AMEX - Advice Please?

Shiny_Windows

Hi

My first post here and loooking to see if anyone has any advice / opinions on the following situation.

Ive been stoozing for years but not done any for a while as most card companies charge around 3% fee on any cash advance. However I recently came across a couple of cards which offerered a long enough interest free period to make it worth while (Tesco and Virgin) so I applied for the cards.

Before making any balance transfers I asked American express, with whom I already hold a credit card, if there would be any problem with paying a positive balance on my card to my current bank account and received a web based message from them to say that there wouldn't. All I would have to do would be to send them a message asking them to transfer the balance to my bank account and the transaction would be completed within 5 working days.

I obtained the new credit cards and completed the balance transfers and contacted American Express to get them to transfer the positive balances to my bank account. I received a message back next day to say that the request had been sent to the back ofive team and the money would be in my bank account within the next 5 working days. Nothing subsequently happened and when I rang to check I was told that due to compliance rules they had to have sight of a statement confirming the source of any payments over £1000 in order to send the money to me. I faxed copies of the Tesco and Virgin statements to them showing the transactions and thus the origins of the money and they then refused to make the payment, saying that the money could only go back to the original source. Obviously this is no good as I would than be no further forward having paid the bal transfer fees.

I have written to them to explain that I expect them to honour their original statement that it would be no problem to transfer any positive balance to my bank account but as yet have not had a positive reply.

I find it unacceptable that they are effectively holding my money, not paying me any interest on it and are refusing to pay it back to me in a previously agreed manner. I intend to pursue them for the money, interest and costs using the financial ombudsman and, if necessary through the courts.

Is there anything else I can do?

YorkshireBoy

First of all, Virgin, being a super balance transfer card, would have paid the money directly into your current account, and at 0% interest, had you asked them to. Whilst you're kicking yourself, I'll continue...

When you asked Amex about positive balances, maybe you weren't 'specific' and they thought you meant a purchase refund to the card? Or then again, maybe you said "I'll be sending you several £1,000's from two other cards. Will it be OK for you to route this on to my current account for me without you having to investigate for money laundering activities?"

Many cards' T&C's specifically forbid the creation of positive balances. Halifax is one of them. Do Amex have a similar condition?

I don't think a complaint (whether to Amex or the FOS) will solve anything, and if you push it they'll just send the money back from whence it came. In fact, I think they'll do this automatically now anyway. Hopefully they won't charge you a fee (for incurring them time & trouble) for doing so.

If you want to hone your stoozing skills, there's a guide on this website...

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards

There's also a complete website devoted to the subject at...

www.stoozing.com

Shiny_Windows

Thanks,

Yes I now know that Virgin would have paid money direct with the balance transfer cheques but for a variety of complex reasons, the balance transfer was set up before I obtained the cheques. I have kicked myself for this many times.

I assumed that Amex would transfer the money back to my bank account as other credit card companies have done exactly that in the past, before balance transfer offering credit cards started using balance transfer cheques.

I did not specifically state where the positive balance would come from when asking Amex if they could refund a positive balance, equally when they wrote that they could, they did not attatch any qualifying conditions to their statement.

Paul_Herring

I find it unacceptable that they are effectively holding my money,

They have offered to send it back to where it came from. This is not holding onto your money, 'effectively' or otherwise.

not paying me any interest on it

It's a credit card, not a current/savings account.

and are refusing to pay it back to me in a previously agreed manner.

Amex cannot be used as a mule, and any impression they gave is likely due to you not asking the right questions. Their interpretation of 'a positive balance' is probably limited to pounds to the tens of pounds.

Thousands of pounds, for Amex, probably falls into money laundering amounts, and they are not required to refund that sort of amount anywhere you like.

YorkshireBoy

Shiny_Windows wrote: »

Yes I now know that Virgin would have paid money direct with the balance transfer cheques...

For future reference*, cheques are not necessary with virtually all MBNA run cards.

You can either ask customer services or carry out the transfer online yourself from your secure area.

Either way, the money is generally in your current account in 3-5 days.


* Once (if?) Amex return the Virgin money, then you could make an SBT for a further 2.98% fee. You'll still lose money overall, but not as much. At the moment you're 3% down on Virgin. If you can generate 5% net from the second SBT you'll only be 1% net down overall (in a years time). The 3% Tesco fee is lost forever I fear.

Shiny_Windows

I guess you are probably right that Ive cocked this one up.

What would be the options, I wonder, if having closed both the Virgin and the Tesco accounts, I were to inform Amex that I wished to close my account with them. What would happen to the money then?

Paul_Herring

Shiny_Windows wrote: »

What would be the options, I wonder, if having closed both the Virgin and the Tesco accounts, I were to inform Amex that I wished to close my account with them. What would happen to the money then?

1) In order to close the Virgin and Tesco accounts you would first have to repay any money owed (which, unless you are stoozing other cards, is currently in your Amex account.)(

2) Amex would likely still return the money to Virgin and Tesco (regardless of the 'closed' status, they still remain somewhat open in that they /can/ be reopened if necessary - witness the people complaining about CPAs reopening their closed accounts on here) and you'd have to argue with Virgin and Tesco to get your money back.

bungalowbill

Just another point about BT to Amex. If the BT happens to occur mid-way through your payment month, and it doesn't pay the balance in full, they will charge you interest from that day.

This happened to me as I had 'spare' money on a BT and decided to direct it to my Amex card as I knew it was a big bill that month. The BT arrived half way through, and I paid the outstanding amount as usual. It was only when the statement came I noticed I'd been charged interest. When I phoned to check, they said any payment received into an account would be classed as the payment for that month, and even though the balance was paid by the due date, interest was still charged.

It took a couple of phonecalls, but in the end they did agree to refund the charges. Lesson learned, won't do that again