I paid $2,000 to a merchant last year. The merchant failed to reasonably deliver on their contract. I asked the merchant for a full refund, no go. I filed a chargeback against Citibank. It was denied - they cited it had been more than 6 months since the payment, although service from the merchant hadn't yet been completed. (Aside - don't use Citibank!) I took the merchant and Citibank to small claims court, both named as defendants. Neither showed up to defend. My claim got dismissed against Citibank but upheld against the merchant, who was ordered to repay $2,000 plus my costs.
The merchant has filed an appeal, still pending. On the billed card, I still owe Citibank about $10,000. I see little prospect of ever getting the money out of the merchant, even if I win the appeal. What are the pros and cons of stopping payments on my credit card? I've been through this kind of situation before (although it was in England, I'm now in Kentucky). Before when I stopped payments on the card, the bank pressured the merchant to eventually make a refund but holding out like that did serious damage to my credit. Can I expect a similar outcome in Kentucky? Or will interest on my card simply mount and it be likely I'll just end up having to pay that as well? Do I have any better options?