October 17, 2009
what should i do? merchant threatening to take me to collection agency?
user9834 asked:
i went on a program which was 6500 total called natural hair regrowth institute and i would make monthly payements. i was not getting the proper treatment due to poor service. this includes the owner changing dates on me when i would beable to come in interfering with my work schedule. also a staff member refused to do massages at given times. . i wanted to end the program and the owner agreed to end it with a 1000 dollar return to my credit card. This would leave me paying 5000 total not even going half way into the program. i swiped my card got the 1000 receit but this payment never registered to my account. I tryed countless times contacting him, he refused to answer or return my calls or emails. it was at least 1 month and i never got any return to my card so i disputed these charges. now i got the 1000 back and he says if i dont reverse the charges he will send to collection agency and make me pay everything i owe including 33% of lawyer fees which he said would equate to $6000
i went on a program which was 6500 total called natural hair regrowth institute and i would make monthly payements. i was not getting the proper treatment due to poor service. this includes the owner changing dates on me when i would beable to come in interfering with my work schedule. also a staff member refused to do massages at given times. . i wanted to end the program and the owner agreed to end it with a 1000 dollar return to my credit card. This would leave me paying 5000 total not even going half way into the program. i swiped my card got the 1000 receit but this payment never registered to my account. I tryed countless times contacting him, he refused to answer or return my calls or emails. it was at least 1 month and i never got any return to my card so i disputed these charges. now i got the 1000 back and he says if i dont reverse the charges he will send to collection agency and make me pay everything i owe including 33% of lawyer fees which he said would equate to $6000
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Comments on what should i do? merchant threatening to take me to collection agency?
You were taken. You could sue this company and expose their fraudulent ways. You could report them to your local “fair trading and business bureau,” for this issue.
Suing would be throwing away your money. There is no point in spending $10,000 on lawyer fees, court fees etc just to get back $1000 from a lousy business owner, of which you are not even sure you’ll get back because you might lose the case.
If I were you, I’d be looking for the fair-trading bureau and file a formal complaint about that organizations unscrupulous business practices. You could also claim that they are making false advertisements, of course have proof. This will definately get the authorities attention, though you must have proof so they get fined and reprimanded etc.
You did the right thing reversing the charges – most people don’t realize you only have 60 days to do so. Now that’s on the record as a dispute. The credit card company, unfortunately, will probably side with the merchant since you did sign a contract.
You’re next step is to go over the contract very carefully and see if there is anything to give you an out since the merchant did not provide the service in a reasonable way according to what you are saying.
I would suggest you call around and find an attorney who specializes in contracts. It would probably be very much in your interest to pay for the contract to be reviewed and get a professional opinion on whether you can beat it.
Don’t waste any time, though, not sure what the law is in your state, but the merchant may very well be able to come after you for his legal fees if you let it get that far. Try to stall him as much as possible while you are building your case.
Disclaimer: I’m not an attorney. I really hope this helps. It sounds like this merchant does not care one bit about customer service.