Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
Hi! LegalGems here. I'll do my best to assist you.I can only provide general information, so a follow up consult with a private lawyer is recommended. If a consumer makes a purchase and the seller is unable to deliver the product/service, then that is considered breach of contract. The damages for a breach of contract are generally the price paid for the goods/services.
If a seller fails to perform according to the terms of the contract, the consumer can first dispute the issue with the credit card company. Most credit card companies are very proactive in resolving these disputes. In fact, if the seller fails to respond, or cannot provide proof that the transaction occurred, the card company will often reverse the charges.
Since the company will be shutting down and will not be able to provide the goods/services, that would generally be considered a material breach. A material breach goes to the very heart of the matter, and the goal is to restore the parties to the position they would have been in but for the breach i.e. return money to plaintiff, tickets to defendant.
If the tickets had an expiration date of the 26th, there would be no actionable claim; however, if there was no expiration, and they were purchased with the intent to use them a few months from now, and there were no such restrictions, typically the seller would be found in breach. Since most credit card companies have a time limit for initiating a dispute, it is best to initiate it immediately; for if this time period lapses (generally 60 days but it depends on the individual card) then the fact that you called in and spoke to a couple of different reps is very hard to prove, so an extension for filing would be unlikely. The other alternative is to sue in small claims; but ideally the credit card company will reverse it.
Under section 170 of the Fair Credit Billing Act, (an amendment to the Truth in Lending Act), chargebacks are permitted when the seller fails to provide the goods/service, or when the transaction was unauthorized.
I am still a bit confused why the Credit Union told me that they can only cover fraudulent claims, and were so adament that this would not be covered.