Can a merchant threaten send a collections agency after I won a credit card dispute?

[jthomps7]

My credit card company recently informed me that I "won" a credit card dispute against a merchant because the merchant never replied to the card company's request for more information. The card company withheld payment from the merchant.

Now the merchant is sending me threatening letters saying: ' your card company never paid us because they say it was disputed. Now YOU pay up, or we'll send you to collections.' Do they have a right to do this? My understanding is that the merchant's only has recourse through the credit card company and not directly through the consumer.



Here are some details which may be relevant to the situation:

The amount of the charge was $375 to an APC (appraisal management company) for a home appraisal on a refinance. The report was riddled with errors, which I considered to be material deviations from industry standard practices. I ended up getting another appraisal (with another lender) only two weeks later, this time done correctly, which yielded a number 26% higher.

Prior to disputing the charges, I undertook these steps:
1. Appealing the appraisal with the appraisal management company, submitting over two pages of supporting written documentation.
2. Subsequent to denying the appeal, I submitted a formal written request for a refund. After receiving no response, I called the APC to request again, but was denied.

 

[army judge]

My credit card company recently informed me that I "won" a credit card dispute against a merchant because the merchant never replied to the card company's request for more information. The card company withheld payment from the merchant.

Now the merchant is sending me threatening letters saying: ' your card company never paid us because they say it was disputed. Now YOU pay up, or we'll send you to collections.' Do they have a right to do this? My understanding is that the merchant's only has recourse through the credit card company and not directly through the consumer.



Here are some details which may be relevant to the situation:

The amount of the charge was $375 to an APC (appraisal management company) for a home appraisal on a refinance. The report was riddled with errors, which I considered to be material deviations from industry standard practices. I ended up getting another appraisal (with another lender) only two weeks later, this time done correctly, which yielded a number 26% higher.

Prior to disputing the charges, I undertook these steps:
1. Appealing the appraisal with the appraisal management company, submitting over two pages of supporting written documentation.
2. Subsequent to denying the appeal, I submitted a formal written request for a refund. After receiving no response, I called the APC to request again, but was denied.

It isn't a threat to say that you plan to sue someone or turn a debt over to collections, if you believe they owe you money.

That said, yes, they COULD sue you, or turn your account over to collections.

The better thing for you to have done was to sue them for doing shoddy work.

Of course, you'd have to proven to a judge the work was shoddy, or they failed to do what the contract required them to do.

So, your credit score could get dinged.

Yes, even if you write a disputed version of events for your credit file.

Credit bureaus are set up to assist BIG MONEY, not "we the sheeple".

If they sue you, it'll likely be in small claims court.

That means that if you don't pay them, they'll have to have you properly served, before they can get you into a court.

You might want to Google "small claims process in YOUR STATE AND COUNTY"

Otherwise, you aren't required to respond to letters from private entities.

 

[mightymoose]

The credit card company decision to cancel the charge has no legal significance.
You hired the company to do an appraisal. You need to pay for that appraisal.
If you end up in court you may have a hard time defending your position.

 

[Betty3]

Agree; just because the credit card co. withheld payment to the merchant, doesn't mean you don't still owe the money for the service rendered. If they sue you, your defense would be shoddy work - that may or may not go over with the judge.