From: sch@unx.sas.com (Steve Holzworth)
Subject: Re: Problems making a purchase from a small business - request advice
Date: Thu, 13 Aug 1992 16:24:41 GMT
Organization: SAS Institute Inc.
Keywords: restocking fee, threats, credit bureau

heller@heller.b11.ingr.com (Anne A. Heller) writes:


>I am facing a potential dispute with a local business which sells small
>computer systems.  I am appealing to anyone who has had a similar experience
>for advice.  I'll try to keep the description as brief as possible,
>but <warning> I'm upset and tend to rattle on in such circumstances :-(.

assorted sleazy jerking around deleted.

>pick up the system.  The system was loaded in our truck before Jeff, while
>preparing to pay, looked over the invoice, and saw an additional $50.00 charge
>with no explanation.  The owner is not present and his son cannot explain the 

 stuff deleted

>business and the unexplained $50.00 charge was the final straw.  The owner
>explained that the charge was for using MasterCard to pay for the system.

MC and Visa SPECIFICALLY forbid merchants from doing this. If you had
purchased the system, you could've called MC and gotten this part of the
charge reversed.

>him.  The owner told Jeff that if we did not purchase the computer, he would 
>bill us for a 15% restocking fee (a "restocking fee" had never been mentioned
>or indicated in any way until this point!) and would turn the bill over to a 
>collection agency if unpaid which would eventually report us to a credit bureau.


You never signed an order. At this point, it's all just a retail transaction.
He hasn't delivered (sort of) the system as described, you haven't given him
any money. He is in no position to charge a restocking fee. If it isn't
specifically stated, I don't think he CAN charge a restocking fee. If he
threatens to turn it over to a collection agency, threaten to report him to
the state Attorney General (and do so, anyway), and the BBB. If necessary,
threaten to sue him for defamation of character (filing a false credit report)
and assorted financial injury (damaging your credit rating). If your local
TV station has a consumer-affairs reporter, tell them about it. Bad publicity
can kill a local store. You might also consider having a lawyer write him
a nasty letter on the firm's letterhead. It shouldn't cost more than about
$50.00. If you typically do other business with your lawyer, he/she might
send the letter for free.

>I imagine the restocking fee/threat to report us to a credit bureau was meant 
>to intimidate us into buying the computer.  Although his threat upsets me, we 
>are in no way going to be intimidated in such a manner.  I wouldn't dream of
>entering a business transaction with his shop at this point!  My question is,
>is it legal for him to do this, considering no previous indication of a
>"restocking fee" had been given?  What would be our recourse?  I have read the 
>FAQ and know that we could dispute such information in our credit report, but 
>it still makes me angry that this guy could potentially cause problems for us.

>-Anne
>heller@heller.b11.ingr.com  -or-  ..!uunet!ingr!b11!heller!heller

Steve Holzworth
sch@unx.sas.com

Newsgroups: misc.consumers