Legal Question in Consumer Law in New York

In a contract for services (not goods) in NY, is the phrase "you will not dispute or otherwise seek a “chargeback” from the company whose credit card you used" legal? Doesn't it go against the Federal Fair Credit Bureau Act? (A local contract can't override a federal act, correct?) The company didn't provide the service, yet the visa card was charged and the company refuses to give a refund ("no refunds" is also stated in the signed contract). Shouldn't the consumer still be able to dispute the charge through visa if the company refuses to refund the money? I want to dispute the charge because no services were given but I don't want to possibly be brought to court at some future date.

Asked on 3/26/13, 11:25 am

1 Answer from Attorneys

Jignesh Shah Law Office of Jignesh J. Shah, LLC

Even if you are able to do a chargeback (contact Visa to find out), you signed a contract agreeing to no refunds. You may succeed in disputing the charge with Visa, but then would potentially face a lawsuit from the merchant based on breach of contract.

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Answered on 3/26/13, 12:14 pm

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