Balance transfer problems-Advice requested

dfh

Hi,
I am a newbie to this forum so please be patient with me ! I am having a problem with a balance transfer and would welcome your advice on how to proceed.

I had an outstanding balance of 2500 on a Halifax card which I wanted to transfer across to a 0 percent card.I applied for a virgin card and when I didn't hear anything after 3 weeks I assumed that I had been declined.I then applied for a first direct card which was accepted and the balance transferred across.I received a letter a week later saying my virgin card had been accepted and the balance was being transferred across.I rang to cancel but they said that the process had been initiated and could not be stopped.
Thus I ended up with a positive balance of 2500 on my halifax card.I then asked halifax to close the account and refund me the positive balance.They were happy to close my account but then turned around and said they could not refund the balance.So I said can you re-activate the card so I can use it untill the positive balance is used up? They have said no they cant and I have to apply for a new account.
I was wondering if any of you have had a similar experience or might be able to advise me on what to do next?
Thanks for your help.

Moggles_2

I had an outstanding balance of £2500 on a Halifax card which I wanted to transfer across to a 0 percent card. I applied for a Virgin card and when I didn't hear anything after 3 weeks I assumed that I had been declined.

That was a dangerous assumption to have made. Why didn't you ring Virgin and enquire?

I then applied for a First Direct card which was accepted and the balance transferred across. I received a letter a week later saying my Virgin card had been accepted and the balance was being transferred across.

With most credit cards, you either complete the balance transfer request section during the application process or wait until the card arrives.

IMO, it's best to wait until the activation call and request your BT over the phone (Most lenders, including Virgin, have a dedicated, Freephone number for this.) That way you keep your options open, avoid unwanted partial transfers, paying the same card twice (as has happened here) and you retain some control over what happens when. Virgin is an efficient operation, but the frequency of slip-ups that crop up on this board has convinced me it's safer to wait. If something goes wrong, BTs are not easy to reverse and, in attempting this, you could incur two BT fees. This is just my opinion of course.

Moggles_2

I rang to cancel but they said that the process had been initiated and could not be stopped.

It sounds as though the payment had already been credited to your Halifax account, so Virgin could not recall it.

I ended up with a positive balance of £2500 on my Halifax card. I then asked Halifax to close the account and refund me the positive balance. They were happy to close my account, but then turned around and said they could not refund the balance.

This situation is certainly not unique. The outcome depends on the lender involved and their interpretation of anti-money laundering regulations. With Halifax, the Ts & Cs specifically prohibit payments/balance transfers that place the account in credit.

7.6 You must not make payments or 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.

From feedback here, the Halifax always insists on returning the surplus funds to the new card provider(s). This should have been explained to you.

Moggles_2

So I said can you re-activate the card so I can use it until the positive balance is used up? They have said no they can't.

I don't know whether this is any consolation, but even had you not asked for your account to be closed, Halifax would still not have allowed you to take this risk.

Section 75 wouldn't apply if you spent from a positive balance, because technically it's not credit. Also, if your card got stolen, you wouldn't be covered for fraudulent transactions.

I have to apply for a new account. I was wondering if any of you have had a similar experience or might be able to advise me on what to do next?

Are you certain the account has been closed down, even though it's in credit? Has Halifax returned the surplus funds to Virgin?

dfh

I had a reply from first direct to sat they could not reverse the balance transfer but I could ask halifax to take the funds off first direct.I rang halifax and they have said they can do that.They have asked me for my credit card number and the first direct account no and sort code.I must say I have been impressed with the customer services.Hopefully things should get sorted out now.I have learnt my lesson though.I am paying this off in the next 12 months and no credit cards for me untill the end of this recession !