How exactly does that work? I thought the credit card company was the final arbiter of whether the charge was valid or not? If they decide it's not, can a collection agency really enter the fray?
Credit card chargebacks don't trump contract law. If you establish a contract with someone to pay X and you don't pay X then they could either sue you or send a collections agency after you...
For most businesses if a customer conducts a chargeback even if they believe they're in the "right" they rarely pursue it due to bad PR and that the cost to pursue it may be more than the amount they're pursuing.
For most businesses if a customer conducts a chargeback even if they believe they're in the "right" they rarely pursue it due to bad PR and that the cost to pursue it may be more than the amount they're pursuing.