Help! Cant transfer balance off card

RemotecUK · 31 January 2006 at 3:56PM

Hi,

<< Sorry missed the stoozing sub board in my eagerness to post - happy for a mod. to move this if required >>

I recently managed to secure £7000 interest free for 9 months from Lloyds TSB. I promptly transfered this onto a Sainsburys Bank credit card with the intention of a) getting a cheque off them or b) closing the account and getting the balance.

However - this now seems to have backfired on me. Basically Sainsburys Bank wont allow me to have the money myself. They say as it originally came from a credit card their only option is to transfer it back to where it came from! I asked them what would happen if I closed the account and they said the same would happen. The only option to get the money from the account is for them to transfer it back to Lloyds TSB!

Obviously this isnt convenient. Ive pointed out to them that its my money etc etc but they are very set in their decision. So now I need to some options to get the money off the Sainsburys card to where it can start earning some interest.

Any ideas on what I could do to get hold of the money?

Thanks in advance,

TCM.

YorkshireBoy · 31 January 2006 at 4:16PM

RemotecUK wrote:

Any ideas on what I could do to get hold of the money?

You may not have a say in what happens to 'your' money because, according to your T&C's...

7. Using your account
...<snip>...
7.6 You must not transfer funds from another credit or store card to your account that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money has been sent.

http://www.sainsburysbank.co.uk/credit_cards/cca_importantinfo_std_orp.shtml

RemotecUK · 31 January 2006 at 4:45PM

Yep an old case of "read the T&C's carefully" I think.
Ah well. At the end of the day nothing has been lost.

YorkshireBoy · 31 January 2006 at 5:22PM

Do you have an Egg Card, Egg Money, Mint, or any MBNA run card?

If so, there may be some options available there - providing you're still within your 6 week BT window with LTSB.

RemotecUK · 31 January 2006 at 5:25PM

I dont but I could always apply for one. The question is If I send the money back to LTSB then can I then retransfer it?
Also, how will having £7k unsecured on another credit card affect my application for another card?
Last question - I have an HSBC credit card - will they credit my bank account (also with HSBC) ?

Thanks for your help.

YorkshireBoy · 31 January 2006 at 6:06PM

RemotecUK wrote:

I dont but I could always apply for one. The question is If I send the money back to LTSB then can I then retransfer it?

Yes, but you'll only get it at 0% if you BT within the first 6 weeks.

RemotecUK wrote:

Also, how will having £7k unsecured on another credit card affect my application for another card?

Depends on lots of things, but working in your favour is the fact that it probably won't have been reported to the CRA's yet.

RemotecUK wrote:

Last question - I have an HSBC credit card - will they credit my bank account (also with HSBC) ?

Check their T&C's, but I doubt it - £7K is rather a large sum to hold as a positive balance.

grumbler · 31 January 2006 at 6:10PM

RemotecUK wrote:

I dont but I could always apply for one. The question is If I send the money back to LTSB then can I then retransfer it?

Why not? However, you have only 6 weeks of account opening to make another BT.

Also, how will having £7k unsecured on another credit card affect my application for another card?

I don't think that effect could be very serious if you don't have another huge debts.

Last question - I have an HSBC credit card - will they credit my bank account (also with HSBC) ?

Usually CC companies are reluctant to do this, although majority of them have not added the same clause as Sainsburys to T&C yet. You can try, but I wouldn't do this.
P.S. YB, we sing in unison :beer:

RemotecUK · 31 January 2006 at 6:17PM

Thanks all for the help.
Ive just spoken to HSBC and outlined the exact plan to them as it happens. I thought well Ive got nothing to loose so I asked them quite clearly "if my account is in balance can I put that balance into my current account?" and they said "yes". I then asked them "so it doenst matter where it came from?" and they said "no". So, I then said "Scenario: Tomorrow my credit card is currently in credit by £x amount. Can I then put that amount into my current account no problem" and they said "yes". Thats going to be easier in the short term than applying for a new card.

Ill let you know how it goes.

YorkshireBoy · 31 January 2006 at 6:54PM

RemotecUK wrote:

So, I then said "Scenario: Tomorrow my credit card is currently in credit by £x amount.

Did you say '£x amount', or did you say '£7K'?

RemotecUK wrote:

Ill let you know how it goes.

Please do. I'm sure a lot of people on here will be interested in the outcome.

grumbler wrote:

P.S. YB, we sing in unison

You were slightly 'out of tune' grumbler - 4 minutes 'out of tune' to be precise.

gem4 · 31 January 2006 at 7:23PM

RemotecUK wrote:

<snip>
So, I then said "Scenario: Tomorrow my credit card is currently in credit by £x amount. Can I then put that amount into my current account no problem" and they said "yes". Thats going to be easier in the short term than applying for a new card.

Ill let you know how it goes.

My HSBC cc T&Cs item 5e says "You should not make payments that place the account in credit. If you do we may still restrict the use of the card and the account to the amount of your credit limit"

This could prove interesting as it appears to contradict what you were told on the phone.

Milarky · 1 February 2006 at 12:05AM

I may be wrong, but I believe that HSBC treat 'cash advances' like balance transfers and you may be getting a cash advance instead of a BT - there would be an uncapped fee with that. The good news is that such a cash advance would be 'interest free' for up to 56 days - so that you could cash advance from the HSBC credit card then balance transfer from Lloyds to the HSBC within eight weeks (LTSB permitting) and simply repay what you owe them without further interest.

Interest-free period:
Up to 56 days on Purchases and Cash Advances if you pay your whole alance, including any Balance Transfers, in full and on time.

Charges:
Cash Advances 2% handling fee, (includes cash withdrawals, Credit Card Cheque minimum £2 transactions, bill payments and purchases of foreign currency and travellers cheques) Foreign Exchange 2.75% of the amount of non-sterling transactions

http://www.hsbc.co.uk/1/PA_1_4_24P/content/uk/pdfs/en/summarybox_hsbc_credit_card.pdf

Surely the thing to do is get a balance transfer from Sainsburys first - by writing yourself a cheque and then ask LTSB for a BT to repay this a.s.a.p which Sainsburys have to accept at that stage.

Get the money sent back to LTSB, write a cheque with Sainsburys and pay them off from LTSB. If your Sainsbury limit won't cover it in one go break it down into two or more transfers ... but in the correct order to avoid putting your Sainsburys card into a credit balance.

Help! Cant transfer balance off card

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