New recourse
The law offers a recourse, the chargeback, allowing you to ask the company with whose credit card you paid for your purchase to credit your account in the amount of your purchase and all related costs in an incidental contract. This recourse consists in crediting your account for the amount owing to the merchant, within 60 days of the latter's refusal to refund your money.
You must make a written request to your credit card company and include the following information:
- credit card holder's name;
- card number of expiry date;
- merchant's name;
- date of the transaction (signing of contract);
- amount charged to credit card;
- detailed description of goods or services purchased;
- reason for cancelling the purchase;
- date the purchase was cancelled and means used to transmit cancellation notice.
The credit card company must send you a notice of receipt within 30 days of receiving your request. It must credit all of the sums owing to your account, i.e. cancel the fees charged to your credit card account for the transaction plus those for any incidental contract, by the closest deadline:
- no later than 90 days after receiving the request;
- or within a period representing two account statements issued by the credit card company.
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Chargeback
This recourse, called chargeback, refers to reversing the charges on a consumer's credit card in the amount owing to a merchant who defaulted on refunding a purchase.
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Incidental contract
An incidental contract is a contract for the purchase of items needed for the activities provided for in a prime contract. You need not purchase these items from this merchant. If you do, the merchant must give you a written contract if the cost of the purchase exceeds $100. In addition to your name and contact information and that of the merchant, the incidental contract must contain specific information: date and time of signing, description of material purchased, cash price of each item and applicable taxes, total amount payable and any other mention prescribed by regulation.