Hotel pre-authorisation legalities?
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shaun_from_Africa wrote: »A wake up call will probably be a fixed charge whereas a corkage fee may differ depending on the type of alcohol and the size of bottle.
If you were to take in a small bottle of your favourite beer it's unlikely that any corkage charge for this would be the same as if you had a bottle of champagne so this may well be why they don't specify any figure for this.0 -
A "pre-authorisation" isn't an authorisation, it's just a hold on the card (so that part of your credit limit is reserved for them). They still need you to authorise it, or if you don't and you dispute it should be easy to get a chargeback.
Have a read of the guides for merchants produced by the CC companies, they give a good idea what they're supposed to do. For instance Barclaycard recommend getting a signature on the final bill, ie your agreement to all charges, before leaving the hotel.
https://www.barclaycard.co.uk/business/help-and-support/accepting-payments/online-phone-mail#tabbox30 -
Thanks. Yup that part I understand, but I'm trying to find out what the law is regarding charging that non specified amount to your card. If it's not specified beforehand,
IMO, it would be a bit like when you rent a vehicle and use a credit or debit card as security.
If a parking ticket arrives with the car hire company they can take the money for this as well as an admin charge, or if you damage the vehicle and your insurance doesn't cover the damage, they can take the money from your card to cover the repairs and loss of use of that vehicle.
Even if the exact cost wasn't specified beforehand, when you make the booking for a hotel or vehicle hire, there will be something in the T&C's stating that you agree to pay whatever costs are due and for something such as a corkage fee, I would say that it's the customer's responsibility to find out what these charges will be before incurring them.
I can imagine that the credit card company would only get involved if you dispute the charges by denying that you actually incurred them or stating that you think they are massively larger than they should be.
There are probably millions of credit card charges like this made around the world on a daily basis and I'm sure that if they were illegal then they wouldn't be in the T&C's of just about every hotel/motel and vehicle rental company going.0 -
A "pre-authorisation" isn't an authorisation, it's just a hold on the card (so that part of your credit limit is reserved for them). They still need you to authorise it, or if you don't and you dispute it should be easy to get a chargeback.
Have a read of the guides for merchants produced by the CC companies, they give a good idea what they're supposed to do. For instance Barclaycard recommend getting a signature on the final bill, ie your agreement to all charges, before leaving the hotel.[/URL]0 -
sean yeah I mean that's the sort of thing I'd assume too, but I'm just trying to find some legal verification. I'm confident that any charges stated beforehand in the T&Cs would be chargeable, but it's just whether unspecified charges are legal or not, and whether giving the authorisation in the first place means giving them permission to subsequently charge the card, or whether they need permission a second time when the final amount is charged.
In terms of the actual break down of the charges, I was working under the assumption that if you did sign the final bill then you were authorising them to take payment so there generally wouldn't be any legal recourse, but my question is more pertaining to the hotel not getting that final signature and attempting to charge you anyway.0 -
If you are looking for a specific statute, then I fear you will not find one.
Two parties are free to agree any contract*.
When checking in to your mythical hotel you are entering into an agreement with them.
If you don't like the terms of the proposed agreement then you can either negotiate on those terms or go elsewhere.
*unless you are a consumer, when The Consumer Rights Act 2015 will apply.0 -
KeithP my question isn't about the T&Cs of the hotel. The one I'm staying in next month for example don't have any objectionable terms.
Also there are definitely laws covering this sort of thing, I'm just trying to find out how they apply to this situation. I'm actually surprised there isn't some more specific information online considering how many people stay in hotels and have their cards pre-authorised.0 -
Yes, they can charge you after you've left. You give them that authorisation when you hand over your card details when you check in. They should supply you with a breakdown of what they charge you. It's to stop folk furnishing their house with soft furnishings and bathroom items from their hotel. (and also to charge people for damage they may cause) Quite a sensible practice as far as i'm concerned.0
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meer53 thanks, but that's not quite the question. I'm wondering whether they have the legal right to take whatever they like off of that amount, or if this needs to be agreed to before you leave. For example as a silly example to illustrate my point, if they added a charge for £300 for a missing HB pencil - is that simply allowed because you already authorised the transaction, or would you be allowed to dispute this in a legal manner (ie not just through the hotel's complaints procedure).
I'm aware that they don't need a second authorisation if your "final bill" is within 15% of the pre-authorised amount, but I can't find out whether that pre-authorisation lets them take whatever they like for whatever reason.0 -
As you won't divulge a non silly example , and even though you say you stay in hotels a lot, all we can do is tell you what you SHOULDNT do in a hotel if you don't want to rack up a bill.
Do not use a hotels phone.
Do not use items from the mini bar.
Do not make noise, you could be accused and charged for spoiling the enjoyment of others.
Do not access the tv channels if you expect there will be an extra charge.
Do not take the bath robes , towels or even the slippers.
If there is any damage point it out straightaway.
Do not take glasses or ashtrays or remote controls or anything belonging to the hotel in case they charge you what you consider to be unreasonable amounts.0
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