Attempting Credit Card Chargeback and Consequences

[wollepopolle]

Hi there,

I have had issues with a residential contractor who issued a proposal of $2500 and when he did an installation at my house added another $800 to the job. Because it was necessary for various reasons, he said. At the time, I agreed and signed the invoice for $3300. I later found out that he did shoddy work. His installation job (attic insulation, actually) is flawed in as he didn't fill in as much as he should have.

I asked him to resolve the issue but he refuses to do so and outright lied to me in the process. I then told him that I will go ahead and file a dispute with my CC company for the difference he charged me over the original proposal. The amount in question is $800.

Here is the question: I can prove my claim with facts and submit a strong case for CC chargeback. The contractor threatened me with sending this to collection and basically blemishing my credit. He said so in an indirect, less blunt way but the threat was clear to me.

I have a great credit score, all the credit cards in the world. I have my mortgage. I don't need any more credit. I pay no interest as I pay in full.

I hate to be browbeaten by people and am tempted to go forward with my claim.

What do you think? What are the consequences if the contractor sent this to collections? He'd probably have to sell the debt for pennies on the dollar and lose the money himself. But it would be his "revenge" I suppose. But it might also be an empty threat. Who knows...

I have only filed one chargeback claim ever in all the years of using cards. At the time, the CC company backed me up, and the merchant finally returned the funds voluntarily. I am an honest camper and have thought long and hard whether I should do this. It is a means of last resort for me. I am not willing to go through the small-claims process and prepay all these court fees (the other route I could take).

So, if a $800 collection showed up on my reports, would all these CC companies close down my cards that have been in good standing for many years? Would I seriously shoot myself in the foot if I pursued what I think is my money? Or would this be rather negligible?

[enharu]

You can certainly dispute this charge, and the contractor can treat the bill as unpaid as a result of the chargeback, and send it to collections.

If it does go to collections, it will affect your credit.

however, you could certainly dispute that collection record as well, but it's going to be long tiring process. Eventually if all else fails, you might have to bring this matter to court to be resolved. There is also a chance he might just sue you once the chargeback is filed. It really depends on how far he wants to take things.

The "safe" route would be to just go to small claims court directly, but any court process can be tiring and long.

If a collection shows up on your report, it will affect your credit score. You MIGHT get financial reviews or adverse action taken against you, depending on the lender. This really depends on the lender itself and your relationship with them. 

And I think you should pursue your money if you think he really did a shoddy job. It is best to hire another inspector and have him do a written report on the work done by this contractor.