- Discussion board

I understand that if a consumer has a dispute with one of the vendors which he paid via a credit card, that a Credit Card company must "credit-back" the consumer if he supplies documentation of the dispute.

Does this extend to vendors who declare bancruptcy after the consumer has paid his credit card bill in full? Are there Federal laws which cover the obligations of Credit Card companies to provide "credit-back"? Is there a dollar limit on such situations?

Even if a merchant goes out of business you can charge back the purchase to the credit card company. If you have documentation that shows that you attempted to solve the problem with the merchant, that is the best scenario. The most you could possibly liable for is $50.

Colin,
Thank you for your reply posting to me.
My situation here is that I purchased an around the world cruise from World Cruise Company of Toronto, Canada. I paid $12,000 on one credit card, and about $4,000 on another.
I have already paid both credit card bill in full in April 2000. The cruise was to depart on July 17, 2000. This company seems to have delared bancrupty, but they have not send me anything in writing. There are numerous web postings, and newspaper articles.
I have written formal Disputes letters to both credit card companies over a month ago. They reply that they are investigating the claim.
Are you telling me that these credit card companies will refund my money even though they risk not getting money back from the World Cruise Company? That would be wonderful, but almost too much to hope for.
Is there a Federal law that mandates such action from credit card companies?

Are you sure the Cruise is not going to still happen?? You should verify that the Cruiselines operations are going to actually stop. You don't want to miss the cruise and have the credit card companies turn around and say you should have been on the ship. My understanding of the Truth in Lending act is that you should get a full refund if the services are not satisfactory, which would be the case if the cruise did not even set sail. You may want to speak to a lawyer at some point if it looks like your not making progress.