How do you get overpayment back which cc company erroneously took!

batbubble

Hi not sure if anyone out there has experience of this so here goes. Bought Euros at airport on 13/11 but made a mistake and paid for them on credit card not debit card - my fault it was early morning and I was obviously still asleep! Not until it came up on the machine that it was a cash advance did it sink in. When I returned the same day rang the cc company, Citibank, and explained. Was told that I could pay off the whole amount that day including two days interest (for the cash) which is how long it would take to reach the account. I did this but explained also that there was a DD to come out on the following Monday 16/11 as a normal monthly full settlement payment. I was told not to worry that they would not take this payment as it had been included in the payment I was now mkaing. Todady I accessed my bank statement and they not only took the full payment but also the DD payment. Now they won't pay it back and it has left my bank account short so I can't pay my mortgage. They have told me to tell my bank to recall the DD but my bank won't do this as it is not their fault and I am not in dispute with the cc company. Any one had such an experience and what did you do. I need this repaid pdq.

dtaylor84

Insist your bank return the DD. Take a copy of the direct debit guarantee. See the financial ombudsman's page here: http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm

Note that it specifically says the bank must grant a full and immediate refund of the amount if the bank or the originator makes an error. Also you are in dispute with the credit card company.

batbubble

Thanks dtaylor 84. I have already spoken with the Financial Ombudsman and they have put a complaint in but it allows the cc company up to 8 weeks to resolve it and I can't wait that long. I agree with you that I am in dispute with the cc company but the bank, HSBC, doesn't appear to see it that way. I have since posting this received a call from Citibank and they have now offered the following: They pay back to my account the Credit Card amount (ie whole statement amount) I paid on 13/11. When it arrives in my bank after appx. 2 days I then ring them again and pay off the whole outstanding amount on the statement as of that date, and crucially as I see it they have also said that any interest will be refunded/reversed so that I don't accrue any charges. Now if this actually works it will be a miracle but I don't have much faith.

izools

It may be the wording you are using with your bank.

Advise them that you are requesting an "Indemnity Claim" on the direct debit.

Advise that you are covered as part of the direct debit guarantee to request a full and immediate refund for incorrect direct debits by making said Indemnity Claim through the bank, and if they refuse to do it still TBH I'd move bank quicker than you can say "Bankers". Even Santander know how to make an indemnity claim on a Direct Debit getting the funds back in 24~48 hours!!

batbubble

Hi - yes I did ask the bank for this originally but they said they can't issue an indemnity claim due to the circumstances as stated before. I would need to go back to the cc company and claim the refund from them hence my agreement to their offer.

LeeSouthEast

Er, your bank are wrong. Yes, you can issue an indemnity claim for any reason where there has been an error.

Which institution is it? Name and shame.

noh

Does your credit card account now have a positive balance?

As far as I can see what you wanted to happen has happened.
You paid last months outstanding balance in full by DD as you normally do.

You made an additional payment to cover the cash advance and a couple of days interest.

Or are you saying that the additional payment was equal to your DD plus the cash advance and interest?

Whatever the CC company said to you on the phone on the 13th there was no way they could have stopped a DD due on the 16th as that is only 1 working day notice. 5 days is the minimum usually required.

noh

LeeSouthEast wrote: »

Er, your bank are wrong. Yes, you can issue an indemnity claim for any reason where there has been an error.

Which institution is it? Name and shame.

True but in this case there has not been an error in the DD

The OP was notified on their CC bill of the amount to be taken on the 16th November by DD. That amount has been taken.

The error was made by the customer services rep in saying (1 working day before collection date) that the DD wouldn't be collected.

If the CC is now in credit they (the credit card company) should pay the excess back.
If it is not in credit they won't.

LeeSouthEast

Sorry, that's what I get for speed-reading. I stand corrected.

batbubble

Er yes. After these shenanigans my credit card was in credit to the tune of £950.00. Ouch eh??

LeeSouthEast

Couple of options then:

1. Ask for the CC co to refund your card to your bank. This will take 2-3 banking days.
2. Can your mortgage co take the payment by credit card?
3. Put your normal monthly spending on the card this month?

Probably some more I'm not seeing.