Forced to use Credit Card, Can I do anything?

imhayley

This is a bit complicated, bear with me.

I was a hiring a car for more than 10 days, because of the length of hire the hire car company will charge my credit card the total of the hire deposit which is 1100 Euros. They will NOT pre-authorise it, they will charge me and then refund me if there is no damage. I will have to pay interest on this due to the fact it's a charge on a Credit Card.

I booked the car through Argus Hire and the T&Cs are in there. The hire is with firefly; I contacted them directly as advised by ArgusHire and asked if I could pay the 1100 hire with my debit card as this way I would not be charged interest by my bank. I was told yes.

When I got to the desk they told me you can only pay by debit card when you take out their insurance (£220) goodness know why that it the rule given the company would already have the total despite in their hands by the time you return the car? But I'd already arranged my own third party insurance so didn't want to pay another £200 on top so I decided to suck it up and pay by credit card but realised I had brought my husbands card by accident!

So they wouldn't give me the car. Argus Care Hire also wont refund me for the car hire, because the T&Cs say you need a credit card. My husband can fly out here and bring my credit card on Sunday, 5 days after the hire should of started, but they wont give me the car then either.

How is it fair for them to insist I pay by credit card when either way they will be receiving cash. To reiterate, I'd totally get it if it was a pre auth. But surely it's an unfair contract clause to insist on credit card in this case?

Other than "get over it" does anyone else have any tips? Thanks.:mad:

[Deleted User]

They're allowed to accept -or not accept - any forms of payment they want. It's not an unfair contract clause.

A pre paid credit card might achieve what you're looking for.

Alternatively, use the cash in your current account to pay off the credit card so as to avoid interest.

imhayley

My credit card company takes 3-5 days for payments to clear, I did think of that, it's what I was going to do if Firefly said they didn't take debit cards. Although I wasn't sure what would happen when they refunded me, I guess I'd be 1100 in credit?!

They don't accept pre paid cards either sadly.

[Deleted User]

You'd either spend the credit balance for your normal spending, or ask for a refund of the balance.

imhayley

I never really spend anything on this credit card, I mainly have it to hire bloody cars. I guess I'm screwed then and will have to get a new hire with a different company once my husband flies out with my card.

jonesMUFCforever

imhayley wrote: »

I never really spend anything on this credit card, I mainly have it to hire bloody cars. I guess I'm screwed then and will have to get a new hire with a different company once my husband flies out with my card.

It might be just me; but I would have taken the card with me even if I did not think I would be spending on it -- just in case!

easy

But ... the interest doesn't start to get charged on a credit card the moment you make the transaction !
As long as the balance is paid off before the due date no interest is charged.
Obviously,how long you have to pay that depends on what date you hire the vehicle in relation to when your card bill is made up, but ...
as an example, we use a credit card to pay for all our household shopping.
Our bill arrives at the beginning of each month (around the 3rd I think). it includes all transactions up to the 25th of previous month. It is paid in full by direct debit on the 22nd of the month, so we pay no interest at all on transactions that are up to 8 weeks old. we would only pay interest if we didn't clear the balance of the previous month on the 22nd.

So go ahead, let them charge the credit card, and make sure you pay it off by the due date.

p.s. If you really don't believe me, then make doubly sure by making a payment to your credit card the same day that you hire the car. Then there can't possibly be any interest on that transaction.

imhayley

jonesMUFCforever wrote: »

It might be just me; but I would have taken the card with me even if I did not think I would be spending on it -- just in case!

I accidentally picked up my husbands

imhayley

easy wrote: »

But ... the interest doesn't start to get charged on a credit card the moment you make the transaction !
As long as the balance is paid off before the due date no interest is charged.
Obviously,how long you have to pay that depends on what date you hire the vehicle in relation to when your card bill is made up, but ...
as an example, we use a credit card to pay for all our household shopping.
Our bill arrives at the beginning of each month (around the 3rd I think). it includes all transactions up to the 25th of previous month. It is paid in full by direct debit on the 22nd of the month, so we pay no interest at all on transactions that are up to 8 weeks old. we would only pay interest if we didn't clear the balance of the previous month on the 22nd.

So go ahead, let them charge the credit card, and make sure you pay it off by the due date.

p.s. If you really don't believe me, then make doubly sure by making a payment to your credit card the same day that you hire the car. Then there can't possibly be any interest on that transaction.

Oh, i did not know that! I thought you were charged straight away! Saved this hassle next time! Is it just cash transactions you'd pay for right away?

eDicky

imhayley wrote: »

I will have to pay interest on this due to the fact it's a charge on a Credit Card.

Your credit card should have an interest-free period of about seven weeks - surely you will have either paid it off or returned the car and been refunded by then.

easy

imhayley wrote: »

Oh, i did not know that! I thought you were charged straight away! Saved this hassle next time! Is it just cash transactions you'd pay for right away?

yes that is correct, Cash withdrawals on a credit card start to accrue interest immediately, but "ordinary spending" - as in this case - doesn't.