credit card - car hire - the amount the rental company can claim?

woodentom

i posted a thread recently on the car rental scetion of the forum as i have a query following a recent car hire in Iceland


https://forums.moneysavingexpert.com/discussion/comment/76149071#Comment_76149071


This was a hypothetical scenario but I was told that if i write off a car going "off roading" then this is not covered at all by any insurance and the rental company would cliam the entire amount of the car from my credit card company.



i assumed he meant to the limit of my card but i was told that they can recover the entire amount so that could be £40/£50K and then i would have to deal with my credit card company


i would like to know if this is even possible? will a credit card company provide beyond the credit card limit?


not that i want to test this scenario but i would like some advice


thanks

[Deleted User]

Yes, transactions can be processed which take you beyond your credit limit. Both online, and more commonly, off line.

However, a 40k transaction, assuming your limit isn't nearing that, would almost certainly be rejected.

If it was rejected, you'd need to make alternative means to settle the bill.

System

I always get standalone, supplementary insurance for car hire. An annual policy that is so robust I could drive the car off a cliff "for a laugh" and still be fully covered.

It also give you that ability to reject all up-selling of collision damage waivers when you hire the car. Saving white a bit of money.

eco_warrior

woodentom wrote: »

i posted a thread recently on the car rental scetion of the forum as i have a query following a recent car hire in Iceland


https://forums.moneysavingexpert.com/discussion/comment/76149071#Comment_76149071


This was a hypothetical scenario but I was told that if i write off a car going "off roading" then this is not covered at all by any insurance and the rental company would cliam the entire amount of the car from my credit card company.



i assumed he meant to the limit of my card but i was told that they can recover the entire amount so that could be £40/£50K and then i would have to deal with my credit card company


i would like to know if this is even possible? will a credit card company provide beyond the credit card limit?


not that i want to test this scenario but i would like some advice


thanks

What you’ve been told is nonsense to be honest.

Before considering the amount - any charge for damage (including a write off) must be approved by the cardholder (you) when you are presented with the bill. If the car hire company charges you without your explicit authorisation at this point then your card provider can/will refund you by doing a chargeback.

The merchant can chase you for the money via other means though, debt agencies or court etc.

But even if your hire contract states you are liable they aren’t allowed to just charge your credit card (or Visa debit either). Hence the chargeback for this very situation.

If you consider the amount. Car hire companies will ring fence a payment when you pick up the car, it will vary but let’s say a common amount is 500/1000 euros. They cannot charge you more than what’s been pre-authorised, or again, this is a chargeback.

And as the previous post said it would likely be declined by you card provider due to insufficient funds, if it was more than your available spend or indeed your limit.

I’ve dealt with thousands of car hire dispute relating to damage and they will generally play out in two ways.

1. The customer agrees to pay the damage when presented with the bill. That’s basically the end of the story.

2. The customer doesn’t agree to pay the damage but is charged anyway. The bank will charge it back if requested. The customer will probably be chased for the money, the cost of the damage will determine how robust the chasing is.

In regards to complete write offs - I’ve seen a few cases and the amount charged to the customers card was just the full ring-fenced amount and no more.