Not mine but this is actually what I did too.
I said I plan to charge back on my credit card. They threatened that if I did that, they can’t promise my account wouldnt be flagged.
I said “bet” and they removed the cancellation fee and cancelled the service.
Half true. They will refuse charge backs if you keep doing them. I’ve seen them be refused on customer orders before.
How can that comply with federal law that customers are not liable for fraudulent purchases on credit cards?
I would imagine that it’s exactly because of the word you used. Fraud.
If someone is going on a chargback spree it’s going to look fraudulent from the customers end. So their would likely need to be some kind of evidence or back and forth with the credit card company. Since they are now the middle man taking money from companies and putting it back in a lowly plebs pocket.
No idea, man. I’m just providing my experience with it from when I saw it happen all the time at work.