Is this legal or fair

ididnotknow

I have a credit balance (£6000) on my credit card (funded by a balance transfer from another credit card). I now want to access the cash, so called my credit card company and asked that they transfer these funds to my bank account; they have refused to transfer the funds to my bank account. They are only willing to send the monies to another credit card (with a 3% balance transfer fee) or suggest that I could withdraw monies via an ATM – however they will charge me a cash advance fee for each ATM transaction – This seems unfair as they are not advancing me any cash as my account is in credit .
Grateful for any thoughts & counsel

YorkshireBoy

And the credit card is...?

ididnotknow

Hi It's Santander

YorkshireBoy

From your T&Cs...

16.7 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.

https://applyonline.santander.co.uk/OnlineAppsWebCC/static/agreementtnc_organic.pdf

Your only option is to try closing the account, and hope they return the funds to you...and not the other card provider.

All in all I think you've learned a valuable lesson here...familiarise yourself with the T&Cs.

chattychappy

It is a bit dodgy to talk about fairness when you have deliberately breached the T+Cs, presumably because you wanted to achieve the effect of a BT from another card to your current account by pushing a BT through your Santander account.

That said, they do now have the funds - they didn't reject them or return them. I believe you are entitled to have the money returned to you. In the absence of a provision to charge you for this return, then I think you are entitled to have the money sent to you in full, less any reasonable costs they have incurred as a result of your breach.

Yes, they could charge you for the transfer to another CC or ATM withdrawals as this is provided for in the T+Cs, but obviously that's not what you are asking for.

I would suggest a written complaint if you get nowhere on the phone.

jonesMUFCforever

I agree they should return the money to you BUT they should do it in only one way - return it to the card it came from! - Simples!

chattychappy

They have to do something.

One of the reasons for this standard prohibition on credit balances is that it takes the activity into deposit taking which has its own regulatory regime.

The safest option for the CC is to return the money where it came from, if that is possible. If not, then they should satisfy it belongs to the OP (money laundering risks) before returning to him/her.

ididnotknow

Thanks YB - However that's the issue with T&C's they are never unambiguous (They are drafted by lawyers who like to deal in the grey areas, rather than definatives)

I read that clause as meaning: If your credit limit is £8000 & the balance on your account is nil, if you paid £6000 in don't expect the ability to spend £14000 in a transaction, they may restrict the spending to only £8000 (the amount of the credit limit)

also what thoughts on charging an cash advance fee - if technically speaking they are not advancing anything are they entittled to apply this fee ?

chattychappy

ididnotknow wrote: »

if technically speaking they are not advancing anything are they entittled to apply this fee ?

Those T+Cs that YB linked to refer to "cash transactions", not cash advance.

So no issue with 3%.

(I think it would have been OK anyway.)

redpete

ididnotknow wrote: »

Thanks YB - However that's the issue with T&C's they are never unambiguous (They are drafted by lawyers who like to deal in the grey areas, rather than definatives)

What's ambiguous about "You should not make payments that place the Account in credit"?

CH27

ididnotknow wrote: »

Thanks YB - However that's the issue with T&C's they are never unambiguous (They are drafted by lawyers who like to deal in the grey areas, rather than definatives)

I read that clause as meaning: If your credit limit is £8000 & the balance on your account is nil, if you paid £6000 in don't expect the ability to spend £14000 in a transaction, they may restrict the spending to only £8000 (the amount of the credit limit)

also what thoughts on charging an cash advance fee - if technically speaking they are not advancing anything are they entittled to apply this fee ?

''You should not make paymenst that place the account in credit''
That is vey clear.