Credit Counselling

What is a Contract Dispute?

A credit card contract can always be disputed by customers. When this happens, the credit card holder may hold back payment on the disputed amount and pertinent charges while the case is being investigated. However, it is the cardholder’s responsibility to pay the other bills and finance charges. The credit card firm may not enforce any legal move to collect the disputed amount. Your account cannot be terminated but the disputed amount may be applied against your credit limit.

This article aims to assist the credit card holder with an existing contract dispute. It will provide readers with information about disputing a credit card bill and tips on how to resolve this issue together with the credit card company.

How to Dispute a Credit Card Bill

If a commodity that you bought or ordered was delivered with damages or the quality is totally inferior, the first step is to file a dispute to resolve the issue. However, you have to undertake several procedures steps so the result will be satisfactory. Remember that there are laws that apply to disputes regarding credit card purchases. In Canada, discontented customers can go to the Better Business Bureau (BBB) which deals with dispute resolution. The bureau deals with complaints involving business-to-business and consumer-to-business transactions. It usually recommends that consumers first try to resolve their complaint with the company. However, it will not refuse complaints from consumers who ignore this process. The Better Business Bureau may offer arbitration or mediation to facilitate the resolution process. As part of the procedure, the complaint is forwarded to the company within 2 working days. The business is asked to respond within 2 weeks and upon failure to do so, a second request is made. The consumer is informed about the response when the bureau receives it. The complaints are resolved normally in a month’s.

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When should Credit Card Holders File Disputes?

The return policy applies in most cases for online and regular purchases. Money-back guarantees are appropriate when an item is of poor quality or gets damaged. The process of the dispute resolution commences when the purchaser calls the merchant to complaint. The issue may be resolved at this stage but it must be within a specified time frame which is typically 30 days or more. If your efforts to settle a dispute with some merchant fail, the credit card company takes responsibility for managing the dispute. It is mandated by law to intercede. This is done to maintain a good company-customer relationship. It is necessary to provide documentation that will support your claims. The prospects of resolving the dispute at this level are relatively good because credit card firms want to maintain their credibility. The business can issue a chargeback that reverses the purchase. In this way, the debt is passed from the credit card user back to the merchant.

What must the Affected Customer Prepare?

It is imperative for the credit card holder to submit supporting documents to justify the claims. Otherwise, the dispute will not be resolved in his or her favour. Before the credit card company mediates, the customer has to fulfil certain roles. If the purchase was made online, the card holder should get in touch the merchant directly and demand reimbursement. In case the merchant fails to act on his request, the crediting institution, the merchant’s bank, and the credit card institutions arbitrate on behalf of the client. The key to a successful dispute resolution is swift action. Do not wait too long before informing the merchant or Credit Card Company. Once the product is found to be defective or of substandard quality, this begins the process of dispute.

Customer Expectations

Definitely, the customer expects a favourable resolution. It is therefore expected of him to provide all the requirement expected and move quickly to make sure that everything goes well. Customers should provide all the cooperation to put an end to this problem.

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