Car hire deposit still held on your card: what to do if it is not released

Is it a hold or a charge?

Look at the transaction details in your banking app or statement:

• Hold, pre-authorisation or pending amount: it reduces the balance or credit you have available, but it is not a final payment. It can disappear without ever becoming a transaction.
• Charge or debit: the money has left your account or been added to your credit card balance. It appears with a transaction date and, often, a description from the company.

On a credit card it can show as less available credit. On a debit card, as a lower available balance. If you are not sure which it is, ask your bank exactly how the transaction is recorded.

What the law says about card holds

In the EU and the UK, the same rule applies to card payments where the exact amount is not known when you agree to them, such as a hire car deposit. It comes from article 75 of the EU Payment Services Directive and binds the bank that issued your card:

• Your bank may block funds only if you have agreed to the exact amount being blocked.
• Your bank must release the blocked funds without undue delay once it receives the exact amount of the transaction and, at the latest, immediately after it receives the payment order.

Which text applies depends on where your card was issued:

• Card from a Spanish bank: article 47 of Royal Decree-law 19/2018 on payment services.
• Card from a UK bank: regulation 78 of the Payment Services Regulations 2017.
• Card from an Irish bank: regulation 99 of the European Union (Payment Services) Regulations 2018.
• Card from another EU country: that country's version of the same article 75.
• Card issued elsewhere, for example in the US: these rules do not apply; ask your card issuer how it handles holds.

That is why there are usually two steps: the hire company reports that it is cancelling the hold or sets the final amount, and your bank releases the rest. If the company reports nothing, in practice the block can stay until it lapses under your bank's own timescales, so it is worth asking both to clear it up.

What to do if the hold is not released

1. Check the transaction and note the amount, the date and the merchant name.
2. Write to the hire company with your contract number and return date. Ask it to confirm whether it has released the hold or charged any amount, and for what.
3. Take the reply to your bank and ask it to release the funds or to tell you what it still needs to do so.
4. If the company has charged you something, ask for the breakdown and dispute the charge. The deposit guide explains how.
5. If your bank does not sort it out, make a formal complaint to the bank first. If it does not resolve it, you can escalate:
   • Spanish bank: the Bank of Spain.
   • UK bank: the Financial Ombudsman Service. For payment services complaints, the bank has 15 days to send its final response, rather than the usual 8 weeks.
   • Irish bank: the Financial Services and Pensions Ombudsman, once the bank has sent its final response or has not dealt with your complaint within 40 working days.

Common questions about card holds

How long does it take for a hire car hold to be released?

It depends on when the hire company reports the final amount and on your bank's timescales. There is no single period for every company and card. If it has taken longer than your contract says, ask the company for written confirmation.

The company says it has released the hold, but I can still see the amount blocked.

Ask the company for a reference or proof of the cancellation and give it to your bank. With that information, the bank can find the transaction.

Can I claim interest or compensation for the block?

It depends on the case, on any loss you can prove and on the route you take. Do not take it for granted. Focus first on getting the money released.