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Provisional Credit-Debit Card Dispute, Cancelled Contract

Answered by: 
Randy Carey

Question: 
The Bank received a Visa Debit dispute from a customer, who stated that in 2005 they did have a 24 month contract with Direct TV but have never redone another contract. They charged her account for cancelling. Is this considered an authorized transaction and when would we need to give a provisional credit back.
Answer: 

From Direct TV's contract:

5. CANCELLATION

(a) Term. The term of this Agreement is indefinite and Service will continue until canceled as provided herein. Unless you notify us that you wish to cancel it, we will automatically renew Service that you subscribe to on a periodic basis, including any monthly or annual subscriptions and seasonal sports subscriptions, as long as we continue to carry the Service.

(b) Your Cancellation. You may cancel Service by notifying us. You may be charged a deactivation fee as described in Section 2 and issued a credit as described below. Your notice is effective on the day we receive it.

The contract may have automatically renewed if the customer does not cancel according to the contract or this may have been a contracted deactivation fee. I think the customer needs to review the original contract.

First published on BankersOnline.com 1/14/13

First published on 01/14/2013

Filed under: 
Compliance
Filed under compliance as: 
IT

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