Credit card - In Credit!

Tingleyone

First off I always pay my credit card off by direct debit and the full amount. It is with HSBC.

I made a purchase of £942.62 on 9th April - My statement was produced on 27th April with a balance of £1162.06

I received a refund of £849.95 showing on 18th May.

My direct debit payment of £1162.06 was due to go out on Monday 21st April. I went into my local branch on Monday and explained the situation and asked if they could help. They called the CC department but after much conversation, decided it was best if I returned the next day, with an appointment, the day the Direct Debit was paid.

I returned to the branch on Tuesday, and proceeded to sit for an hour whilst the customer advisor "discussed" the problem of my credit card which would be in a credit balance, if they took the £1162.06.

I asked if they could change the amount to £312.11, which was the correct amount owing. No was the answer, every time. There were mentions of my credit rating be affected,and also charges for non payment if they stopped the correct amount and made a manual payment for £312.11.

I was (reasonably) happy for them to take £1162.06 and the refund me £849.95 two or three working days after.

No was the reply.

They have taken the "balance" owing, fair enough, that is technically the balance that is owing. But so far they have not refunded any monies, and have said IF they do, then it will be less any purchases I have made since 27th April.

I have made a few (total of £29.74) so they will only refund me £820.21. This means
1/ I am paying in advance for any credit card purchases
2/ They have MY money

Any suggestions, or where do I stand.

I did have a little hissy fit, and threatened to close all my accounts and that of the two business we have with HSBC, but deep down, they know I won't as it is far too much hassle. And the Credit Card department has no idea of the relationship I have with the bank/branch.

The local branch advisor asked me to trust her, and she would sort it the next day. She called and told me they will only refund the £820.21. I am not happy about this at all, and they have given no idea of timing either.:mad::mad::mad:

tomsco

What's wrong with taking the £820.21?

Just because the additional spending hasn't been billed yet, doesn't mean you don't owe them.

Sure they may have been difficult, but the only owe you £820.21.

Consumerist

As far as I can tell, they will refund you whatever sum reduces your balance to zero at the time of the refund. Accordingly, I don't quite understand the problem; any transactions after the refund date will not be paid for in advance but will go toward your next statement balance.

Tingleyone

Thanks for getting back to me. I understand fully - and a warning to all others to just be careful with Direct Debits, if you receive a large refund.

I just feel that they have MY money, and have given no indication as to how long it will be before they give it back, and I mean the £820.21

I will not be using that credit card at all for the next month, and might not be using it for quite a while, as I am very careful and only spend what I know I can repay in full, when it is due.

jonesMUFCforever

Why not cancel the direct debit then and pay manually?
If you do choose this option DON't come on here winging about late payment charges if you mess up.

System

You quite rightly say they have your money.
However when you normally use the credit card, you technically have THEIR money.
Just do all your normal spending on the card over the next month or two and you will soon claw back the credit.

camuk81

Unfortunately you've probably had the refund hit your account just before the bank did their check.

Credit cards tend to auto check a card a few days prior to collecting a direct debit. If the money is not there before they check they will still collect the full amount.

From memory this check is normally around 7 working days before the direct debit goes to collect the money.

Hence this explains why some people who overpay never get money taken from their account.

As Jones said you could apply to do it manually and cancel the direct debit however there is the risk of not remembering or being caught out by bank holidays

walderston

camuk81 wrote: »

From memory this check is normally around 7 working days before the direct debit goes to collect the money.

Its 6 working days.

walderston

Tingleyone wrote: »

I just feel that they have MY money, and have given no indication as to how long it will be before they give it back, and I mean the £820.21

What you might be able to do is a 'Money Transfer' for the credit balance to your current account and this would normally be in your bank account in 3-5 working days.
Just check if there is any fees doing this, normally with a money transfer, there is only interest charged, however in this case there wouldn't be any interest as you had 'paid' the balance off already.

Hope that helps