Credit card trouble: Charging foul?

A 33-year-old marketing executive has been fighting a running battle with Citibank over Dh5 which she believes was unjustly charged to her credit card 10 months after the card was discontinued.

Radwa Abu Saif’s tiff with the bank dates back to October 2007 when she closed a credit card she used to guarantee a car rental.

Case file

Radwa leased a car from Dollar in July last year. On February 26, she returned the vehicle and paid all charges. Five months later, on July 3, she received a statement for Dh5, the amount Dollar charged her credit card for Salik. "I have disputed the transaction with my bank, not for the amount but out of principle," said Radwa, who believes charging her credit card after the contract ended is wrong.

"I expect to be contacted and sent an invoice should new charges appear, such as delayed fines or Salik toll charges. If the charge is legitimate, I will undoubtedly pay it.

"If they [bank] said: ‘Oops, sorry, it was a mistake’, that would have been the end of the story. Instead, they’ve given me a run-around, insulted my intelligence and gave me lies.

"I’ve been using credit cards for the last 16 years. Does this mean I’m tied to these cards for the rest of my life or that I could be charged for any future transaction on these cards for which I have given pre-approval?"

Companies reply

A Citibank spokesperson said Radwa’s pre-authorisation gave Dollar the right to bill her for such charges even after the car-rental contract is over. "These charges are not considered as fraudulent, but as late postings," the bank’s spokesperson said.

A Dollar spokesperson explained a clause in the rental agreement states the customer’s credit card can be charged for damages, traffic fines and Salik at a later date. "This is an industry practice," he said, adding it is rare that charges are made more than a year after the car is returned.