Client Disputed payment - says it was the bank’s fault

[indiaink]

I have a former client who purchased $450 worth of services from me. They paid $100 deposit for a tattoo appointment, and they paid $350 for a graphite/pencil portrait drawing. 9/13/24. I have a strict no refund policy. It is in the contract you sign upon receiving the tattoo as well as in the terms when you make any purchase in my shop, good or services. 

Approximately four days after making the purchases, Square informs me that the transactions have been disputed. 

I reached out to the client only to be informed by her, that the bank submitted a fraud alert on the transactions and requested the customer respond. She says she was sick and missed the fraud alert, and the bank disputed the charges in her behalf without her knowledge. This was September 16, 2024. She said she called the bank and canceled the dispute!

For weeks she insisted that she was awaiting the dispute cancellation letter. She claimed she was so angry at Chase Bank that she closed the acct. 

Fast forward to Nov 10, 2024 when I purposefully inform a mutual friend that I contacted a lawyer about the dispute. Of course the mutual friend has zero loyalty and told the client everything I said to her. Which was my hope. 

On November 16, 2024 I finally received the dispute cancellation letter via text. 2 months and 3 days later! Astonishingly it is dated November 10, the same day I spoke to our mutual friend. 

see details below: I’ve removed personal info. 

Update:

We have updated information about your claim

Date of inquiry: 09/16/2024

Claim number: [Redacted]10001

Card ending in: ——————-

Claim related to account ending in: ———

Dear ————————-

We have researched the transaction(s) you reported on 09/16/2024.

Here's what you should know

We found that the transactions) was processed according to the information you provided or was authorized. 

• As a result, we are removing $450.00 from your account on or after. If the account the claim is related to is no longer open with Chase, and you don't have an open account with Chase for us to debit, we may request you to repay the credit(s).
• Contact us if you would like to request the information we used for our research.

Now, i’m no banking expert, but it appears from the dispute cancellation letter, The client got her money back. (Because I believe she never actually canceled the dispute) 

Now Chase Bank wants their money back. And if she canceled the dispute on September 16, then why would the bank want  money back 2 months later? 

This person is insisting that I am attempting to assassinate their character. 

Am I crazy????? 

I called Chase Bank and ask them if they ever submit a dispute on behalf of a client and they said absolutely not!

So again, am I missing something? Because I am confident that this client attempted to dupe me, and our mutual friend is insistent that she did not and that I’m trippin!

I’m a small business. $450 is a LOT to trip on. 

[Candlestore · Accepted solution]

@indiaink ;

Customer probably got information to claim this as a fraud case to get out of paying.  This has increased the last few years with how prices have increased because of inflation.  Then people look for ways to save money and get bad information from the internet.   The thing here is you would have to Believe what she is telling you over what is in writing from Chase and Square and your Bank account, 3 forms of proof Payment was not paid over her saying it was with no proof of payment.  

Now on the contract you have or had with this client, do you have written in the contract somewhere that any associated fees to collect any collection of payment will be added on to the costs of the charge that was not paid for?

Meaning in your case $450 plus all leagal fees to collect said fee.   These can add up quickly because Lawyers are not cheap, getting Chase letters of client not paying through their legal team and the time to edit out her account numbers SS#  etc will not be cheap.  

So maybe informing your Non Loyal mutural friend of these in your contract may get your money back. 

You may not win this case without spending a fortune in legal fees, but could write a New Contract to have these Fees PAID for by client at time of hearing or held by courts in Escrow if client wants to fight the rulling still.

Good luck and hope you win.