Debit Card chargeback for holiday cottage deposit

sunderj

Hi, apologies if this is in wrong section, as it relates to a debit card, not a credit card, but not sure where else to post.

We paid a refundable deposit (£200 for damages etc) for a holiday cottage rental on our debit card. After the holiday, the lettor will not return the deposit or respond to any communication. We tried to claim a refund through the bank 'chargeback' process, but they say that as the lettor will not communicate with them either, there is nothing they can do.

Is there any point in pressing this with the bank any further? Or is our only option the small claims court?

grumbler

I think your bank are fobbing you off.
I am no expert, but as far as I know chargeback works differently. Your bank takes money from the lettor's bank. Then the 'lettor' must communicate with their bank to prove that the chargeback was wrong and to claim the money back: Chargeback Protection for debit card purchases

It's worth noting most bank staff don't really know about this procedure, so you may need to explain it to them.

LOL

dalesrider

sunderj wrote: »

Hi, apologies if this is in wrong section, as it relates to a debit card, not a credit card, but not sure where else to post.

We paid a refundable deposit (£200 for damages etc) for a holiday cottage rental on our debit card. After the holiday, the lettor will not return the deposit or respond to any communication. We tried to claim a refund through the bank 'chargeback' process, but they say that as the lettor will not communicate with them either, there is nothing they can do.

Is there any point in pressing this with the bank any further? Or is our only option the small claims court?

You bank do not talk to the lettor, any contact will be via Visa and their merchant bank.

TBH. As someone who deals with disputes. This is one of the harder one's to deal with.
As such there is not a chargeback that cover this situation. But there is a pre compliance option.
What you are going to have to prove to your bank is that the lettor has shown intent to refund, but not refunded.
To do this you need to prove the deposit is refundable.

You will have to do this via T/C and any other paperwork you have.
You really need to talk to your banks disputes department and then ask for a referal to one of their tech reps. Who have a lot more insight into the Visa/mastercard regs.

Did you pay any part of this rental on a credit card ?

System

Be aware that chargebacks usually have a time limit - IIRC 120 days from the date of the problem/transaction for your bank to initiate it.

Possibly could go as a failed refund (but you'd need evidence of refund) or significantly not as described (i.e. they took your deposit with no intent of refunding)

sunderj

Thanks for the replies.

Yes, it was the lettors bank that did not respond. Seems a flaw in the system, just don't respond & nothing can be done.

We complained within the 120 days, but now elapsed as took over a month to get no response.

Will see if Banks disputes department can help: not entirely sure what a 'pre-compliance option' is. T&C's are quite clear, the deposit should be refunded. We paid the rental on Credit Card & deposit by debit card. Wish we had done both by credit now :-(

dalesrider

sunderj wrote: »

Thanks for the replies.

Yes, it was the lettors bank that did not respond. Seems a flaw in the system, just don't respond & nothing can be done.

We complained within the 120 days, but now elapsed as took over a month to get no response.

Will see if Banks disputes department can help: not entirely sure what a 'pre-compliance option' is. T&C's are quite clear, the deposit should be refunded. We paid the rental on Credit Card & deposit by debit card. Wish we had done both by credit now :-(

Well that fact that the other parties bank did not respond. means you win the chargeback....

If you have paid ANY of it and the total price was over £100 go to your credit card provider and explain the situation and waht has happened so far. If they cannot do anything further on the CC chargeback wise (not a option) then there is section 75 avaiable.

bris

dalesrider wrote: »

Well that fact that the other parties bank did not respond. means you win the chargeback....

If you have paid ANY of it and the total price was over £100 go to your credit card provider and explain the situation and waht has happened so far. If they cannot do anything further on the CC chargeback wise (not a option) then there is section 75 avaiable.

Its a debit card, S75 doesn't apply.

grumbler

bris wrote: »

Its a debit card, S75 doesn't apply.

sunderj wrote: »

...We paid the rental on Credit Card & deposit by debit card.

........................

meer53

They paid for the rental by CC, so S75 will apply. S75 covers the total cost of the purchase.

dalesrider

bris...

Note this by the OP #5

sunderj wrote: »

We paid the rental on Credit Card & deposit by debit card. Wish we had done both by credit now :-(

Credit card usage = S75 cover...

Although that does not mean that a refund will be coming soon. The OP will have to prove their case with T/C etc.

new_owner

Why not make a claim through the small claims court?

Its easy to do online. You need to make sure that you have written (recorded) to the person highlighting your claim and stating that if they dont refund in te next 7 days you will go through the small claims to recover etc.

The chances are they will refund + 8% + court costs just before it goes to court.