Holidaymakers who return from holiday to discover that they have been overcharged for hotel or car hire could be able to claim back some or all of the cost of the purchase when new EU legislation comes into force this Autumn.

The changes would be applied to transactions where the final amount is not specified at the point of payment, and covers situations like car hire or hotel room payments where a deposit is required.

The new terms that come into effect from November 1 state that anyone who receives a credit card bill that ‘exceeds the amount the payer could reasonably have expected in all the circumstances’ has eight weeks in which seek a full refund from their provider. N

Potentially, a claim could be made where a car hirer returns a car without a full tank but later discovers that the credit card had been charged more than perceived as necessary for the additional fuel.

Cardholders could be forgiven for thinking this is too good to be true, as banks and credit card providers will be able to interpret the rules the rules in their own way, and must make a refund or justify a refusal within 10 days of the claim.

In the event of a claim being refused, the cardholder can take the matter to the Financial Ombudsman.

The body which regulates payment companies, the UK Payments Administration said: “We are going to have to see how it pans out. But the fact that an answer has to be reached in 10 days means it is quite a quick process, which is good for the consumer.

“Banks are going to be a bit nervous about it but they will have to justify any refusal. It will be interesting to see how they handle it.”

Thanks to The Times for the above quotes.  For more information on this article visit their website.