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Disputed Credit Card. I am a business owner, I had a customer dispute a credit card payment.Need to know if he is legally right.

Fort Smith, AR |

I had a customer come in for some work to their truck, the truck obviously had many things wrong with it when it was brought in. I fixed what we agreed to be fixed, and actually knocked $50 off the agreed upon price. Customer is happy with the work that was done when the truck is picked up, and paid with a credit card. Customer calls 10 min later saying that I broke some of the things that were obviously wrong with the truck when before he brought it in. He then disputes his credit card claim.

My question is this - Regardless of the type of payment, the customer should file a civil suit instead of disputing the card payment. I should still get paid for the satisfactory work we agreed upon, and the other is a separate matter. Is this the correct way of thinking?


Attorney Answers 3

  1. I agree with your line of thinking. Otherwise the door is wide open to deprive you of the security and lien you have for the work provided on his vehicle. In fact the customer theoretically has parts in his vehicle that you bought and paid for.

    Has the charge-back already occurred or are they asking your permission to do the charge-back?

    Every legal matter is fact specific, and there are often nuances in every case. This is intended for comment only, and does not create an attorney client relationship.

  2. Whether the customer was "right" is a loaded question.

    He may be able to do this under the Truth in Lending Act (I say 'may' because there are some elements that need to be met that weren't addressed in your post) allows a cardholder to assert claims or defenses against the card issuer when the cardholder is unable to resolve a dispute with the person/business who accepted payment by credit card for the services/goods provided.

    However, that doesn't mean that the dispute is resolved, but you will likely have to take action in order to get the payment you're entitled to.

    The prosecutor may have decided that he could not prove the requisite intent to get a conviction for Theft, and it is the prosecutor's discretion as to whether or not to bring criminal charges.

    You can, however, bring a civil lawsuit against the customer to recover the amount owed, as well as your costs and attorney's fees. Depending on the amount of claim, you may be able to bring your suit in small claims.

    This response is for information purposes only, it does not create any attorney-client relationship. Responses to questions posted on this Forum are of a general nature only. Because it is not possible to have all of the facts of your issue addressed in this forum, you should consult with an attorney to review the unique circumstances specific to your situation.

  3. I think you are correct in your assessment. Simply object to the challenge forwarded to you by the customer's credit card company and demand payment. The company will end up paying you if you put forward decent letterand exhibits of what transpired and costs incurred. The ex employee can then fight with the CC company.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained. Please click "helpful" or "best answer" if my answer added any value or add a "comment" if you have more info for me to help you get a better answer.