Sue credit card company or walk away?

[Pokadots23]

What is the name of your state (only U.S. law)? California


Running out of options, so need advice. I've been trying to fix this on my own for the past 6 months. It started with my insurance company and the policies I had. Same company owns a credit card company. Policy premiums get sent to the cc for payment.

I've been a faithful, diligent customer, paying my Visa card in full ea month to cover the insurance premiums. Last fall, the bank lost one of my payments, so I got late notices and threats of cancellations. What happened?

Hours on phone with reps resulted in one cc bank rep telling me (with an insurance rep on call to verify) that she would find that lost payment and apply it to the insurance. I didn't think it would work, but I had to trust her.

That was before Thanksgiving. Post Thanksgiving, I got a collections notice from said large bank corporation. What? This rep, instead of finding my lost payment and applying it to the insurance as she said, went ahead and charged my Visa that amt and sent those funds to the insurance. I made the funds available, so why did she charge my card?

Need to truncate this story, but in short, I've spent hours on the phone with reps, a supervisor, even 3 ppl from Corporate and nothing's being done. How hard can it be? Remove those charges and remove the negative reports you're placing every 2 weeks on my credit reports.

The charge amt is less than $1k and I have funds to pay that, but it's the principle and the pain and anguish they've put me through. I had a major family medical emergency last fall, plus, the credit problems they're causing. It's been months of runaround and my case is currently at the "highest level of complaints." Nothing being done still.

I'm sure an attorney is too expensive for such a miniscule amount, but what other options are there? I am not afraid to sue them in small claims if I have to, but how would I even begin to sue a large corporation in small claims?

Would you just pay off the charge, deal with the bad credit reports and walk away? My credit hovered around 830 usually and I'm not planning to buy another house...maybe newer used car, but I would pay cash in full, so no real need for credit.

Fight them or walk away? Thanks

 

[Zigner]

If you've been paying each month in full, then why were you sent to collections?

 

[Pokadots23]

If you've been paying each month in full, then why were you sent to collections?

Exactly! Imagine my surprise when I got the late notices last fall. Then collections all of a sudden! It's quite a messy story, which I do not mind sharing, but in short, the credit card company lost one of my payments, which they acknowledge I made. My cc statements show I made 2 payments in full. Instead of finding that lost payment and applying to the correct insurance charge, they charged my cc card again and sent those funds to pay the insurance.

So the lost payment I gave them is still lost out there in their system. I provided the funds, so why did they charge my card for it? That's what I want them to clear up. They need to remove the charge and fees, but they won't, so I'm thinking of suing.

I'm in collections, because they charged my cc erroneously and I refuse to pay it. So with an unpaid balance on my credit card--I'm in collections (for a debt I don't owe).

Thanks for reply.

 

[Zigner]

You're making no sense...so let's break things down in to two separate issues, as if it were two different entities:

Your credit card: Are they saying that you failed to make a payment six months ago? If so, why didn't/don't you make another payment to avoid collections and then work to clear the matter up?

Your insurance policy: Are you paid in full at the present time?

 

[Pokadots23]

You're making no sense...

I understand. My case is actually very complex. I spend 2 hours ea time with insurance and bank reps so they can understand 6 months of notes on my file. I don't think you guys want all that repeated here, but maybe u do.

so let's break things down in to two separate issues, as if it were two different entities:

Your credit card: Are they saying that you failed to make a payment six months ago?

Yes, I have a balance right now on my cc that I have not paid...because it's not a debt I owe. The cc charged this amt on my cc erroneously when they promised to "fix" a problem I had previously where they lost my payment.

If so, why didn't/don't you make another payment to avoid collections and then work to clear the matter up?

Good question. This didn't start off with any unpaid debt. I had paid all my cc balances faithfully as I said. The cc company suddenly charged my acct and bam, it went into collections. What the? I had no idea they would report this to the credit bureau. Now if I pay this cc debt that I don't owe, then instead of fighting for the $600 payment that they lost, I will instead be fighting them for $1300 ($600 + $600 +late fees, penalties, interests). I'm having a hard time to get them to refund me the $600 payment they lost, so I'd be fool throwing more money at them.

Your insurance policy: Are you paid in full at the present time?

A week after this mess happened, I was so disgusted with the runaround and my agent's condescending lack of interest, that I cancelled all but my life insurance policies. Yes, I am current on the 3 life policies. I stopped using this company's Visa card to pay those premiums, so I have no problems with these policies.

P.S. I am considering suing them in small claims. A lot of work for just a small amt. Thanks.

 

[Zigner]

So, we're actually only dealing with the credit card company, not the insurance company. Even though they have the same name, they are separate entities. The charge in question could have been anything.

If you feel that an improper charge was made to the card, you should have disputed it within 60 days of the statement date when the charge first appeared. Since you have the money to pay this, you are simply cutting off your nose to spite your face by not paying the balance and then pursuing it.

 

[Pokadots23]

You're making no sense...so let's break things down in to two separate issues, as if it were two different entities:

Your credit card: Are they saying that you failed to make a payment six months ago? If so, why didn't/don't you make another payment to avoid collections and then work to clear the matter up?

Your insurance policy: Are you paid in full at the present time?

So, we're actually only dealing with the credit card company, not the insurance company. Even though they have the same name, they are separate entities. The charge in question could have been anything.

If you feel that an improper charge was made to the card, you should have disputed it within 60 days of the statement date when the charge first appeared. Since you have the money to pay this, you are simply cutting off your nose to spite your face by not paying the balance and then pursuing it.

No, I disputed this erroneous charge the day I got the notice in the mail and no, the erroneous charge could not be anything. I only use this card to pay my insurance premiums since the two are linked. The charge is a very specific amount that happened right after I talked to the credit card rep, so I know the cc did it. I have given money away to friends in need. Gave them money, not a loan. Fortunate for me that I can do that, but I do not like to give $1300 to large corporate who bullies the little guy. I may pay the $600 again just to stop the dinging of my credit and continue to pursue them. I don't expect anyone to understand this case in an online forum. Thanks for ur time.

 

[Zigner]

No, I disputed this erroneous charge the day I got the notice in the mail and no, the erroneous charge could not be anything. I only use this card to pay my insurance premiums since the two are linked. The charge is a very specific amount that happened right after I talked to the credit card rep, so I know the cc did it. I have given money away to friends in need. Gave them money, not a loan. Fortunate for me that I can do that, but I do not like to give $1300 to large corporate who bullies the little guy. I may pay the $600 again just to stop the dinging of my credit and continue to pursue them. I don't expect anyone to understand this case in an online forum. Thanks for ur time.

It doesn't matter WHAT the charge was on your credit card - you failed to dispute it in the appropriate manner. You seem to have a fundamental misunderstanding about the correlation (or lack thereof) between your insurance carrier and your credit card company.

As for digging in your heels...suit yourself.