Consumer complaint received 2023-01-07
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: U.S. BANCORP (NJ)

To : XXXX XXXX, XXXX and General Manager, Elan Credit Card CC : FDIC, CFPB XXXX Credit Card Account Ending in XXXX Issuer and Servicer : Elan Financial, subsidiary of XXXX Bank XXXX : XXXX and XXXX I have been attempting to resolve a billing issue unsuccessfully for XXXX and a half months. I have followed every direction given and been more than cooperative with both the merchant and Elan Financial. I find myself having to remind Elan Financial, servicer and issuer of the XXXX credit card, of their regulatory obligations under the Fair Credit Billing Act and being met with resistance because they are relying on XXXX agreements, not federal regulations. 

Allow me to provide a bit of context into what happened with the transaction and the subsequent reactions of the merchant and credit card company. On XX/XX/2022, I received a half-truckload of returned XXXX merchandise purchased through XXXX XXXX via an auction on their website. XXXX XXXX charged me separately for the shipping of the half-truckload therefore resulting in two disputed transactions. Once the pallets were unloaded into my garage, it became evident quickly that there was an issue the entire house began to smell of gasoline. After looking through the pallets, I realized that there was gasoline splattered and sprayed on all the merchandise. Digging through a bit more, I found open containers of gasoline. I knew that I had to get this out of my home as quickly as I could because I have a partner with health concerns as well as five animals with medical needs ; not to mention the flammability of open gasoline containers in a confined space. 

I attempted to contact multiple shipping companies to return the merchandise but knowing that the shipment would be covered in gasoline, I couldnt get anyone to accept it meaning that I was unable to return it to the merchant. Forced to decide next steps for the safety and health of my household members, I was able to find someone with an open bed truck to take the merchandise to the local junk yard. 

Having gotten rid of the entire half-truckload, I let the merchant know what had transpired. They refused to do anything about the fact they had just sent me dangerous, flammable materials without my knowledge or consent. They sent me multiple fine print disclosures and rules about when refunds would be given and returns granted, etc. but none of them covered the scenario in which they knowingly violated XXXX regulations by shipping open gas containers. They were unwilling to refund my money or do anything to rectify the situation. 

The next step was to contact the credit card company to let them know I wanted to dispute the transaction. After a brief conversation, I was given a provisional credit and sent some paperwork to fill out regarding the situation. I wrote out answers to what was asked and waited for Elan Financial ( on behalf of XXXX ), to make a decision. On XX/XX/2022, I was sent a letter that stated they were unable to move forward because they didnt have enough information. Elan Financial removed the provisional credit in the wake of this decision. The situation was a bit complicated, so I understood that response and called to give them more information on XX/XX/2022. The representative that I spoke with stated that she would take notes of what happened and send it back to the case manager for further review and a provisional credit. After this phone call, no additional credit was put on my card, and I was forced to make a payment on a balance that I was actively disputing. 

Having not received another credit and having made a payment, I called back on XX/XX/2022 to make sure that everything was okay on my account and that the steps were moving forward as required by the XXXX seeing as I had fulfilled my duty of the decline by providing the additional information requested. The representative that I spoke with told me that they were not going to reopen the dispute and that their decision to decline was valid because, XXXX rules state that if the merchandise was not returned to the merchant, a dispute can not be processed. After a forty-five-minute argument about the difference between allowing a payment processor the ability to chargeback a transaction versus acknowledging a billing dispute and following XXXX rules versus federal regulations, we ended the call with the understanding a manager would be reviewing the calls and case and calling me back. 

A manager did indeed return the phone call on XX/XX/2022, but once again gave the same answer as the previous representative that XXXX did not allow them to accept disputes when the merchandise had not been returned to the merchant. I once again attempted to explain that XXXX can not override federal regulations stating that an investigation must be done. XXXX states that a payment processor can not charge a merchant back for a transaction if the merchandise was not returned, but a chargeback and a billing dispute are not synonymous. The financial institution still has a regulatory requirement to investigate the issue and notify the customer of the outcome. In addition to the brush off phone calls, I never received another decline letter meaning the case was never actually reopened and reviewed. If it was reopened and reviewed, Elan Financial would have been required to provide me with an additional decline reason and another provisional credit. 

At this point, I have been forced to make payments on an invalid balance because Elan Financial is unwilling to even look at a dispute if they dont have chargeback rights under XXXX XXXX My rights and protections under the Fair Credit Billing Act have been violated and Elan Financial needs to be held accountable. I would appreciate a thorough review of my individual dispute cases in addition to a review of Elan Financials billing dispute policies and practices. 

With sincere concern, XXXX XXXX XXXX ( XXXX ) XXXX Below are the applicable regulatory rules that have been referenced to present this case ( 15 USC CHAPTER 41, SUBCHAPTER I, Part D : Credit Billing ) : 1666. Correction of billing errors ( a ) Written notice by obligor to creditor ; time for and contents of notice ; procedure upon receipt of notice by creditor If a creditor, within sixty days after having transmitted to an obligor a statement of the obligor 's account in connection with an extension of consumer credit, receives at the address disclosed under section 1637 ( b ) ( 10 ) of this title a written notice ( other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates with the disclosure required under section 1637 ( a ) ( 7 ) of this title ) from the obligor in which the obligor ( 1 ) sets forth or otherwise enables the creditor to identify the name and account number ( if any ) of the obligor, ( 2 ) indicates the obligor 's belief that the statement contains a billing error and the amount of such billing error, and ( 3 ) sets forth the reasons for the obligor 's belief ( to the extent applicable ) that the statement contains a billing error, the creditor shall, unless the obligor has, after giving such written notice and before the expiration of the time limits herein specified, agreed that the statement was correct ( A ) not later than thirty days after the receipt of the notice, send a written acknowledgment thereof to the obligor, unless the action required in subparagraph ( B ) is taken within such thirty-day period, and ( B ) not later than two complete billing cycles of the creditor ( in no event later than ninety days ) after the receipt of the notice and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under paragraph ( 2 ) either ( i ) make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditor 's explanation of any change in the amount indicated by the obligor under paragraph ( 2 ) and, if any such change is made and the obligor so requests, copies of documentary evidence of the obligor 's indebtedness ; or ( ii ) send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligor 's indebtedness. In the case of a billing error where the obligor alleges that the creditor 's billing statement reflects goods not delivered to the obligor or his designee in accordance with the agreement made at the time of the transaction, a creditor may not construe such amount to be correctly shown unless he determines that such goods were actually delivered, mailed, or otherwise sent to the obligor and provides the obligor with a statement of such determination.

After complying with the provisions of this subsection with respect to an alleged billing error, a creditor has no further responsibility under this section if the obligor continues to make substantially the same allegation with respect to such error.

( b ) Billing error For the purpose of this section, a " billing error '' consists of any of the following : ( 1 ) A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount reflected on such statement.

( 2 ) A reflection on a statement of an extension of credit for which the obligor requests additional clarification including documentary evidence thereof. 
( XXXX ) A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction. 
( 4 ) The creditor 's failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor.

( 5 ) A computation error or similar error of an accounting nature of the creditor on a statement.

( 6 ) Failure to transmit the statement required under section 1637 ( b ) of this title to the last address of the obligor which has been disclosed to the creditor, unless that address was furnished less than twenty days before the end of the billing cycle for which the statement is required.

( 7 ) Any other error described in regulations of the Bureau.

( c ) Action by creditor to collect amount or any part thereof regarded by obligor to be a billing error For the purposes of this section, " action to collect the amount, or any part thereof, indicated by an obligor under paragraph ( 2 ) '' does not include the sending of statements of account, which may include finance charges on amounts in dispute, to the obligor following written notice from the obligor as specified under subsection ( a ), if ( 1 ) the obligor 's account is not restricted or closed because of the failure of the obligor to pay the amount indicated under paragraph ( 2 ) of subsection ( a ), and ( 2 ) the creditor indicates the payment of such amount is not required pending the creditor 's compliance with this section.

Nothing in this section shall be construed to prohibit any action by a creditor to collect any amount which has not been indicated by the obligor to contain a billing error.

( d ) Restricting or closing by creditor of account regarded by obligor to contain a billing error Pursuant to regulations of the Bureau, a creditor operating an open end consumer credit plan may not, prior to the sending of the written explanation or clarification required under paragraph ( B ) ( ii ), restrict or close an account with respect to which the obligor has indicated pursuant to subsection ( a ) that he believes such account to contain a billing error solely because of the obligor 's failure to pay the amount indicated to be in error. Nothing in this subsection shall be deemed to prohibit a creditor from applying against the credit limit on the obligor 's account the amount indicated to be in error.

( e ) Effect of noncompliance with requirements by creditor Any creditor who fails to comply with the requirements of this section or section 1666a of this title forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph ( 2 ) of subsection ( a ) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed {$50.00}.

1666i. Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction ; prerequisites ; limitation on amount of claims or defenses ( a ) Claims and defenses assertible Subject to the limitation contained in subsection ( b ), a card issuer who has issued a credit card to a cardholder pursuant to an open end consumer credit plan shall be subject to all claims ( other than tort claims ) and defenses arising out of any transaction in which the credit card is used as a method of payment or extension of credit if ( 1 ) the obligor has made a good faith attempt to obtain satisfactory resolution of a disagreement or problem relative to the transaction from the person honoring the credit card ; ( 2 ) the amount of the initial transaction exceeds {$50.00} ; and ( 3 ) the place where the initial transaction occurred was in the same State as the mailing address previously provided by the cardholder or was within 100 miles from such address, except that the limitations set forth in clauses ( 2 ) and ( 3 ) with respect to an obligor 's right to assert claims and defenses against a card issuer shall not be applicable to any transaction in which the person honoring the credit card ( A ) is the same person as the card issuer, ( B ) is controlled by the card issuer, ( C ) is under direct or indirect common control with the card issuer, ( D ) is a franchised dealer in the card issuer 's products or services, or ( E ) has obtained the order for such transaction through a mail solicitation made by or participated in by the card issuer in which the cardholder is solicited to enter into such transaction by using the credit card issued by the card issuer.