CreditCard Company won't cancel my card and refund me due to Money Laundering rules.

roscob

aimzrabbit wrote: »

have i read this right ?

you opened a brand new barlcaycard account and they gave you a 9k Limit ?

you send the 9k to the royal bank of scotland as 1 balance transfer ?

isnt the offer from barclaycard of 0% so that you transfer onto the barclaycard and get the benefit on the deal

you have transfered from barclaycard to your old card which will now acrrue interest at 9k on your old cards rate ?

rabbit

Nope - you've definitely not read it correctly. Feel free to read it again.
Existing customer of barclays credit card did a balance transfer of £9K to a Bank of Scotland (not Royal) Credit Card.
The interest rate @ Barclays is 0% for 12 months on the 9K debt + the BT fee (2.8% of 9K)
Trying to cancel the Bank of Scotland CC and receive the outstanding balance (just over 9K)

MrSilk

roscob wrote: »

Nope - you've definitely not read it correctly. Feel free to read it again.
Existing customer of barclays credit card did a balance transfer of £9K to a Bank of Scotland (not Royal) Credit Card.
The interest rate @ Barclays is 0% for 12 months on the 9K debt + the BT fee (2.8% of 9K)
Trying to cancel the Bank of Scotland CC and receive the outstanding balance (just over 9K)

Still sounds dodgy to me..

You spent 9k on the Barclaycard, did a BT to another card and now you are trying to close the other card and receive the £9k... Huh?! - this doesn't make sense. :eek::eek::eek:

Unless I'm being stupid and missing something obvious...???

ILW

Are you saying you transfered a 9K CREDIT balance?

InsideInsurance

Yes, rather than getting a card that allows you to transfer directly to your current account they have instead tried to use an old card to create a credit/ positive balance on it with the intent of then getting that paid out as cash/ BACS to their current account.

CLAPTON

basically the OP was trying to do what we all used to do with the old egg money card
the egg card used to allow credit balances which could be transferred to a current account freely
nothing illegal, nothing dodgy, no problem with money laundering
however these days cre dit cards dont allow large credit balances and usually bounce them back

sfax

CLAPTON wrote: »

however these days cre dit cards dont allow large credit balances and usually bounce them back

And therein lies the rub. Why do they let transactions like this take you £9k into credit in the first place if that's such a bad thing to do?

meer53

sfax wrote: »

And therein lies the rub. Why do they let transactions like this take you £9k into credit in the first place if that's such a bad thing to do?

Because when you make the 9k transfer, they have no idea what the balance is on the card you're moving it to. You could have a 9k debit balance for all they know. It's only when the transfer gets there that the alarm bells start ringing.

dalesrider

sfax wrote: »

And therein lies the rub. Why do they let transactions like this take you £9k into credit in the first place if that's such a bad thing to do?

Well given that it was barclaycard that transfered it to BoS. Who then said NO.
So BoS have not allowed the 9K credit.

So in effect BoS have done what you are saying.:T

Wonder if barclaycard will now withdraw the offer when BoS contacts them to advise what they attempted to do.

Eonel

I'm also also wondering if he will get his £252 balance transfer fee back when the money is returned. I cant see they are under any obligation to if it is shown that OP was trying to use the balance transfer process to get a cheap loan.

aleph_0

roscob wrote: »

Nope - you've definitely not read it correctly. Feel free to read it again.
Existing customer of barclays credit card did a balance transfer of £9K to a Bank of Scotland (not Royal) Credit Card.
The interest rate @ Barclays is 0% for 12 months on the 9K debt + the BT fee (2.8% of 9K)
Trying to cancel the Bank of Scotland CC and receive the outstanding balance (just over 9K)

The T&Cs for your Bank of Scotland CC, like every other credit card, will clearly say that you're not allowed a positive balance. If people make a mistake, sometimes banks will pay back overpayment by bank transfer. In your case, they're quite reasonably offering to send the money back to where it came, from Barclays. I'd argue Barclays shouldn't pay back the 2.8% fee, since they have done nothing wrong - you told them you had £9k of debt at BoS that you didn't have, and as a result you have wasted their and BoS's time.

I'd suggest your best plan is to either take up the transfer back to Barclays, or if they are happy for the account to stay in credit, put your everyday spending onto the BoS card and whittle down the money that way. Note that you won't have the usual section 75 protection when using the account this way, however.