Raw Deal: Just as well I’m an accountant... Tourist spots mystery credit card charge as firm goes bust

Jennifer Hughes with her golden retriever, Henry at home in East Calder after returning from her trip to Florida (right)

Accountant Jennifer Hughes instinctively knew that something didn’t quite add up when she checked her credit card statement.

She couldn’t understand why almost £600 had been taken from her credit card by a car hire firm in the US, months after her return from holidaying in Florida.

Jennifer had booked a September break for herself and two family members in Orlando last year. She paid £3,748 for a Thomas Cook package including return flights from Glasgow, accommodation at the Rosen Centre Hotel on International Drive and two weeks’ car hire.

“The holiday went well and even though Thomas Cook went bust after we returned to Scotland, while we were away we got all of the services that I had paid for,” said Jennifer, 33, from East Calder, West Lothian.

“I picked the car up in Florida from Alamo Rent a Car. When I dropped it off at the end of the holiday I was given a receipt confirming that the vehicle had been brought back in good condition and that there was nothing further to pay.”

So Jennifer was stunned when, three months later, Alamo whipped nearly £600 from her account without warning.

“I was later told by Alamo that they had not been paid by Thomas Cook because the airline had gone into administration, and they were quite within their rights to charge me again for the car hire,” said Jennifer. “I was outraged. This would mean having to pay twice.”

Despite contacting Alamo repeatedly, her pleas for a refund were declined.

“I was told I’d have to try to claim the charge back through the ATOL compensation scheme, which is dealing with refunds caused by the collapse of Thomas Cook. But ATOL advised me that car hire was typically not covered by their scheme. I felt that this was a grey area. A lot of customers might not be aware that a car hire company could charge the customer if a tour operator went into liquidation.”

Jennifer then worked with her credit card provider HSBC to try to resolve the issue as a disputed transaction.

“I couldn’t believe it when I was told that Alamo were indeed within their rights to charge me as I had received the service, so the bank couldn’t do a chargeback payment to my card.”

Raw Deal contacted Alamo in Orlando on Jennifer’s behalf and asked the company to investigate. Alamo’s UK partner, Enterprise, responded and, although the company insisted it was within its rights to charge her, it agreed to refund her the full amount.

Enterprise said: “It is our aim to always deliver the highest levels of service to our customers and we apologise to Ms Hughes for any confusion caused.

“We had not received payment from Thomas Cook for the hire of the vehicle before they went into liquidation. In such circumstances the customer is billed directly, and they then claim this payment back via ATOL. In this case Ms Hughes says ATOL advised her they were unable to help. We also note that Mrs Hughes made numerous calls to Alamo and the situation was not resolved.

“Therefore, as a gesture of goodwill we will arrange to refund the entire amount we have charged Mrs Hughes.”

Jennifer was grateful to Raw Deal for helping resolve what had become a stressful issue. She said: “Thank you so much. It was a lot of money and I knew The Sunday Post was my last option, having already tried credit card provider and Alamo to no avail.”