Unresolved credit card billing dispute!

[aduncan81]

I have a rather unique problem/question and hope that you can help. While traveling on business in China a few months ago I was the target of a scam. Long story short, I presented my credit card for an item purchased at a cafe and was returned a signature slip for about 20 times the amount of the item I ordered and received. I realized they were running a scam and after a heated argument in broken English and Mandarin, I refused to sign to receipt, threw the correct amount of cash down and fled before the scam's "enforcers" could arrive. I emailed my credit card (Citi) hours later to tell them not to process any such charge. A charge was processed and I filed a formal billing dispute and provided numerous signed statements as requested over the next few weeks. I just now received notice that Citi was unable to resolve the dispute because it involves "the quality of the merchandise for a charge originating in a foreign country". I called today and was reaffirmed by a rep of this response.

Is this possible? Has anyone ever experienced a similar situation? I'm waiting for a call back from a supervisor. Hopefully as a 7 year customer who typically charges $25K annually and has never had a late payment, this will ultimately be resolved. As a last resort I will have to close all my Citi accounts and leave the disputed amount left unpaid. I have excellent credit, opened a mortgage last year and would apply for new cards with another bank prior to defaulting on the disputed amount. I have no need for additional credit in the near future so the effect on my credit score should go unfelt. Any other recourse? Any advice would be greatly appreciated.

[JoshuaHeckathorn]

Some credit card companies are better than others about this, but disputing charges made overseas can often be difficult. Citi knows they're not going to get any info. from some small cafe in China, so their policy must be to not allow disputes at all.

I would call and point out the fact that you're not disputing the quality of merchandise or a service. This was an unauthorized charge to your card by a shady establishment. I don't know how much this was for, but I've lived in China and I'm guessing it can't be for much, even if they did charge you 20 times the actual price.

I think you should be able to work something out with Citi since you've been a loyal customer and we're probably not talking about a lot of money here. It would be a shame to end up with a collection or charge off on your credit reports over this. I know you said you have no need for good credit in the foreseeable future, but you still want to avoid that if at all possible.

[shanecurran]

I agree with Joshua, the dispute is not over the quality of the merchandise and this should be pointed out to a citi representative.

[aduncan81]

The charge was about $125 for a cup of coffee and some fruit. I throughly explained everything to the rep and they said they could not do anything unless I had evidence that I had paid cash for the items that I had actually received. Most Chinese small vendors don't offer cash receipts and surely not ones running a scam.
I also pointed out that I never signed the slip but was told that because the card was swipped, it was ineffect an authorization! That makes no sense, any merchant could just add bogus charges after the swipe!

[shanecurran]

Still $125 is not worth the potential drop in credit score.

[JoshuaHeckathorn]

True, it's not worth getting a collection/charge off on your credit reports over $125, but you did get ripped here. This is credit card fraud, so I would keep fighting your way up the line until you reach someone that has the authority to pull some strings. Just speaking to a frontline rep probably isn't going to cut it.

Write a formal letter too. You may get a very different response. I've had restaurants add bogus tips after I signed before, and my credit issuer has always taken care of it for me. Good luck. Hopefully Citi will come through for you on this.

[snafu]

I too spend a lot of time in PRC and sadly suggest you pay the sum and call it a lesson learned. Can it be resolved in your favor by charging it off to business? Other than International Hotels and travel agents, CC are still used sparingly in China probably because of the rampant corruption on every level. Having paid cash, you would have needed to retrieve every copy of the original charge including the vendor's copy. Corruption is ingrained in the culture, after 5,000 years of experience, foreigners don't stand a chance.

Had you not noticed that foreigners are charged double the cost to locals? Have you ever tried to return a faulty piece of merchandise in China? That option just doesn't exist. Experienced buyers know a contract isn't worth the paper it' written on although the government is trying to find a way to solve that problem as the list of organizations refusing to do business in China lengthens.

[aduncan81]

Citi acknowledged that they miscategorized this as a "quality" dispute and have just now requested documentation from the merchant. Hopefully this will be resolved soon, its been about 2.5 months! The balance consists of the disputed amount and I am now longer using this card.

Since this card is my oldest credit account, I'll leave it open regardless of its resolved or goes into default and I have to file a formal complaint with the FTC.

[snafu]

Unless this charge was from an International hotel/restaurant chain, be prepared for a long wait. A favorite and successful ploy in PRC is to ignore, misplace, forget, on leave to fail to address/resolve a problem in the hopes that it will go away or expire or agitator gives up.

[JoshuaHeckathorn]

Unless this charge was from an International hotel/restaurant chain, be prepared for a long wait. A favorite and successful ploy in PRC is to ignore, misplace, forget, on leave to fail to address/resolve a problem in the hopes that it will go away or expire or agitator gives up.

So true- I wouldn't hold your breath. The idea of a "charge back" in China is still such a foreign concept. Who knows though...maybe you'll get lucky. Fingers crossed...