CONTACTS 
0201 - MBNA - Maryland Bank, NA             800 441 9977
020101 - Wilmington, DE
020102 - Ms. Louisa Bell; Customer Advocate  =800 634 2927
020103 - Proof Department  =800 421 2110
0202 - Maryland Bank                        800 441 9977
020201 - Mr. Ken Vaidya; Supervisor Disputes =800 634 2927
020202 - Proof Department  =800 421 2110
0203 - CDW Computer Centers                 312 498 4426
020301 - Mr. Jerry Griffith; Account Manager =847 371 8827
020302 - jerrgri@cdw.com
020303 - Sales Department =800 800 4239

SUBJECTS
Omnibook 1450 650 MHz, 000502
RMA# 1797954; Return Omnibook 4150, Account 000502
CDW Fails Honor RMA Defective HP Notebook Computer on MBNA Account
MBNA Credit - 4195 89

0806 -    ..
0807 - Summary/Objective
0808 -
080801 - Follow up ref SDS 23 0000, ref SDS 22 0000.
080802 -
080803 - MBNA initially said they did not receive the Welch letter dated 000824
080804 - responding to MBNA's letter on 000808, received on 000818.  Later in
080805 - the call, MBNA admitted they did receive the letter dated 000824, but
080806 - interpreted it as not responding in the way they wanted, and as a
080807 - result sent a letter on 000905 incorrectly stating they did not get a
080808 - response to the 000808 letter.  MBNA has not submitted authority
080809 - showing it can charge a customer on a matter the customer has not
080810 - approved.  There is no authority showing a reasonable basis for the
080811 - 000821 deadline in MBNA's letter on 000808.  MBNA admits CDW has not
080812 - done the right thing in this matter.
080813 -
080814 - Sent a letter, ref DIT 1 0001, to MBNA with this record attached, that
080815 - notifies MBNA the charge by CDW of $4,449.60 is not approved, and was
080816 - never approved, ref SDS 0 EP6H, and that MBNA's letter on 000808 is
080817 - defective in not disclosing the basis for MBNA's deadline on 000821,
080818 - ref SDS 0 DR8J, for concealing the actual deadline of 000901,
080819 - ref SDS 0 QR4F, and for not giving the customer sufficient time to
080820 - respond. ref SDS 0 7S9L
080821 -
080822 - The critical issue is who controls charges to the customer's account:
080823 - the customer, or a vendor?
080824 -
080825 -    [On 000921 received call from MBNA saying CDW was prepared to
080826 -    perform its agreement upon a call from the customer to a number
080827 -    provided by MBNA;, ref SDS 24 4W92; a call to CDW indicated that
080828 -    MBNA provided incorrect information. ref SDS 24 ZH5H
080829 -
080830 -    [On 000926 MBNA enters new information in computer records, but
080831 -    does not record having received the Welch letter to Ken.
080832 -    ref SDS 25 MX3I
080833 -
080834 -    [On 001206 MBNA corrects improper charge by CDW. ref SDS 27 UJ6M
080835 -
080836 -
080837 -
080838 -
080839 -  ..
0809 -
0810 -
0811 - Discussion
0812 -
081201 - Talked to Elly.
081202 -
081203 - I explained having received a letter, ref DRP 4 0001, from MBNA dated
081204 - 000905 and received on 000912, which says MBNA did not receive our
081205 - letter dated 000824, ref DIP 3 0001, responding to MBNA letter,
081206 - ref DRP 2 0001, and reporting additional notice to CDW to pickup its
081207 - computer, and submitting a letter from CDW stating they are taking
081208 - care of it.
081209 -
081210 - I asked if MBNA has received our letter dated 000824, subsequent to
081211 - sending MBNA's letter on 000905?
081212 -
081213 - Elly said MBNA has not received a letter from Welch dated 000824.
081214 -
081215 - We reviewed failure of the mail in this case presents a significant
081216 - problem for a customer to comply with MBNA requests to return
081217 - defective goods, since it makes the customer partly responsible for
081218 - correcting vendor mistakes, and offers no means to establish
081219 - performance in the record, since a vendor can always claim they did
081220 - not receive goods, and they well might not receive the goods, as MBNA
081221 - did not receive the letter on 000824, for some reason, as reported in
081222 - Louise's letter on 000905, and confirmed by Elly today.
081223 -
081224 - Since the goods are defective, the vendor should bear the risk of
081225 - delivery; however, in this case MBNA is holding its customer
081226 - accountable for correcting vendor mistakes.  Moreover, the agreement
081227 - between CDW and Welch granted CDW permission to effect a charge on our
081228 - MBNA account only provided the vendor delivered serviceable goods,
081229 - free of defects.  Since CDW failed to perform this part of our
081230 - agreement, they were not authorized to charge our MBNA account, and so
081231 - their charge is contrary to our agreement, fraudulent and invalid.
081232 - ..
081233 - MBNA was notified on May 19, 2000 that CDW's charge was not
081234 - approved by Welch. ref SDS 17 4952  This notice was confirmed in
081235 - writing, ref DIP 2 0001, on 000525. ref SDS 18 0001  Since the account
081236 - belongs to Welch, charges must be authorized by Welch.  Since the
081237 - charge has been expressly rejected by Welch, MBNA must show authority
081238 - for acting in violation of customer instructions.
081239 -
081240 - Elly asked me to hold.
081241 -
081242 -
081243 -
0813 -
0814 -
0815 - 1439
0816 -
081601 - Elly came back on line after about 20 minutes, and said MBNA believes
081602 - Federal Regulation Z requires a customer to ship defective goods to a
081603 - vendor, and, if the customer does not do this, then MBNA is required
081604 - to charge the customer for the vendor's failure to correct its
081605 - mistakes.
081606 -
081607 - I asked for the MBNA policy and/or procedure that supports this
081608 - interpretation?
081609 -
081610 - Elly said she is not allowed to tell the customer the basis for
081611 - charges to the customer, other than to cite regulation Z.
081612 -
081613 - I thanked Elly for doing a good job, and asked to speak to a
081614 - supervisor.
081615 - ..
081616 - Talked to Ken Vaidya.
081617 -
081618 - Ken said he is a supervisor in the Disputes Area.
081619 -
081620 - Ken advised he is familiar with the dispute between Welch and CDW, so
081621 - we did not spend time reviewing the record.
081622 -
081623 - Ken advised that his instructions from MBNA management, policy,
081624 - procedure and precedent is that if a vendor refuses to pick up
081625 - defective goods after having issued an RMA, then the customer must pay
081626 - for the defective goods.
081627 -
081628 - Like Elly, Ken  cited Federal Regulation Z as permitting the vendor to
081629 - collect payment for defective goods by refusing to arrange
081630 - transportation.
081631 -
081632 - Ken said he has reviewed the Welch file and feels the vendor has not
081633 - done the right thing in this case.  He plans to have Kim Matteson call
081634 - CDW and encourage them to pick up the defective goods.
081635 - ..
081636 - I mentioned the problem discussed with Elly, above, ref SDS 0
081637 - 4W92, that, even, if we ship the defective goods to the vendor, there
081638 - is no guarantee it will be handled properly, but will likely get lost
081639 - in the system, as occurred with the letter to MBNA on 000824.
081640 -
081641 - Ken said that MBNA actually did receive our letter dated 000824,
081642 - ref DIP 3 0001, so it was not lost in the system.
081643 -
081644 -      [On 000927 Lorraine Wright and Jenelle said that MBNA's records
081645 -      do not show either a record of the call today, nor recipt of the
081646 -      Welch letter sent today. ref SDS 26 793O
081647 -
081648 -      [On 001206 MBNA corrects improper charge by CDW. ref SDS 27 UJ6M
081649 -
081650 - I expressed suprise based on the discussion with Elly, who said MBNA
081651 - did not receive our letter dated 000824, per above, ref SDS 0 4W92,
081652 - and this is consistent with MBNA's letter on 000905 which says...
081653 -
081654 -         We sent a letter to you requesting additional information on
081655 -         the item your are disputing, but we have not received a
081656 -         response. ref DRP 4 0001
081657 -
081658 - Ken explained that the MBNA letter on 000905 was intended to convey
081659 - that MBNA did not receive a response from Welch that aligns with
081660 - unspecified legal authority which MBNA interprets to require that
081661 - customers must return defective goods to a vendor and obtain written
081662 - proof of such return from the vendor, by a date certain, in order for
081663 - MBNA to follow instructions from the customer on approval of charges
081664 - claimed by a vendor.
081665 -
081666 - I asked why the MBNA letter on 000905 does not say that, and cite the
081667 - specific language it relies upon in a statute, regulation or policy
081668 - for failing to support the customer.
081669 -
081670 - Ken said that is what the letter was intended to convey.
081671 -
081672 - We reviewed the letter to MBNA on 000824 that expressly states it is
081673 - responding to MBNA's letter on 000808. ref DIP 3 0001
081674 -
081675 - Ken stated again that he has reviewed the Welch file on this dispute
081676 - with CDW and he feels the vendor has not done the right thing; yet,
081677 - he feels MBNA is required by law to charge the customer.
081678 - ..
081679 - I asked Ken for the authority he is using to conclude the
081680 - application of law in this case?
081681 -
081682 - Ken said it is regulation Z, and that he is an expert in applying this
081683 - regulation based on three (3) or (4) years in his present assignment;
081684 - however, he would not state the section of the regulation that MBNA is
081685 - relying upon for its action in this matter.  While we talked, I logged
081686 - onto the Internet, and found a section for Regulation Z.  There was
081687 - nothing evident that supported MBNA's interpretation.
081688 -
081689 - Ken recommended not relying on the Internet for a full presentation of
081690 - Regulation Z.
081691 -
081692 - I asked what would be the best course of action to expedite
081693 - resolution?
081694 -
081695 - I proposed taking the defective goods to the post office and mailing
081696 - it to the vendor.
081697 -
081698 - Ken said to get a return receipt and submit it to MBNA.
081699 -
081700 - Ken asked for the date in the letter from Kim Matteson on 000808?
081701 -
081702 - We reviewed the letter which says in part....
081703 -
081704 -      Thank you for the recent information you provided about the
081705 -      $4,449.60 charge(s) from CDW Computer Centers.  To help with our
081706 -      research of your inquiry, we also need a copy of the proof of
081707 -      return, signed by the merchant. ref DRP 2 0001
081708 -
081709 -      Because of the strict time limits for resolving billing disputes,
081710 -      it is important that you respond by August 21, 2000; otherwise,
081711 -      this inquiry will be considered closed.  The requested material
081712 -      should be mailed to P.O. Box 15026, Wilimington, DE 19850-50266.
081713 -      An envelop is enclosed for your convenience. You may also fax it
081714 -      to 302 457 8007. ref DRP 2 WQ5O
081715 -
081716 - Ken said that based on Kim's letter setting a deadline of 000821, it
081717 - is too late to return defective goods to the vendor.
081718 - ..
081719 - I asked why MBNA's letter does not state the finality of the
081720 - 000821 deadline, which Ken discloses today, including the grounds for
081721 - requiring a customer to submit "proof of return," in light of the
081722 - vendor having issued an RMA establishing defective goods are at issue
081723 - since, once goods are established to be defective, the burden shifts
081724 - from the customer to the vendor for arranging transportation. Further,
081725 - MBNA's request for information to help perform "research" in its
081726 - letter on 000808, ref DRP 2 0001, is misleading with respect to MBNA's
081727 - assertion today that there is an express legal requirement for action
081728 - within a specified period.  "Research" is inherently a continuing
081729 - function, that implies ongoing notice for a research task.  Merely
081730 - asserting a deadline without showing a factual basis does not meet
081731 - MBNA's burden of notice to the customer.
081732 - ..
081733 - We reviewed the record showing that Kim's letter on 000808 was
081734 - not received until 000818, 10 days later. ref SDS 21 0001  This was
081735 - only 3 days from the 000821 deadline in MBNA's letter.  Since 000818
081736 - was a Friday, MBNA failed to provide sufficient time for the customer
081737 - to respond.
081738 - ..
081739 - Ken said the actual deadline for returning the defective goods
081740 - to CDW was 000901, not 000821, as set out in MBNA's letter on 000808.
081741 - ref DRP 2 WQ5O
081742 -
081743 - He said MBNA incorrectly told Welch that 000821 was the deadline in
081744 - order to encourage early attention before the 000901 deadline.
081745 -
081746 - I asked Ken if we could submit information by email to avoid further
081747 - deadline conflicts?
081748 -
081749 - Ken said MBNA does not accept email from customers.
081750 -
081751 - We reviewed the record showing that MBNA readily accepts email notices
081752 - from vendors claiming entitlement to charge MBNA customers, yet is
081753 - unwilling to extend to customers the opportunity to present timely
081754 - information to MBNA on approval of such claims.
081755 -
081756 - We further reviewed MBNA's failure to submit information to support
081757 - its claim that customers are liable for fixing vendor mistakes, in
081758 - combination with MBNA's incorrect notification that Welch was required
081759 - to submit information by 000821, 10 days prior to the actual deadline,
081760 - denied Welch the opportunity to investigate MBNA's claim and take
081761 - appropriate action in time.
081762 - ..
081763 - Ken noted Welch's interpretation of the record is incorrect.
081764 -
081765 - He feels MBNA is not required to disclose the basis for MBNA action,
081766 - so that customers can make an informed and timely decision on payments
081767 - for defective goods.  He said the customer should discover the basis
081768 - of MBNA's credit practices, independently, rather than depend on MBNA
081769 - for assistance.
081770 -
081771 - Ken noted that MBNA told Welch on several occasions that regulations
081772 - require the customer to pay for vendor mistakes.
081773 -
081774 - We reviewed the need for customers to have a reasonable basis to act.
081775 - Just as MBNA requires proof that the customer has mailed goods to a
081776 - vendor, the customer requires proof that charges MBNA levies on the
081777 - customer's account are properly justified.  Vague references to broad
081778 - regulations does not discharge MBNA's duty of notice to the customer.
081779 - ..
081780 - I affirmed the notice in our letter to MBNA on 000525 that the
081781 - charge by CDW of $4,449.60 is not approved, ref DIP 2 0001, and that
081782 - CDW did not have authority to obtain payment from Welch for defective
081783 - goods, per discussion early today with Elly. ref SDS 0 EP6H
081784 -
081785 - Ken said the matter is not concluded.
081786 -
081787 - He plans to have Kim Matteson, who wrote to us on 000808, ref SDS 21
081788 - 0001, contact CDW and encourage them to "do the right thing."
081789 -
081790 -      [On 000921 received call from Kim. ref SDS 24 4W92
081791 -
081792 -      [On 000927 received call from Lorraine Wright saying MBNA has
081793 -      arranged with CDW for return of defective merchandise.
081794 -      ref SDS 26 4J7I
081795 -
081796 -      [On 001206 MBNA corrects improper charge by CDW. ref SDS 27 UJ6M
081797 -
081798 - I asked if it would assist MBNA for Welch to ship the defective goods
081799 - to CDW, and get a return receipt, even though neither CDW nor MBNA has
081800 - submitted information showing Welch has a duty to correct CDW's
081801 - mistakes.
081802 -
081803 - Ken said not to ship the defective goods to CDW, until MBNA submits
081804 - notice on its efforts to encourage CDW to do the right thing.
081805 -
081806 -
081807 -  ..
0819 -
0820 -
0821 - 1734
0822 -
082201 - During a call today with CDW, Jerry Griffith. ext 78027, reviewed the
082202 - record on this matter and reported that CDW reports the goods were
082203 - defective, and issued an RMA, but failed to issue a call tag.  Gerry
082204 - further reported that CDW's record shows that someone at CDW withdrew
082205 - the RMA after it was issued.  He found no notice to the customer on
082206 - this action, and nothing showing a change in the determination that
082207 - goods are defective.  Jerry promised to follow up to expedite having
082208 - CDW pickup the defective goods.  He said that is CDW's policy.
082209 -
082210 -
082211 -
0823 -
0824 -
0825 - 1832 received letter from CDW
0826 -
082601 - Received ref DRT 1 0001 from Jerry confirming he has taken action to
082602 - resolve this matter.
082603 -
082604 -     [On 000921 tried to call CDW Customer Service. ref SDS 24 4W92
082605 -
082606 -
082607 -
082608 -
082609 -
082610 -