I went on a holiday to Turkey last month. The hotel asked for my credit card details to block a certain amount of money to cover my expenses, if any.
The amount blocked was $2,000 as it was a four-star hotel and I stayed there for a fortnight.
Upon check out, the receptionist assured me that the blocked amount would be refunded to my bank account in a week’s time. There were no additional charges that needed to be paid to cover my stay.
However, the hotel has not refunded the amount and it was reflected on my credit card statement in the last billing cycle.
I have tried reaching out to the hotel, but am unable to get through to an employee who speaks English. Emails to their customer care department have also been unanswered.
I tried reaching out to my bank as well, but they asked me to contact the merchant to reverse the charges.
I don’t want to pay this amount as I did not spend it. But if I don’t pay, then I will incur interest for not paying the entire credit card bill. Please help me. KV, Abu Dhabi
Debt panellist 1: Steve Cronin, founder of DeadSimpleSaving.com
This amount is called an “incidentals deposit” and is a standard feature when checking in to a hotel.
When using a credit card, a “hold” is placed on your card for the deposit amount.
This means your card is not charged (even though you may receive an SMS notification that looks like a purchase), but the available balance on your card is reduced accordingly.
It’s much better to use a credit card for hotel deposits, as a debit card will actually take money out of your current account.
In your case, the hotel seems to have billed your card rather than blocking the deposit amount.
Hotels often make mistakes with billing. There are a few steps you can take, but you should also resign yourself to some frustration along the way.
Given $2,000 is not a trivial amount, I would first try to find a Turkish speaker to help you.
There are many in the UAE and they would probably help you for free, or you could even pay them a percentage of the disputed amount.
You may find the hotel isn’t being malicious or incompetent. You may also find that they have removed the hold or reversed the billing, but it hasn’t shown on your credit card account yet.
You should email them in Turkish and also try to call them, as time is of the essence.
If they refuse to co-operate, you can leave the hotel a negative review (in Turkish and English) on various review websites and social media pages, in the hope that the hotel contacts you and they change their mind.
You could also report them to the Turkish police, which should get their attention, but would be logistically difficult for you in reality.
There are a number of large companies in the payments chain that can potentially exert more pressure on the hotel than you can.
If you booked the hotel through a booking site or travel agent, you can complain to them — such sites can be quite helpful and usually back the individual over the hotel.
This is more true for international sites than for smaller, single-country ones.
Your card issuer (the bank) will want you to resolve this issue with the merchant first, but if you can prove they are not co-operating (not speaking English is not really evidence of this) then the bank may step in.
You can then claim the transaction is fraudulent and demand a chargeback.
Keep your original receipt for the chargeback and hotel bill on checkout so that you have evidence.
You would submit your initial complaint to your bank within 30 days of the charge date on your card statement, although it helps that you have flagged the problem already.
Debt panellist 2: Carol Glynn, founder of Conscious Finance Coaching
What a frustrating situation to find yourself in.
Having the charge reversed by the hotel is the easiest and fastest way to get your money back.
I would suggest persevering with the hotel. Do you have a Turkish-speaking friend who can translate your emails into Turkish for you?
It would also be helpful to have a Turkish speaker call the hotel on your behalf to explain the situation and request a refund.
Is the hotel part of an international chain? You could also escalate the issue to the hotel's international management team.
Keep your original receipt for the chargeback and hotel bill on checkout so that you have evidence
Steve Cronin,
founder of DeadSimpleSaving.com
If the hotel continues to ignore your request, you may need to raise a police case against the hotel as, unfortunately, the bank's processes tend to consider this a transaction approved by you.
I would suggest contacting your bank again and declaring the transaction as fraudulent and raising a complaint on this basis.
Check the customer service section of your bank's website for guidance on how to do this, relevant links or email addresses.
Keep a detailed record of all attempted communications with the hotel, receipts from your stay and any other relevant information relating to your interactions with the hotel.
If you cannot resolve the issue with either your bank or the hotel, you can raise a case with the UAE Central Bank.
You need to wait 30 calendar days after you raise a formal complaint with your bank before you can raise a case with the central bank.
Debt panellist 3: Felicity Glover, personal finance editor at 'The National'
I am sorry to hear that your holiday has left you with a frustrating financial issue to sort out.
Hotels typically put a “hold” on a guest's credit card to pay for incidentals, such as minibar charges, room service and potential damage to a room.
The time frame for the hold is based on how long you are staying and is usually lifted a day or two after checkout but this can take up to a week or so.
It is important to remember that when the hold is authorised, that money is no longer available to use while you are on holiday, so always ensure that you have included this charge in your spending budget.
From my research into your issue, it is possible that the hotel may be not the problem. Instead, the delay in lifting the hold could originate with the card issuer — in this case, either Visa or MasterCard.
It is worth checking with your bank if this scenario is possible and asking the agent to contact the card issuer to find out if this is the cause of the delay.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
COMPANY%20PROFILE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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MATCH INFO
Champions League quarter-final, first leg
Manchester United v Barcelona, Wednesday, 11pm (UAE)
Match on BeIN Sports
Tour de France
When: July 7-29
UAE Team Emirates:
Dan Martin, Alexander Kristoff, Darwin Atapuma, Marco Marcato, Kristijan Durasek, Oliviero Troia, Roberto Ferrari and Rory Sutherland
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Spain drain
CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
Details
Through Her Lens: The stories behind the photography of Eva Sereny
Forewords by Jacqueline Bisset and Charlotte Rampling, ACC Art Books
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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UAE currency: the story behind the money in your pockets
Jebel Ali results
2pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner: AF Al Moreeb, Antonio Fresu (jockey), Ernst Oertel (trainer)
2.30pm: Maiden (TB) Dh 60,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard
3pm: Handicap (TB) Dh 64,000 (D) 1,600m
Winner: One Vision, Connor Beasley, Ali Rashid Al Raihe
3.30pm: Conditions (TB) Dh 100,000 (D) 1,600m
Winner: Gabr, Sam Hitchcott, Doug Watson
4pm: Handicap (TB) Dh 96,000 (D) 1,800m
Winner: Just A Penny, Sam Hitchcock, Doug Watson
4.30pm: Maiden (TB) Dh 60,000 (D) 1,600m
Winner: Torno Subito, Sam Hitchcock, Doug Watson
5pm: Handicap (TB) Dh 76,000 (D) 1,950m
Winner: Untold Secret, Jose Santiago, Salem bin Ghadayer
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
'Ashkal'
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Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
