painful experience disputing with chase IHG credit card

[rachael]

I disputed an unauthorized charge from IHG credit card/chase. However, after two months of investigation, they decide this charge is valid. They also notified 3 credit reporting agencies (TU, Equifax, Experian) that I disagree with their decision.
I have 7-8 years relationship with chase, and I am so disappointed with their customer service.

My questions is
1) This charge is for staying at a holiday inn, where is far away from the place I live. I went to work on that day, how could it possible I can stay at a holiday inn. But apparently, chase insisted that the charge is valid. Does anybody know what to do with this?

2) When chase reported to 3 agencies about my dispute, does it hurt my credit score?
This makes me feel sometimes it is better just paying the "fine" rather than having a "bad mark" on the credit report?

Any help will be appreciate.

 

[FlyingExplorer]

Wow, sorry! What is the amount in question?

Huh, why are they reporting this to credit bureaus? Did you not pay the credit card off?

 

[rachael]

It's just $118 or so. The important thing is not just the money. The important thing is " I didn't authorize that transaction" but chase doesn't believe the truth. I never missed a single payment for 7 years, and I paid off every month.
Maybe it's safer to change the credit card number every 2-3 years.
I don't understand why they report this to credit bureaus? I also would like to know.

 

[FlyingExplorer]

Have you ever stayed at that hotel?

 

[rachael]

never

 

[PNW-MSSER]

Usually card companies side with consumers, maybe time to up the ante and report to regulatory agencies ? Credit disputes are almost always reported to bureaus, there is a DRG remark which is not derogatory but it stands for something else.

 

[Confectioneer]

That is surprising they aren't taking your word.

Presumably there's a date/timestamp for the CC "swipe"; if you get that info, you could see what other daily activity (like credit card usage, etc.) occurred at a similar time as dispute data.

The hotel should still have a copy of the folio, with "your" signature. You could ask for a copy of that.

It might be too late for security camera footage, but wouldn't hurt to ask the hotel for any.

You could also file a police report, provide a copy to Chase, and ask Chase to reissue the card due to fraud. That's a lot of trouble to go through for someone trying to scam them out of ~$100.

Good luck!!!

 

[Yeshu]

wow...you never booked a stay or checked in and you got charged....

 

[cocobird]

In order to decide that a charge is valid, Chase must investigate and review documentation to make that determination. If Holiday Inn is saying it is a valid charge, they would have to have some kind of authorization, unless the claim is that you failed to cancel a reservation and this is a penalty charge.

So I would do the following:
- File a complaint with the Consumer Financial Protection Bureau, which regulates Chase. Chase will be required to provide documentation to the regulator with an explanation of why the charge is valid.
- Request a copy of the documentation directly from Chase. You will also likely see a copy from the CFPB. It will be interesting to see if the docs are identical.
- Review the documentation. If a signature was required because you checked in, you should be able to prove you didn't sign it.
- If it's a cancellation penalty, it will be tougher to argue. If you are a member of the hotel program, then it's likely your membership number is missing. This adds to your side of the argument.
- Having a dispute should not directly affect your credit score unless you don't pay the disputed amount after final determination. I'd pay because you don't want that to affect your score. Paying does not mean you shouldn't pursue the dispute. If more information comes to light that Chase made a mistake, they will refund the money by crediting your account.
- You have the right to place a statement in your credit file for other lenders to see. While a lender is not obligated to believe you, it cannot hurt to have the statement as long as it is concise and unemotional.

I encourage you to exercise your consumer rights.

 

[rachael]

Thanks cocobird's suggestion. I will try to do that.
Chase did provide me the document from the Holiday Inn - the guest information.
The guest is somebody from Canada, and I even don't know who he is. But the strange thing is that his IHG membership is the same with my husband's. I have linked my credit card information to my husband's IHG ID. My guess is that this Canadian's credit card didn't go through, so Holiday charge my credit card as a backup.
I didn't sign anything, and my signature is not on the document.
I swear that I've never booked or stayed at that hotel.
I am very surprised that they can decide the transaction is valid without my authorization and signature. It is insane!

And also that makes me worry about my IHG points. Anyone who can guess your ID number is able to steal it.

Do you think I should contact chase executive customer service again or File a complaint with the Consumer Financial Protection Bureau?

Many thanks!

 

[wasabirobot]

It sounds like something that IHG needs to get to the bottom of. Their hotel somehow compromised your credit card information via a lack of security in the rewards account.

 

[cocobird]

While it's possible that some type of fraud is involved, it may be equally possible that this is a simple mistake. Someone may have typed in an incorrect number. I've certainly done it.

I'd suggest the following steps:
- go ahead and file disputes with the CFPB

-contact the hotel directly about the issue
Hotels are supposed to verify the identify of the person who checks in

- contact IHG about the issue, a couple of thoughts here

I remember reading about a situation where the same membership number was given to two people. Although unlikely, it could happen

If the hotel verified the identity, then they can't give points to someone else's account. So did your husband get points? If not, then why would they accept the credit card info tied to the account since they knew it wasn't the right person. Also hotels are supposed to obtain a credit card at check in, so clearly the person could not have had your credit card. Have the hotel charge the back up credit card and credit you back.

- contact the person who checked into the hotel

it was an honest mistake by the hotel employee, the person may not be aware of it and genuinely thought the hotel forgot to charge him or that the charge was delayed.

if it isn't an honest mistake, the person likely gave a "fake address" so that would strengthen your case of fraud

If I think of anything else, I'll post it for you.

Good luck!