Debt Collection Letter Received for Credit Card Refund

davethebb

In January this year, we hired a car in Spain. We when returned home we noticed that our credit card had been debited £208 (No given reason but probably for fuel). We had already paid for fuel upfront via the booking agency. We raised a dispute with Santander and they agreed and returned our money after three months as the other side had not responded to their requests for supporting documentation.

Yesterday (4/11) we received a letter from a debt collection agency acting on behalf of the Spanish hire company saying that we owe them £208 and we have 14 days to pay. If payment is not received they will either pass it onto a field agent for collection at our property or they will engage an external solicitor.

Santander has said the case is closed but in any case, they are not able to assist as it is a civil matter.

Is this right that they are allowed to do this and any advice on what we should do?

Nasqueron

A chargeback simply takes the money back from the other side's account, it doesn't remove any debt obligations

If you paid for the fuel then you should send the evidence but you should check that it was for that, as opposed to say a speeding or parking ticket, damage etc

Whether they will be able to enforce the debt is a different matter

davethebb

Thank you, Nasqueron. I have sent all the evidence to say that we prepaid for fuel, but the problem is the other side did not respond to Santander's request for information regarding the charge, so we do not know for certain what it is for. There was no damage to the car (evidenced by the return forms and checklist), and I doubt it was for speeding or parking ticket, etc, as it was used for only a handful of miles, and I am a careful driver (but you never know...).It just seems that the other side does not have to respond and then call the debt collectors in, and there is nothing I can do.

fatbelly

Is this a UK based DCA?

Even if it is, they are going to struggle with this.

You could send a prove-it letter or ignore. If it's a uk based DCA, I'd go with the prove-it.

born_again

This is how the car hire co's operate now. They do not dispute, simply go the legal route.

TBH, this is where many people go wrong in these cases especially with European car hire.

I aways advise that they need to take issues like this up with

https://www.ecrcs.com/

They make a binding decision on any disputes.

davethebb

Thank you Born Again. I have just looked at the ECRS website and it appears that they do not get involved in disputes where the credit card company have investigated. There it seems that there is no way out for me.

davethebb

Fatbelly, Yes it is a UK based DC company. I assume a prove it letter is asking for evidence - I have already drafted a letter requesting this. My concern is that they will take legal action and the costs will rise. Is there any specific wording I need to use to prevent them for further action etc.?

Voyager2002

davethebb said:

Fatbelly, Yes it is a UK based DC company. I assume a prove it letter is asking for evidence - I have already drafted a letter requesting this. My concern is that they will take legal action and the costs will rise. Is there any specific wording I need to use to prevent them for further action etc.?

They will not take legal action so long as it is clear that you are willing to pay anything that you genuinely owe (they would not be allowed to pass on legal costs to you unless they first explained what the debt was for and demonstrated that it was money that you owed). So simply send a standard 'prove it' letter.

fatbelly

Before starting a court clam they ( the debt owner, not the dca) must send a formal preaction letter with reply form and 30 day limit.

That gives you a further chance to ask to see their evidence before the claim is even issued. Or, of course, negotiate a settlement.

To start a court claim, they would need a uk base to their operations who could legally take this on, or it will be difficult for them

If they don't give up on this, try posting on debt free wannabe

retiredbanker1

If you do not pay or agree a settlement just be wary if you return to Spain.

I do not know how Spanish law works but they could put a note on their systems?

km1500

could you call the car hire company and ask what the £208 is for ?