Defaulting on a Credit Card after a dispute?

Question

I have just lost a dispute over a $4,000 charge from a foreign merchant. Costs were represented as 10% of actual bill, but he had documentation and I did not so the charge stood.

I'm very tempted to simply not pay the disputed amount and eventually have the card closed. We have very good credit and realize this will hit credit hard but it is a single event and explainable.

What else do I have to look forward to if I simply refuse to pay and stop using the card?

Answer 1

Pay your dues and don't buy from foreign merchants any more.  If you don't pay they will keep adding interest to the 4,000 and you will end up being nailed for even more.  Pay and learn the lesson.

Answer 2

"Costs were represented as 10% of actual bill, but he had documentation and I did not so the charge stood." -- what does that mean?

In answer to your second question:

They will assess a $40 late fee every month for between 3-6 months, and call you endlessly.  At the end of that period, your account will be sent to a collections agent.  The collections agent will sit on it for a couple of months all the way up to a couple of years, and your $4,000 will be charged at a daily compounded interest rate of some huge number.  When they feel they've sufficiently turned the $4,000 into a high enough amount ($7-8000), they will begin calling you endlessly and harassing you.  

After a collections agency shows up on your credit report, your credit will plummet, and you will be ineligible for a car loan, mortgage, new credit card, renting an apartment, some jobs, etc.

The collections agent will threaten you, and demean you, and attempt to bully you into paying.  When you don't pay, you will likely be taken to court, and court will order you pay some percentage of the $4000 + fees/interest that has been assessed to your account.  

Good luck!

Answer 3

You're looking at a 7-year charge-off on your credit report....This will ruin your credit rating for at least two years...and you'll have tarnished credit for years...

They will do one of two things: sell the debt to a collection agency, which will try to annoy/harass you into paying....or they will take you to court and try to get a judgement against you. If they're successful, they could garnish wages and freeze bank accounts.

Answer 4

really so your not going to pay? this is your bill and if its wrong, you need to PROVE it. if you dont or can't then you owe the balance they are telling you.

it would NOT be smart not to pay the difference if YOU were wrong

if you don't pay it will go to collections and have fun there