Consumer complaint received 2018-05-11
Company: CITIBANK, N.A.
State: HI
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
Backstory : I made a purchase from a merchant, The XXXX XXXX, using my CitiBank Double Cash credit card. 

There was an issue with the purchase - I purchased the items ( two high quality totes ) brand new, and they arrived completely shattered. 

The cost per item was {$20.00} + {$30.00} shipping, for a total of {$71.00}. 

In contacting the merchant, they refused the return on the grounds that I had to ship it to them myself at my own cost. 

Due to location and volume of shipment box, a shipping cost quoted for me as an individual consumer was {$100.00}! For that price it would be cheaper to buy three brand new totes. 


Story for complaint regarding CitiBank : I contacted CitiCard on XX/XX/XXXX via their online dispute for individual transaction. The very first selection in the Dispute process was indicating that the dispute was for " Damaged items. '' I only disputed a partial amount - {$50.00} - that would be the price of one tote plus shipping if I was to repurchase them again, as I believed I might be able to salvage the other tote. I indicated that the merchandise was received on XX/XX/XXXX, and that I had attempted to contact the merchant by phone to resolve the dispute, to which they answered as I had previously indicated above. I also indicated that I had attempted to return the merchandise but was unsuccessful, also as indicated above. I provided full details of the items purchased, how they were received and the full extent of damages. 

This is a process I'm used to, and especially with CitiBank as prior to this they always offered the best support when it came to disputes, because there are unfortunately too many bad merchants on the market today. For even further emphasis, I had gone through this same process with the same merchant in the past, and Citi resolved it immediately with no issues. 

That was not the case this time. 

The timeline of what occurred ( in regards to this complaint ) : XX/XX/XXXX - opened dispute and received e-mail stating dispute was received XX/XX/XXXX - received a short e-mail stating they had contacted the merchant and the merchant had until XX/XX/XXXX to respond XX/XX/XXXX - I received a voicemail from The XXXX XXXX, stating that they had been contacted and originally going to schedule a XXXX pickup of the merchandise, but that they had been informed that I was already refunded through the dispute and as such instructed me to dispose/donate the items. 
XX/XX/XXXX - I received another short e-mail from CitiBank stating that the merchant had still not responded to them.

XX/XX/XXXX - I received a short e-mail from CitiBank stating that they'd heard back from the merchant, were reviewing the information they provided, and would get back to me within 10 business days. 
XX/XX/XXXX - CitiBank posted a letter containing a two-page copy of the merchant 's response. Base on that information, they stated that they closed their investigation and reversed the credit. They went on to state that if I continue to dispute the charge, that I must provide a letter with an explanation that I attempted to return the merchandise and the reason for merchant 's refusal, along with an explanation of how the merchandise was defective. They asked for the letter to be signed and returned by XX/XX/XXXX.  I promptly photocopied the letter and wrote back a response. I detailed that I was continuing to dispute the charge, indicating the attempted return as originally described when submitting the dispute, and indicating The XXXX XXXX 's recorded instructions to dispose of the merchandise because I had already received a refund from the dispute so they were not going to send XXXX   to pick the items up. I stated that I would not be signing the letter, as I was in disagreement with their decision and did not acknowledge closure of the dispute. I indicated that Citi has acted with negligence - that the merchant 's response included was the same exact basic purchase information I provided in the dispute to Citi directly, but that there was a lack of any documentation regarding my dispute for the damaged merchandise, their original refusal of the return, and of their acceptance of the dispute and their instructions to dispose of their items. I also stated that as a Citi consumer, I was not only covered through dispute investigation, but two of their benefits : ( 1 ) Damage & Theft Protection Purchase and ( 2 ) 90 Day Return Protection. 
XX/XX/XXXX - I received an e-mail thanking me for providing information requested and that they'd review it and get back to me. 
XX/XX/XXXX - CitiBank posted a letter that day stating that they were unable to resolve the dispute in my favor because they did not receive valid documentation proving that I returned merchandise or attempt was made to return merchandise. 

Summary : I issued a routine dispute with CitiBank due to damaged protects from a merchant who originally refused the return. 

CitiBank contacted The XXXX XXXX, and as a consumer I don't know what was said but according to my recorded message from The XXXX XXXX they had been informed of the dispute by Citi and resolved to accept it, and instructed me to throw away the items. 

Without considering a single shred of the dispute details or evidence regarding the damaged product that was the entire reason for the dispute, Citi reversed their dispute credit. 

At this time, this is fraud. CitiBank is double dipping from both the merchant and the consumer. They informed the merchant of the dispute and the merchant accepted it, instructing the customer to throw the item away because refund was already given from the dispute. But then CitiBank goes back on their side and reverses the dispute afterwards. 

This means that CitiBank has now effectively charged me {$70.00} for items that were disposed per merchant 's order per CitiBank 's contact regarding this dispute. 

I am most upset about the way I have been treated as CitiBank 's customer through this, as I stated have issued a few disputes through Citi before and all went through smoothly. 

It's more alarming that CitiBank has not even adhered to its program benefits of ( 1 ) Damage & Theft Protection Purchase ( 2 ) 90 Day Return Protection As such, I count the issue of the dispute as one count of fraud and the above two program benefits that Citi has thumbed its nose at as two counts of breach of contract.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief