Refund on credit card

peak1

Hi,

At the beginning of the month I paid nearly £500 for a garden table and chairs set from B&Q using my Capital One credit card.

To cut a long story short, we have now received 3 tables from B&Q, all of which have been faulty and have told B&Q to come and collect the lot and refund us. B&Q say the refund will take 3-5 working days after they get the furniture back. Normally this would not be a problem except my credit card statement is due today and the direct debit goes out at the beginning of May so there is a real risk the refund will arrive after the direct debit.

Obviously, I do not think that I should have to pay the £500 that is being refunded but how can I make sure this happens? Capital One are less than helpful - quel surprise! They say I can dispute the transaction until the refund arrives, but I would need to change the DD manually and there is no guarantee that I would be refunded the interest on the disputed amount.

Any suggestions?

lisyloo

Do you have any savings you can take this out of for a few days?

peak1

Hi Lisyloo,

I could but I would prefer not too as I lose the interest through no fault of my own.

I don't see why I should be at a disadvantage because B&Q can't deliver goods of satisfactory quality and take a long time to refund (it should be instant not a week after getting everything back). I also can't understand Capital One's position of still charging me interest even if B&Q refund the disputed transaction.

rb10

Interest on £500 for a week will be about twenty pence. Hardly enough to get worked up about.

Meepster

To be fair, it's not B&Q who take a long time to refund you. It takes a few days for the money to show back up against the credit card and this is the same for pretty much any company.

peak1

Meepster - The 3-5 days does not include the time for it to reach my account. This is the time B&Q quoted me for them to process the refund after receiving the goods back. The processing by the credit card company will add more time. :-(

rb10 - it's not just the interest, it's the hassle of organising it. I would have to lose access to this money for a month until my next credit card DD goes through as I cannot see Capital One transferring the funds back to my current account as soon as the refund arrives. I have already wasted 3 days sitting at home waiting for B&Q deliveries plus a trip to a store to try and organise a swap there (but their ones were even more damaged) along with countless phone calls and one more day of waiting for them to pick it all up again, I just want it over and the money back ASAP.

Paul_Herring

Since you were expecting to pay the £500 anyway, simply pay it and when the refund arrives on the card, either request C1 to return the funds to your bank, or simply spend on the CC as normal.

And I'm somewhat confused by your statement:

, but I would need to change the DD manually

It takes more time than you have to change a DD for the beginning of May. And how do you go about changing a DD? Did you mean SO?

peak1

Paul_Herring wrote: »

It takes more time than you have to change a DD for the beginning of May. And how do you go about changing a DD? Did you mean SO?

Paul,

I can change the DD online from paying the full amount to paying a specified amount. i.e. I could change it to pay the balance due less the amount due in a refund from B&Q. However I would still be liable for interest on this underpayment, even though it is the amount due to be refunded.

Paul_Herring

Given it takes at 3 working days for the recipient to start the DD process, and there are 3 working days before the beginning of May, you're cutting it fine.

Are you sure if, for example, you were to change it today, it would give sufficient time for that request to make it through C1's systems to the department that makes the DD requests in time for them to submit the (modified) DD request to your bank 3 working days prior to when it should be coming out of your account?

I'd still opt for paying the full bill and argue the point afterwards however, if only so you don't spend 1/2 a year trying to get interest/fees back of C1 for something that is the fault of B&Q.

As I said, it's not as if you weren't initially expecting to pay the full amount to begin with, and if your (other) monthly spending on the card is on the same order (or could be for a month) of the disputed amount, you aren't really losing that much when they refund the money.

If you don't normally spend on the card, or you can't shift £500 quid's worth of spending onto it next month, then get C1 to refund the surplus into your account.

lisyloo

I understand what you are saying on a point of principle.
If you are that bothered about the interest (which as already pointed out is very low), then I'd still pay it off (to avoid higher charges) and then write B&Q a complaint letter afterwards.
They may send you £10 or £20 as a goodwill gesture.

Personally I think I would have better things to do and get on with my life.
Assuming an interest rate of 3% tax free, then it's 29p per week.

But if you want to make a point or do it for altruistic reason, then write the letter, it will bring you some closure.
Even if they do nothing they will still have to pay someone to read your letter.

peak1

Thanks Lisyloo and Paul.

I think you're right and there does not seem to be a way to have the transaction put on hold until the refund arrives.

Though it's the last time I try and buy anything furniture related from B&Q. Tried to buy a kitchen from them 2 years ago when we were having a house extension done and they couldn't even be bothered to show up despite 3 separate appointments. Too bad we wanted to refit the bathrooms over this coming year as well, guess someone else will get the business now.