Can a Credit Card Be Charged after It's Cancelled?

Sex on 04/10/2016 - 18:21

I recently went overseas (NZ) and rented a car for the trip. At the time of hire I provided them my credit card details from which they would take the $3,500 excess if any damage happened to the car (None happened).

I am now back in Sydney and I am looking to cancel the credit card I used above as I have opened another.

However, I suspect that I may have a pending NZ speeding fine as I drove past a marked police car in Christchurch and noticed at that point that I was 10km over the speed limit.

As I understand it, if I get a fine, the rental company will charge the fine amount plus an admin fee to the credit card I provided previously.

What would happen if I closed this card now but end up getting the fine in a few weeks time? Can it be charged to the card if the card is already cancelled? And if so, will this be really bad for my credit rating?

Thanks for any advice!

Financial

Comments

  • PVA on 04/10/2016 - 18:36
    +4

    well dont cancel the card yet, and if you get a fine pay it.

    • [Deactivated] on 04/10/2016 - 18:44

      This.

      If you have outstanding money owing to a rental car company you'll be blocked from their entire global network.

      You'd be surprised how many rental car companies are owned and/or operated by one company.

      And when you return to New Zealand you might be arrested at the extreme end of the scale if you have outstanding fines.

      • dlf73 on 04/10/2016 - 19:13

        ….and you will never see the light of day again………

        The Police will send you a letter which will give info on what to do/how to pay.
        Check the NZ Police website for info and contact information if you want to proactively chase this up.
        http://www.police.govt.nz/
        and specifically for your issue:
        http://www.police.govt.nz/faq/rental-car-infringement-disput…
        Leave card active in case you do need to pay a fine, etc.

        And for your topic question, no, card cannot be billed if cancelled.

        • pjetson on 05/10/2016 - 10:06

          And for your topic question, no, card cannot be billed if cancelled

          Except when it does happen.

          I have personally had this happen with a long cancelled American Express card. A company I had dealings with was sold to another company, and somehow my account was re-activated and they charged my cancelled card. American Express apparently paid the company, then chased me, wanting to know why I had used a long cancelled card! I told them that I did no such thing and that it was their problem, not mine, if they paid out on it.

        • dlf73 on 05/10/2016 - 16:10
          +1

          @pjetson: good to know but surely that is a rare exception. On almost every other occasion would the biller not get failed transaction messages when trying to Bill a cancelled card?

        • gabbyu on 06/10/2016 - 04:43

          @pjetson:

          Many, many years ago, I had an AMEX card with auto-debit on my bank account. About 10 years after I closed my AMEX acct, I received a letter from AMEX demanding that I pay them my outstanding balance. Apparently, someone had used my card to buy airline tickets (twice within 2 weeks), but luckily (for me), I had also long closed the connected bank account. They threaten me with nasty letters, but I refused to budge. I was told then (by AMEX) that they never really cancel a card unless it was reported stolen. I've never looked at AMEX cards since.

    • Sex on 04/10/2016 - 21:02

      Thanks for the suggestion. Im nearing my annual fee payment for this credit card and no longer want to renew it as I have a new card, hence the question.

      • davidmwilliams on 05/10/2016 - 08:06

        Call the credit card company and tell them you are wanting to cancel. Chances are they will offer you a waiver of the annual fee if you give them another chance.

      • PVA on 05/10/2016 - 11:17

        tell them you are cancelling but that you think there maybe another charge coming.

  • bargainslut on 04/10/2016 - 19:16

    Best pay the fine in this situation. Government debt is very difficult to avoid. private debt is another animal.

    • dlf73 on 04/10/2016 - 19:35
      +3

      OP does not know if there is a fine………..

      • bargainslut on 04/10/2016 - 20:05

        Touche.

        Perhaps just pay the fine separate (If there is a fine,time will tell).

        Any private debt can be eroded using basic methods.

        • Sex on 04/10/2016 - 21:03

          Hopefully I'll be able to give them details of my new CC or something I guess!

        • bargainslut on 04/10/2016 - 22:19

          @johndoe1: This is just fine, it's your credit card after all.

      • PVA on 04/10/2016 - 20:12

        thats why I suggested just not cancel the card for a while.

      • Sex on 04/10/2016 - 20:58

        Yeah, I was over the limit at the time I looked at my speedometer but the car did not stop me. I do not know if they were monitoring traffic in my direction or the other. I am happy to pay the fine if I was indeed deemed over.

  • Mad Max on 04/10/2016 - 20:47

    I thought the rental company would just provide your details to the police. The police will then send you the fine at your address here in Australia. Not sure how they could enforce the fine and make you pay if you are not planning to go back to NZ at some stage in the future.

    • [Deactivated] on 04/10/2016 - 20:51

      They can't.
      The rental company usually charges an administration fee though.

  • StewBalls on 04/10/2016 - 20:58
    +1

    Simple answer, absolutely yes they can…how do I know this, my old Visa card got a bill just recently…according to my bank it's a caveat that Visa places on our financial institutions, they have no power to deny the payment within a set period.

    • Sex on 04/10/2016 - 21:05

      Interesting, that would be the best outcome for me (if I could cancel card but still pay the fine if I get one). You didn't incur additional fees from the bank for the post-cancellation charge did you? Cheers.

      • StewBalls on 04/10/2016 - 21:08
        +1

        My bank didn't charge me any additional fees thankfully, but check with yours just in case…

        The funny thing was, because the account was technically closed I couldn't transfer funds to pay the debt, I had to call card services & they had to generate me a special one-off Bpay number to clear the account…as my 2.5yo would currently say, that's bizarre! ;)

  • Jalif on 05/10/2016 - 07:21

    Yes they can charge that card after it is closed.

    • dlf73 on 05/10/2016 - 16:18
      +1

      I believe this is not possible. Can you provide somoe proof that they can. They can try to charge the card but it will fail…..

      • StewBalls on 05/10/2016 - 22:16

        Just ask your bank bro, they will set you straight…

      • Jalif on 07/10/2016 - 17:59
        +1

        Wrong wrong wrong.

        I've had charges and direct debits come off cards in the past.

        It may be different if the account is frozen due to fraud, but charges can definitely be made on a closed account, and you still have to pay them back.

  • JIMB0 on 05/10/2016 - 09:47

    Has the rental company got a pre authorisation on the card still?

    • Sex on 05/10/2016 - 10:10

      No, that amount has disappeared. I have nothing outstanding on the card either as I simply don't use it anymore.

  • Sarge2401 on 07/10/2016 - 18:25

    After someone - car rental company, hotel, other companies that use authorisations, have that auth they can then charge against it for the next 60 or 90 days - I can't remember exactly the time.

  • snook on 13/10/2016 - 15:00

    I have a cancelled citicard that pre-cancellation, had payments coming out automatically. Those payments are still going to that card number even though I have a new card.

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