Cahoot Credit card showing a "reserve" balance

duncan303

Hi all
I have looked for any posts on this but cannot find anything.

I had a balance of zero on my credit card and chose to place a sheilas wheels insurance policy payment against it. The policy amount was £152.35. upon checking my balance Cahoot are showing a balance of £304.70. the transaction is listed only once in the statement list.

upon contacting Cahoot they tell me :

Thank you for contacting cahoot in Coventry.

If you look at your statement you will see only one transaction to that company.

Occasionally a company will 'reserve' two items on your account but if you check your statement only one amount has actually been collected. The reserved amount will fall off the account after three days if not collected and your available balance will return to how you expect it to be.

If you require any further assistance please contact us again.

Kind Regards,

has anybody else come across this,? I am concerned that if I choose to pay only the minimum at the end of the month I will be charged interest for sum the Balance actually shows including the three days the reserve charge was showing on my balance.

anybody any experience on this.



Many thanks

Duncan

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IWantToBeFree_2

The answer is in the email, there is only one transaction so that is the only transaction you will pay interest on.

Its quite a common practice

duncan303

Hi and thanks for your reply

IWantToBeFree wrote: »

The answer is in the email,

I felt the email did not contain an adequate answer, I apologise that I did not construct a clear post.

there is only one transaction so that is the only transaction you will pay interest on.

it did not actually say that, but I accept there may have been a presumtion.

to clarify:
I have a cahoot credit card account that detailed the following:
available balance: 3500.00 current balance 0.00
I authorised Sheilas wheels to take a single payment of 152.35 for an insurance policy.
Cahoot credit card account:
available balance 3195.30 current balance 304.70
I refer to interest being payable on the daily current balance, am i wrong?

Its quite a common practice

there are three issues here. the first being that I am being given a ficticiuos current balance that may or may not include these "reserve" amounts. The second that I could be being charged interest on a "reserve" balance for a few days equal to the sum of the original purchase, a sort of hiden commision. Third that I would be impossible for me to calculate current balance, if only some transactions carried this ghost "reserve" amount. If I have a dozen transactions in a day and only some attracted a "reseve" I would have great difficulty establishing which transaction had "not" attracted a "reserve".
Why should Sheilas Wheels want to charge me double the sum for a few days anyway? do we know why these common accountancy practices are taking place.
I decide to purchase a sofa for £3000 my current balance will show a current balance of £6000 way past the limit on the card.
I purchase an item for £1750.00 having an available balance of £3500.00 and I am unable to use the same card for four days?
Is this common practice nowadays.?