Chargeback Dispute Kit - New York

CHARGEBACK DISPUTE KIT — NEW YORK

New York provides robust consumer protections for credit card and debit card disputes through GBL Article 29-A (§ 511-520-e), which regulates credit and debit card practices, and GBL § 349, which prohibits deceptive business practices with a powerful private right of action. The New York Department of Financial Services (DFS) provides additional regulatory oversight of banking institutions.

PART A: FEDERAL LEGAL FRAMEWORK

Credit Card Disputes — Regulation Z / TILA

The Fair Credit Billing Act (FCBA), codified at 15 U.S.C. § 1666 and implemented by Regulation Z (12 C.F.R. § 1026.13), governs billing error disputes for credit card transactions.

Key Protections:

Billing Errors Under TILA:

☐ Unauthorized charge
☐ Goods/services not accepted or not delivered as agreed
☐ Failure to provide documentary evidence upon request
☐ Computational or accounting error
☐ Failure to credit payment or return
☐ Failure to deliver statement to last known address

Debit Card / EFT Disputes — Regulation E / EFTA

Consumer Liability Tiers:

Error Resolution Timeline:

In an action involving consumer liability for an unauthorized electronic fund transfer, 15 U.S.C. § 1693g(b) places the authorization and liability-condition burden on the financial institution.

PART B: NEW YORK-SPECIFIC CONSUMER PROTECTIONS

GBL Article 29-A — Credit and Debit Card Protections (§ 511-520-e)

New York's General Business Law Article 29-A provides specific protections for credit and debit card holders:

Limitation of Liability (§ 512):

• New York limits cardholder liability for unauthorized use of credit cards and debit cards
• Consistent with the federal $50 cap for credit cards
• For debit cards, New York incorporates the federal EFTA liability tiers

Credit Card Issuance (§ 512-a):

• No credit card may be issued except in response to a request or application, or as a renewal/replacement

Credit Information Disclosure (§ 520-c):

• The Department of Financial Services must maintain a telephone number and website for consumers to obtain information on credit card rates, fees, and grace periods
• Every credit card issuer must include on solicitations, applications, and monthly billing statements a notice directing New York residents to the DFS for comparative credit card information

Grace Period for Reward Points (§ 520-e):

• Credit card issuers must provide a 90-day grace period for use of reward points after account closure or program change

Secured Credit Cards (§ 520-b):

• Specific protections for secured credit card holders, including disclosure requirements

GBL § 349 — Deceptive Acts and Practices

New York's primary consumer protection statute, GBL § 349, provides a powerful private right of action:

Prohibited Conduct:

• Deceptive acts or practices in the conduct of any business, trade, or commerce in New York
• Applies to virtually any consumer transaction, including banking and credit card disputes
• Does not require proof of intent to defraud — mere deceptive conduct is sufficient

Private Right of Action (§ 349(h)):
| Remedy | Detail |
|--------|--------|
| Actual Damages | Full recovery of damages sustained |
| Statutory Minimum | $50 minimum damages |
| Treble Damages | Up to $1,000 (court may award treble damages up to this cap) |
| Attorney Fees | Reasonable attorney fees |
| Court Costs | Costs of the action |

Key Advantages of § 349:

• No reliance required: Unlike common law fraud, the consumer need not prove individual reliance
• Broad standing: Any consumer who has been injured by the deceptive practice may sue
• AG enforcement: The Attorney General may also bring actions under § 349 with broader remedial powers
• Statute of Limitations: 3 years from the date of the deceptive act

GBL § 350 — False Advertising

GBL § 350 provides parallel protections against false advertising:

• Prohibits misleading advertising in any form
• Same private right of action structure as § 349
• Relevant when the chargeback dispute arises from deceptive merchant advertising

New York Department of Financial Services (DFS)

DFS is New York's primary financial regulator:

Regulatory Authority:

• Regulates all banking institutions, insurance companies, and financial services companies operating in New York
• Issues regulations under the Banking Law that impose obligations on financial institutions
• Enforces consumer protection requirements
• Authority extends to violations of GBL § 520-c and related credit card provisions (per GBL § 520-c(d))

DFS Cybersecurity Regulations (23 NYCRR Part 500):

• Requires regulated entities to maintain comprehensive cybersecurity programs
• Includes incident reporting requirements
• Relevant when unauthorized transactions result from security failures at a DFS-regulated institution

Consumer Complaints:

• DFS accepts and investigates consumer complaints against regulated financial institutions
• Phone: (800) 342-3736
• Online: dfs.ny.gov/consumers/file-complaint

PART C: CHARGEBACK REASON CODES — COMMON CATEGORIES

Category 1: Fraud / Unauthorized Transaction

Category 2: Goods or Services Not Received

Category 3: Goods or Services Not as Described

Category 4: Duplicate Charge

Category 5: Incorrect Amount

Category 6: Credit Not Processed

Category 7: Subscription / Recurring Billing

(See detailed descriptions in federal framework above.)

PART D: THREE-LETTER DISPUTE KIT

LETTER 1: INITIAL DISPUTE LETTER TO CARD ISSUER / BANK

[__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

[________________________________]
[Card Issuer/Bank Name]
[Billing Inquiries Department / Dispute Department]
[________________________________]
[________________________________]

Re: Billing Error Notice / Dispute of Unauthorized Transaction
Account Number ending in: [____]
Disputed Transaction Amount: $[________________________________]
Transaction Date: [__/__/____]
Merchant Name: [________________________________]

Dear Billing Inquiries Department:

I am writing pursuant to the Fair Credit Billing Act, 15 U.S.C. § 1666, Regulation Z, 12 C.F.R. § 1026.13, and New York General Business Law Article 29-A [OR the Electronic Fund Transfer Act, 15 U.S.C. § 1693f, and Regulation E, 12 C.F.R. § 1005.11] to dispute the following transaction(s) on my statement dated [__/__/____]:

Reason for Dispute

(Select and complete the applicable section.)

☐ Unauthorized Transaction / Fraud
I did not authorize this transaction. My card was ☐ lost ☐ stolen ☐ never out of my possession (card-not-present fraud). Discovered on [__/__/____]. Under 15 U.S.C. § 1643 and N.Y. GBL § 512, my maximum liability for unauthorized use is $50.

☐ Goods or Services Not Received
Ordered [________________________________] from [________________________________] on [__/__/____]. Expected delivery: [__/__/____]. Not received. Merchant contact: [________________________________].

☐ Goods or Services Not as Described / Defective
Received [________________________________] on [__/__/____]. Materially different because: [________________________________]. Merchant contact: [________________________________]. Under N.Y. GBL § 349, the merchant's misrepresentation constitutes a deceptive act or practice.

☐ Duplicate Charge
Original: [__/__/____] for $[________________________________]. Duplicate: [__/__/____] for $[________________________________].

☐ Incorrect Amount
Correct: $[________________________________]. Charged: $[________________________________]. Overcharge: $[________________________________].

☐ Credit Not Processed
Returned/canceled on [__/__/____]. Promised credit: $[________________________________]. Not received. Tracking: [________________________________].

☐ Subscription / Recurring Charge Not Authorized
Canceled with [________________________________] on [__/__/____]. Confirmation: [________________________________]. Still charged $[________________________________] on [__/__/____].

Actions Already Taken

Request

1. Investigate and issue a chargeback for $[________________________________]
2. Credit my account
3. Remove related finance charges and fees
4. Block future recurring charges (if applicable)
5. Provide written confirmation

Compliance Reminders:

• Acknowledge within 30 days (Reg Z)
• Resolve within 2 billing cycles / 90 days (Reg Z) [or 10 business days / provisional credit (Reg E)]
• Do not report as delinquent during investigation

Enclosed Evidence

☐ Statement with disputed transaction(s) highlighted
☐ Receipts or order confirmations
☐ Merchant correspondence
☐ Product listing screenshots
☐ Delivery/return tracking
☐ Cancellation confirmation
☐ Photos/videos of defective goods
☐ Police report (if fraud)
☐ Other: [________________________________]

Sincerely,

Signature: ________________________________________

Printed Name: [________________________________]

Address: [________________________________]

Phone: [________________________________]

Account Number ending in: [____]

LETTER 2: FOLLOW-UP LETTER — DISPUTE DENIED OR UNSATISFACTORY

[__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

[________________________________]
[Card Issuer/Bank Name]
[Billing Inquiries Department / Dispute Department]
[________________________________]
[________________________________]

Re: Second Request — Dispute on Account ending in [____]
Original Dispute Date: [__/__/____]
Dispute Reference Number: [________________________________]
Disputed Amount: $[________________________________]

Dear Billing Inquiries Department:

I am writing to follow up on my billing error dispute submitted on [__/__/____]. Your response dated [__/__/____] indicated [________________________________].

Why the Resolution Is Inadequate

[________________________________]
[________________________________]

Additional Evidence

☐ [________________________________]
☐ [________________________________]

Legal Basis for Continued Dispute

Federal Law:

• Billing errors include charges for goods or services not accepted or not delivered as agreed (15 U.S.C. § 1666(b)(3))
• If no error found, you must provide written explanation and documentary evidence upon request (12 C.F.R. § 1026.13(f))
• Section 1666(e) provides a forfeiture capped at $50 for specified FCBA noncompliance; § 1693f(e) permits treble damages only if a court makes one of its specified bad-faith or knowing-and-willful findings

New York Law:

1. GBL § 349: Your failure to properly investigate and resolve this dispute may constitute a deceptive act or practice. Under § 349(h), I may recover actual damages (minimum $50), treble damages up to $1,000, and attorney fees.

2. GBL § 512: New York limits cardholder liability for unauthorized use. If this dispute involves unauthorized use and you are attempting to hold me liable beyond the statutory limit, you are in violation of New York law.

3. DFS Authority: As a financial institution operating in New York, you are subject to oversight by the Department of Financial Services. I reserve the right to file a complaint with DFS if this matter is not resolved satisfactorily.

Request

1. Reconsider and issue credit for $[________________________________]
2. Provide copies of all documents relied upon
3. Note applicable federal and state penalties for non-compliance

I reserve all rights under federal and New York law.

Sincerely,

Signature: ________________________________________

Printed Name: [________________________________]

Enclosures: Original dispute letter, bank's response, additional evidence

LETTER 3: REGULATORY COMPLAINT LETTER

[__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

Regulatory Agencies (select one or more):

☐ Consumer Financial Protection Bureau (CFPB)
P.O. Box 4503, Iowa City, IA 52244
Online: consumerfinance.gov/complaint

☐ Office of the Comptroller of the Currency (OCC) (national banks)

☐ Federal Reserve Board (state-chartered Fed member banks)

☐ FDIC (state-chartered non-Fed-member banks)

☐ NCUA (credit unions)

☐ New York Department of Financial Services (DFS)
One State Street
New York, NY 10004
Online: dfs.ny.gov/consumers/file-complaint

☐ New York Attorney General — Consumer Frauds Bureau
28 Liberty Street
New York, NY 10005
Online: ag.ny.gov/complaint-forms

Re: Complaint Against [________________________________] for Violation of Federal and New York Consumer Protection Laws
Account Number ending in: [____]
Original Dispute Date: [__/__/____]

Dear Sir or Madam:

I am filing this complaint because [________________________________] has failed to comply with error resolution requirements under federal law and New York state law.

Summary of Dispute

On [__/__/____], I submitted a written billing error notice regarding a $[________________________________] transaction with [________________________________]. (Summarize.)

Federal Regulatory Violations

☐ Failed to acknowledge dispute within 30 days
☐ Failed to resolve within 2 billing cycles / 90 days
☐ Reported disputed amount as delinquent
☐ Failed to provide provisional credit within 10 business days
☐ Failed to complete investigation within 45/90 days
☐ Failed to provide written explanation
☐ Restricted or closed account in retaliation
☐ Other: [________________________________]

New York State Law Violations

☐ GBL § 349: The institution's failure to properly process this dispute constitutes a deceptive act or practice in the conduct of business
☐ GBL Art. 29-A (§ 512): The institution has attempted to impose liability beyond the statutory limit for unauthorized use
☐ GBL § 520-c: The institution failed to provide required credit card information disclosures
☐ DFS Regulations: The institution violated applicable DFS regulations governing consumer dispute resolution

Resolution Requested

1. Investigation of the financial institution
2. Order requiring compliance
3. Credit of $[________________________________]
4. Removal of adverse credit reporting
5. Enforcement action as appropriate

Enclosed Documents

☐ Original and follow-up dispute letters with certified mail receipts
☐ Bank's response(s)
☐ Account statements
☐ Supporting evidence
☐ Timeline of events

Sincerely,

Signature: ________________________________________

Printed Name: [________________________________]

Address: [________________________________]

Phone: [________________________________]

Email: [________________________________]

PART E: TIMELINE CHART — ALL CRITICAL DEADLINES

Credit Card (Reg Z)

DAY 0: Statement date showing billing error
|--- DAY 60: DEADLINE — Written dispute received by creditor
|--- After receipt: 30 days for acknowledgment
|--- 2 billing cycles (max 90 days): Resolution required
|--- During investigation: No delinquency reporting, no account restriction

Debit Card (Reg E)

DAY 0: Learn of loss/theft → 2 BUSINESS DAYS to limit liability to $50
DAY 0: Statement date → 60 DAYS to report error
After notice: 10 business days → investigation or provisional credit
45 days (90 for POS/new/foreign) → final investigation deadline

PART F: EVIDENCE ORGANIZATION CHECKLIST

Transaction Records

☐ Account statement(s) — highlighted
☐ Receipt or order confirmation
☐ Authorization/reference number

Merchant Communications

☐ Emails, chat logs, letters
☐ Phone call records
☐ Social media messages

Delivery / Service Evidence

☐ Tracking information
☐ Photos/videos of defective goods
☐ Service documentation

Return / Cancellation Evidence

☐ Return tracking and confirmation
☐ RMA documentation
☐ Cancellation confirmation

Fraud-Specific Evidence

☐ Police report
☐ FTC Identity Theft Report
☐ Card possession evidence

PART G: PRACTICE TIPS FOR NEW YORK CHARGEBACK DISPUTES

Leverage New York-Specific Protections

1. GBL § 349 private right of action. This is one of the most consumer-friendly statutes in the nation. No proof of intent is required — only that the practice was deceptive and caused injury. The $50 minimum damages plus treble damages up to $1,000 plus attorney fees makes even small claims economically viable.

2. DFS complaints. The New York DFS has broad authority over financial institutions. A DFS complaint can trigger a regulatory investigation and often produces faster results than direct negotiations.

3. New York Attorney General. The AG's Consumer Frauds Bureau actively investigates consumer complaints and can bring enforcement actions under GBL § 349 with broader remedial powers than private parties.

4. Small claims court. New York City small claims court handles matters up to $10,000 (District Courts in Long Island and $5,000 in City Courts outside NYC and Justice Courts). New York small claims courts are known for being consumer-friendly.

5. NYC-specific protections. New York City residents may also file complaints with the NYC Department of Consumer and Worker Protection (311 or dcwp.nyc.gov), which has its own enforcement authority over deceptive business practices.

General Best Practices

6. Act within 60 days. The period runs from transmission of the first statement reflecting the error, not the transaction date.
7. Use certified mail. Proof of delivery is essential for both credit card and debit card disputes.
8. Document thoroughly. Keep a chronological log of all actions taken.
9. File CFPB complaint. The CFPB tracks complaints and forwards them to the institution.
10. Consider multiple regulatory filings. File simultaneously with the CFPB and DFS for maximum leverage.

SOURCES AND REFERENCES

• Fair Credit Billing Act, 15 U.S.C. § 1666: https://www.law.cornell.edu/uscode/text/15/1666
• Electronic Fund Transfer Act, 15 U.S.C. § 1693f: https://www.law.cornell.edu/uscode/text/15/1693f
• Regulation Z, 12 C.F.R. § 1026.13: https://www.consumerfinance.gov/rules-policy/regulations/1026/13/
• Regulation E, 12 C.F.R. § 1005.11: https://www.consumerfinance.gov/rules-policy/regulations/1005/11/
• N.Y. GBL Art. 29-A (§ 511-520-e): https://www.nysenate.gov/legislation/laws/GBS/A29-A
• N.Y. GBL § 349: https://www.nysenate.gov/legislation/laws/GBS/349
• N.Y. GBL § 512: https://newyork.public.law/laws/n.y._general_business_law_section_512
• N.Y. DFS — Consumer Complaints: https://www.dfs.ny.gov/consumers/file-complaint
• N.Y. Attorney General — Consumer Complaints: https://ag.ny.gov/complaint-forms
• DFS Industry Letter on GBL Amendments: https://www.dfs.ny.gov/industry_guidance/industry_letters/il20131025_recent_amend_nygbl_cc_info_notices
• CFPB — File a Complaint: https://www.consumerfinance.gov/complaint/

This template is provided for informational purposes only and does not constitute legal advice. New York provides extensive consumer protections that supplement federal chargeback rights. Consult a qualified attorney licensed in New York for advice specific to your situation.