead of a CSR, it is NOT providing quality customer service and helping you. It is disappointing that they would go that far in your case. Good luck with resolving this and next time, open an account with your neighborhood credit union!