Merchant Threatening Legal Action

Purchased a prepaid debit card which stopped working during usage. I initially tried resolving issue with merchant but they stopped responding to my emails, I sent two follow up attempts and after no response enquired with bank about chargeback request.

The bank requested evidence for my claim, submitted, and was later approved. After it was approved the merchant reached out on two occasions asking for feedback. On the most recent occasion they advised me they would threaten legal action.

Do I have anything to worry about?

I have passed it onto my bank and am awaiting a reply but they advised on the first occasion where merchant emailed me that no response necessary as they were satisfied with what information I had provided and MasterCard ruled in bank/my favour.

Comments

  • +2 votes

    Yes and No

  • +2 votes

    It would be great to have some details of the issue…

    •  

      Fixed

      •  

        It would be great to have some details of the issue…

        Purchased a prepaid gift card which stopped working during usage.

        More info please.
        How
        Why
        When
        What

  • +3 votes

    They can certainly take legal action against you, and your bank is unlikely to be a party to it. This isn’t a concern for your bank.

    Whether the action is successful depends on the circumstances of your chargeback, but I can definitely imagine circumstances where the bank might side with the card holder but the court will side with the vendor.

    If you did everything to fulfil your side of the contract, you will likely be ok, but since your side is likely the payment, you might need to consider the circumstances carefully.

  •  

    How much was the card? Consider how much a lawyer would cost and decide whether it is likely legal action would occur I guess.

    More likely they may sell the debt to a collector which could be a hassle.

    • +1 vote

      $100USD so about $170, it's not an Australian based merchant either so I'm unsure if they're just trying to get a reaction by using such words like legal advice.

      • +4 votes

        They're not going to do anything it's a bluff. But did you ask for a chargeback for the full $100usd? Because it sounds like you spent some of it already.

      • +1 vote

        Just ignore them.

  • +1 vote

    they advised me they would threaten legal action.

    Do I have anything to worry about?

    Only if they proceed with legal action. Even if you eventually win, you still need to defend.

  • +6 votes

    If they took legal action it would cost them more than the debt, i very much doubt they would waste their time, they seem to just be posturing.

    Even if they took legal action, they would have to do it in their own country, and their laws do not apply here.

  •  

    How can a gift card stop working during usage? Did you mean it was not valid? The card was not recognized? Value was zero? What?

    Did you purchase a card overseas that could not be used in Australia?

    • +3 votes

      Based on this: https://www.ozbargain.com.au/node/628580

      I guess service cancelled subscription when they saw it was being used from outside USA.

      • +3 votes

        Then I don't see why OP is complaining he went against TOS.

      • +7 votes

        So a more accurate description from the OP perhaps should be:

        Purchased a gift card for a streaming service that is overseas. They shut it down due to my use being against TOS. As a result I lost the balance of my gift card. Even though I was in the wrong for doing this in the first place, I did a chargeback because my ego allows it. Now I have bad karma.

        •  

          It was a pre-paid debit card not a gift card to a specific company.

          Modified post to change word from gift to debit, my apologies.

      • +1 vote

        Didn’t need to buy a gift card for that. I use https://www.usunlocked.com/ for Hulu
        Gives you a US address and a US credit card number. Easy

    •  

      The pre-paid debit card kept declining at checkout online, no matter where I was trying to use it. Tried troubleshooting with merchant but they then stopped responding.

  •  

    Would love to read the rantings of OP in the emails when they’re the one going the TOS. No wonder they didn’t dignify with a response.

    •  

      That's a great suggestion. I'll have a look into it.

  •  

    At least the OP has done the right thing by posting this with a burner account.

    •  

      Not a burner account :)

  •  

    international company more than likely won't chase you over 100 USD, not worth it for them