Customer files a dispute on an unauthorized transaction. We contact merchant who verifies that consumer has an active account, and verifies name, email, telephone number, etc. that matches our customer. We send a letter closing the dispute, citing the information we received from the merchant and include the date the subscription was started noting the previous small charges to the consumer's account.

Customer contacts us a few days later stating the merchant tried to send a credit to his account but we rejected the credit. We reviewed all attempted transactions on the closed card and see attempted debits by other merchants, but no credit attempts. I know that once a dispute is closed, a customer cannot reassert the same error. Would this be a new error? Do I now have a new dispute under 1005.11(a)(ii)?

A claim of a missing credit would be new claim, but if you have reviewed your records and determined you never received it, that is pretty much the end of it. If it is not there - it is not there:

5. No EFT agreement. When there is no agreement between the institution and the third party for the type of EFT involved, the financial institution must review any relevant information within the institution's own records for the particular account to resolve the consumer's claim. The extent of the investigation required may vary depending on the facts and circumstances. However, a financial institution may not limit its investigation solely to the payment instructions where additional information within its own records pertaining to the particular account in question could help to resolve a consumer's claim.

Thank you very much rlcarey! I have a slew of these, so I think it is a new merchant tactic to get the customer off the phone.