Legal Question in Credit and Debt Law in Georgia

You may be out of luck or you may have certain rights.

Bankruptcy by a company could limit those rights.

Whether or not you made a timely challenge, in writing, of the charge on your card, also matters. If you failed to do that within 60 days, you lost your rights under federal law.

And whether the company and bank are two different companies matters.

Without more details there is no way to tell you what you can do. The fact this has gone to collections tells me that you have missed important steps.

If this were not in bankruptcy, I would suggest that you write a letter to someone in charge at the company if you are owed money by the company.

Do you have proof that you returned the item? How did you pay? Via credit card or by some other means? Do you have proof of payment?

If you paid by a credit card, you have 60 days to dispute the charges after they first appear on your credit card statement. Usually the credit card company requires that you first try to resolve the dispute with the merchant and that is why you do the letter. If you used an ATM/debit card, you do not get the same rights of dispute and if you do not notify the bank of the problem very quickly, then you are going to be liable for the cost of the item.

The problem here is that the company has filed bankruptcy. If that is true, then the company CANNOT issue you a refund at all. In such case, you would have to file a proof of claim with the court in which the bankruptcy is pending if the company filed a chapter 11 reorganization. If the company filed a chapter 7 liquidation, it means the company intends on going out of business. You can file a claim if the company has assets, but as a practical matter, it is unlikely that you will get your money back.

However, if the company is calling, then they are under the assumption that you have not paid. Have you paid? If not, then you are not due any refunds. Why is "the bank" calling you? Do you mean that the bank through whom you have your credit card is calling? If that is the case, why have you not paid on the credit card? The bank that issued the credit card has no relationship to the company from whom you bought the blouse. Or did you pay via debit card?

Bottom line - if you used a credit card and are within the dispute period, you can try disputing the debt. If you used a debit card, you can try doing a letter to the bank, but they do not really care and will probably expect you to pay. While you may be entitled to a refund from the company, if they are in bankruptcy, then you need to file a proof of claim.

If I have this wrong, I apologize, but I don't understand what "bank" is calling if you already paid. If you wish to provide more details in confidence, I give free consults via email. Please contact me at [email protected] if interested.