Plastic – the car dealer’s inflexible friend

We get lots of enquiries about “Chargebacks”. The unlegislated arrangement whereby card providers (seemingly always) decide in a consumer’s favour and return monies to the cardholder’s account on the presumption that the consumer is always right and cars are always defective.

As one letter we had in from a very well known company (who shall remain anonymous) reminded us – as we remind you now – “credit cards and debit cards do not offer a guaranteed form of payment for goods or services. Each transaction undertaken is subject to return by the card issuer even if authorisation has been obtained and all standard sales procedures have been followed. Disputes regarding the quality of goods and services are included...”

The problem I have is that it is the card issuer becomes the sole judge in such disputes regardless of merit and I feel that often they bend far too easily towards whoever screams at them the loudest which, inevitably, will be the consumer. 

Would you ever think that in the school play, aged 7, I was Snow-White’s “Grumpy” Dwarf?!


Authors: Jason Williams

Published: 11 May 2016


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(cAse SeNSItivE!)

Jason Williams - Lawgistics Ltd (31/05/2016)
Sorry to hear of your plight with regard chargebacks. If you wish for our assistance with that dispute then we are happy to help or, alternatively, you may wish the Financial Ombudsman to rule on the matter. But we are here for you if you need us
Douglas123 (31/05/2016)
We are currently disputing a charge back. A couple of months after we sold a car, there was a genuine fault with it, which we immediately agreed to rectify. Initially the customer was happy with this and confirmed by email this was so. We carried out the repair and made the car all good and fit for purpose and the customer then decided that he wanted a refund rather than the car back. We spoke to trading standards who gave the opinion that this was an unreasonable demand and that given what we had told them, we had acted perfectly properly. The customer then decided to make a chargeback request. During the ongoing dispute, some three months now, the customer has made numerous statements that are entirely untrue. He has even accused us of of allowing him to drive away from our premises without the vehicle being taxed, (his credit card payment included an amount for road tax and we have discovered he has subsequently SORNED the vehicle and claimed a road tax refund.) It's a bit of a nightmare, especially since we have been in business for almost four decades and ALWAYS have customer satisfaction first and foremost in mind. Perhaps it's time for the charge back system to be independantly managed.

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