Billed for Merchandise You Never Received

Have you ordered something by mail or over the phone and never received the goods and yet you did receive the bill?   The Fair Credit Billing Act (FCBA) and the Mail or Telephone Order Merchandise Rule offer protections and procedures for consumers so they don't have to pay for merchandise they ordered but never received.

Under The Fair Credit Billing Act, to dispute a billing error o­n your credit card, you need to do the following:

•  (a) Write to the credit card issuer at the address for BILLING INQUIRIES and not the address for sending your payments (the address for billing inquiries is often found o­n the back of your most recent monthly statement;

•  (b) Send your letter so that it reaches the credit card issuer within 60 days after the first bill containing the mistake was mailed to you;

•  (c) Send your letter by certified mail, return receipt requested, so you will have proof of what the credit card issuer received. Include copies (not the originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter;

•  (d) Make sure you send the letter to the right company and address. In the case of Visa and MasterCard, you should send it to the bank that issued the card.

The credit card issuer must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has already been resolved. The credit card issuer must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

While your dispute is o­ngoing, you may withhold payment o­n the amount in dispute (and related charges), during the investigation, but you must pay any part of the bill not in question, including any finance charges o­n the undisputed amount.   The credit card issuer may not take any legal or other action to collect the disputed amount and the related charges (including finance charges) during the investigation. While your account cannot be closed or restricted, the disputed amount may be applied against your credit limit.

  Some credit card issuers make an exception to the general industry rule against merchants charging before shipping if the merchant tells you about its practice at the time of sale. If you're certain the merchant said nothing or wasn't clear about its charge practice, the credit card issuer is more likely to allow the dispute.

  In normal delivery situations, some credit card issuers will use the expected date of delivery rather than the charge date as the start time for you to dispute charges. If you dispute the charge within a reasonable time after the expected delivery date passes, chances are good that the credit card issuer will honor the dispute. When you order or when a merchant notifies you of delayed shipment, it's important to keep a record of the promised shipment or delivery date. Include a copy of any documentation of the shipment or delivery date when disputing the charge with your credit card issuer.

In the Event You Used a Debit Card. The consumer protections for a debit card fall under the Electronic Fund Transfer Act and may differ from protections for a credit card under the FCBA. So you may not be able to dispute a debit and get a refund for non-delivery or late delivery. Still, some debit card issuers voluntarily offer protections and solutions to problems like the failure to receive merchandise bought with a debit card. Contact your debit card issuer for more information about particular policies and protections.

What if you financed your purchase through the merchant? If you financed your purchase through the merchant, you also may have protections under state and federal law. Check your credit contract for the following language:

“ Notice: Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained with the proceeds hereof.”

  It means that you may be able to claim that the seller failed to deliver the goods as stated in your credit contract.

The Mail or Telephone Order Merchandise Rule
This rule covers merchandise you order by mail, telephone, computer and fax. It requires merchants to have a reasonable basis for claiming they can ship an order within a certain time.

WWhen Shipping Actually Begins

•  By law, a merchant should ship your order within the time stated in its ads or over the phone. If the merchant doesn't promise a time, you can expect it to ship your order within 30 days.

•  The Stopwatch Begins: When the merchant receives a "properly completed order." That includes your name, address and payment (check, money order or authorization to charge an existing credit account - whether the account is debited at that time or not).

•  If the merchant doesn't promise a shipping time and you are applying for credit to pay for your purchase, the merchant has an additional 20 days (50 days total) to establish the account and ship the merchandise.

If There is a Delay

If the merchant is unable to ship within the time promised, you must be notified you by mail, telephone, or email, be given a new shipping date and the chance to cancel for a full refund or to accept the new date. The merchant also must give you some way to exercise the cancellation option for free, for example, by supplying a prepaid reply card or staffing a toll-free telephone number.

•  If you ignore the option notice, and the delay is 30 days or less, it's assumed that you accept the delay and are willing to wait for the merchandise.

•  If you do not respond - and the delay is more than 30 days - the order must be canceled by the 30th day of the delay period and a full refund issued promptly.

If the merchant can't meet the revised shipping date, it must notify you again by mail, email or telephone and give you a new shipping date or cancel your order and give you a refund.

•  The order will be canceled and a refund issued promptly unless you indicate by the revised shipping date that you are willing to wait.

•  If you do not respond at all to the second notice, it's assumed that you are not willing to wait, and a full refund must be issued promptly.

Refunds
If you authorized a charge to your credit card account, the merchant must credit the account within o­ne billing cycle - not give credit toward another purchase. If you pay by cash, check or money order, the merchant must mail you a refund within seven working days.

General Tips for Ordering by Phone, Mail or o­nline

•  Do you know this company or its general reputation before you order? If you've never heard of the seller, find out its location and reputation with the local Better Business Bureau or the state Attorney General's office.

•  Inquire into the company's refund and return policies , the product's availability and the total cost of your order before you place your order.

•  Get a shipment date.

•  Keep records of your order and keep track your purchases. When you order o­nline, keep printouts of the web pages with the details of the transaction, including the merchant's return policies, in case you're not satisfied.

If you have other problems with your purchase, try to resolve your dispute with the company. If that doesn't work, contact your state and local consumer protection offices.