NEED HELP!!! Problem with Barclaycard!

grosik84

Barclaycard has authorised a transaction for £300 even though my limit was used. I wasn't even aware of it untill I checked my account and realised I was over my limit by £300!!!! I am now in a lot of trouble as my debt is growing every day because of the interest and charges.
Can they do it? Can they just authorise transactions without my knowledge? Can I write a complaint and try to claim that money back?
Any help and advice is greatly appeciated.

Better_Off_1983

Have you spoke to Barclaycard and enquired what the transaction is?

Sometimes, the merchant has a a 'floor limit' and they will process the payment and the card company can sometimes authorise it.

grosik84

I have spoken to them as soon as I found out. They told me it went to a car renting company in Italy (where I rented a car a month before). They basicly charged me for fixing the car which they shouldn've done as it wasn't my fault (I am in the middle of dealling with the company in Italy).

Janie4Now

Hi, OP. I had exactly this problem a few years back. I'm afraid I got nowhere - apparently there is a clause in the rental contract which allows these rental companies to charge your card for any repairs. By signing the agreement, you agree that they can charge your Barclaycard with these charges. And apparently, in these circumstances, Barclaycard will authorise the payment even if it takes you over your limit. Like you, we didn't agree with the rental company but we could do nothing to stop them.

Infuriating. You have my sympathy.

Conrad2

Hi grosik,

Have you accepted that the repairs were required?

Have you been sent an invoice for the repairs, or any proof that they have been carried out?

Were you given any notice of when payment was due?

If any of the above have not been satisfied, you may be able to claim that the hire firm has acquired the money improperly. If you can demonstrate the situation to the ccc, there is no reason why they shouldn't seek to recover the money. If the payment was completely out of the blue, you should have no problem. If you were aware that it was coming, you are on less firm ground.

I am not convinced that the ccc is obliged to make a payment in this situation, as the payment is a matter of contract between you and the hirer, not the hirer and the credit card company. If you were in a supermarket paying for goods and the bill exceeded your credit limit, they would not have allowed it, so why have they done it here?

Yes, if you have funds, the hire firm are within their rights to seek payment, though they should have made you aware as above.

If there is nothing in your T&Cs that stipulates that they can make discretionary payments that will exceed your agreed credit limit, then ask them to justify the reason why the payment was made.

Effectively, if you had a dispute, the ccc have removed your only leverage, and have done so in questionable circumstances. I think they will want to put the situation right.

Contact the ccc again, and make sure they are aware of the full circumstances of the payment and that it is in dispute. You may also want to put it in writing.

meer53

The payment was authorised at the time of hire. The cc issuer IS obliged to allow the payment to debit as the OP agreed to it when they agreed to the Car Hire companies T & C's. This is why Car Hire companies ask for card details before you take the car.

The OP should contact the company to discuss it further. The CC issuer have not done anything wrong.

Conrad2

meer53 wrote: »

The payment was authorised at the time of hire. The cc issuer IS obliged to allow the payment to debit as the OP agreed to it when they agreed to the Car Hire companies T & C's. This is why Car Hire companies ask for card details before you take the car.

The OP should contact the company to discuss it further. The CC issuer have not done anything wrong.

Hi Meer,

I agree with what you are saying, but there must be some justification before the payment is taken or the hire firm could just charge the hirer on a whim - which they can't.

Also, the CCC authorising a payment which takes a consumer so far over their credit limit seems peculiar, and I am only suggesting that the OP checks out justification.

If there are no funds, generally the CCC will not pay, so what are the special circumstances here. I would want to know.

chattychappy

You can never rely on a credit limit as a means of preventing a charge to the account. Technically it's often not possible and the T+Cs usually permit it anyway.

If you feel that the charge was outside the authority given, then you can try disputing it. Also, if the criteria is met, s75 makes the CC jointly liable for breach of contract/misrepresentation. If the charge was outside of what was agreed or, as you say, for repairs that you were not liable for then start a dispute with the CC on this basis.

Frankly, you are wasting your time if you go down the credit limit route.

meer53

Conrad2 wrote: »

Hi Meer,

I agree with what you are saying, but there must be some justification before the payment is taken or the hire firm could just charge the hirer on a whim - which they can't.

Also, the CCC authorising a payment which takes a consumer so far over their credit limit seems peculiar, and I am only suggesting that the OP checks out justification.

If there are no funds, generally the CCC will not pay, so what are the special circumstances here. I would want to know.

The car hire company can (in theory) debit the OP with as much as they like whenever they like, the authorisation taken at the time of hire covers it. So they can.

The OP doesnt need to speak to their CC issuer, they need to dispute this with the car hire company, they are the ones who have debited their account.

Car Hire companies and Hotels have this arrangement with Visa and Mastercard. If you read your terms and conditions when hiring a car there is usually a clause stating that you authorise them to claim any monies due after the car has been returned and a final audit has been done. This allows them to check for damage, refuelling etc and to charge accordingly.

As they already have authorisation, it doesn't matter whether there are available funds or not. People wrongly assume that if a card is at the limit, or they stop the card to try to stop a payment from debiting, then the payment won't go through. Card payments are guaranteed as far as a retailer is concerned once authorisation is obtained. If a retailer tries to process a payment without getting authorisation, and there are no funds available, then the payment should be declined.

Why do you think car hire companies and hotels ask for your card details up front ? Simply because they know that some people will leave the hotel without paying, or that some will return a hire car when the offices are closed in the hope of getting something for free.

The OP should speak to their card issuer to see if any further action can be taken, it depends on what the OP has been advised of by the hire company.

dalesrider

Conrad2 wrote: »

I agree with what you are saying, but there must be some justification before the payment is taken or the hire firm could just charge the hirer on a whim - which they can't.

Also, the CCC authorising a payment which takes a consumer so far over their credit limit seems peculiar, and I am only suggesting that the OP checks out justification.

If there are no funds, generally the CCC will not pay, so what are the special circumstances here. I would want to know.

OP. Should have recieved some notification from the hire co re the debit. If he has not. Then he needs to raise a dispute with barclaycard.

But as OP said they are in talks with the hire co. I have a feeling he knows what this relates too.
But I would be asking Barclaycard to place the item into dispute, which in effects freezes it. (not payable or incures intrest/charges)
Till this is resolved.

Hire co, hotels or any other retailer that takes your card details as security. As per their T/C has the right to take funds if they feel they have a right in cases of damage caused or fines incurred.

If the op has not recieved any notification about the charge (10 days they have) then there is a pre-compliance right to get the debit claimed back.

He really needs to talk to the disputes department about this as they will know exactly how to deal.

chanz4

me thinks the op does know, and was trying to get away with it.