Office of Thrift Supervision
To Whom It May Concern: 6/14/04
I am writing this letter to complain about my credit card company (Capital One). On January 16 of this year I purchased a tub and drain valve for a total of $549.09. The items were returned the same day they were picked up as the tub was the wrong size.
The Merchant wanted to charge me an enormous amount of fees, which I refused to pay.
I immediately notified Capital One and disputed the charges. The paperwork was filled out as to why I was disputing the charges. During the dispute process the Merchant sent me a letter informing me that they now were going to charge me for storage at rate of $100 a month. I contacted Capital One and they advised me that storage fees were a separate charge and had nothing to do with the dispute. Capital One advised me that if I wanted to dispute the storage fees, I would have to take it up with the Merchant or get an attorney. The dispute continued until I received a letter from Capital One dated
4-13-04 indicating the Merchant would settle the dispute. I called and talked to
R. Hughes from Capital One who said basically, if I agree to pay $70 the Merchant would drop the dispute. I faxed R. Hughes from Capital One (SEE ATTACH) a letter authorizing them to pay $70 if it meant the dispute was settled.
Then on 6-13 I checked my Capital One account and noticed a charge for 477.09. I contacted Capital One on 6-14-04 and talked to an individual named Franklin. Franklin told me I was charged 50% restocking fee and that is why the 477.09 was charged back to my account. I told Franklin that 50% of the tub would only be around $200 and he replied the case has been closed and there is nothing further Capital One can do.
I requested to talk to a supervisor (Donna) who said she reviewed my account and that Franklin was wrong. Donna asked if I was aware the merchant had been charging me storage fees. I told her that I was but that Capital One advised me that the charge was not to be considered in the dispute as storage fees have nothing to do with the original credit card charge in dispute. Donna said that Capital One paid the restocking fee and the difference paid was for the storage fee. I told Donna that there was 2 items that were returned. One had no restocking charge and it was $100 and then the tub was $307 that the merchant was charging a restocking fee. I have attempted from the beginning to get credit for the $100 item and the difference of the other but I was told it was one charge and it had to be handled this way.
I then talked with Wes Gephard. I told him the circumstances and asked how Capital One could pay storage fees on items that were returned to the merchant. He said he did not see that in any notes. I told him Donna had just told me they did and he said that he did not see anything about storage fees. I then asked why Capital One gave all the monies back to the merchant. Gephard was not able to explain why no money was refunded back to me. Gephard said he would like to look into the matter and maybe he would have a better explanation in 2 to 4 days. I told him that they had 4 months and fees continue to add up and that I would be filing my complaint as they did not have the authorization to pay storage fees on an item that was returned to and accepted as returned to the Merchant. I also told him that most of the money should have been adjusted since there was only one item being disputed. He had no reply.
My Complaint is Capital One was disputing a charge on my behalf. The only part of the dispute which if paid would have only been $153 from the original purchase of $549.09.
($549 less $92.40 for the returnable valve, the tub: 50% of 307.45 = 153.70)
Capital One did not have the authority to pay any fees that were not part of the dispute.
Capital One should have refunded my account $395.39. Capital One continued to charge me interest on the full amount in dispute this allowing them to make more then they would have if my account was properly credited.interest on $549.09 is more then interest on $153.
Joe
canoga park, California
U.S.A.
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