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

sfax

aleph_0 wrote: »

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.

This simply isn't true. I often have positive balances on my credit cards and have spoken to customer services about accounts whilst I've had a positive balance on them and it's never been questioned over the phone, or by any other means.

If you can find somewhere in Bank of Scotland's T&Cs that clearly states you cannot have a positive balance then please highlight it for me. The T&Cs can be found here

http://www.bankofscotland.co.uk/creditcards/bank-of-scotland-credit-card/terms/

The issue is not the positive balance per se, it's the attempt to close the account with such a large positive balance and the transaction that is then required with respect to AML

sfax

dalesrider wrote: »

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.

They have allowed the credit. What they haven't allowed is the subsequent attempt to close the account when it is in credit. They have offered to transfer the money back to Barclaycard which means the balance transfer is already complete and successful and any "refund" is a new transaction.

My point is that you could technically setup a credit card account such that any transaction that resulted in a +£1k positive balance was blocked. A balance transfer is just like any other financial transaction and has to be accepted by both parties. Not only do credit card companies not block them, they often ignore them until you bring the positive balance to their attention (as I did with a positive balance of £2k in the past)

cos_2

I've opened a new CC and happily slapped several thousand quid into my current account to pay for a marvelous holiday, not many moons ago.

Barclaycard were happy to provide the credit and Halifax (BoS) were happy to receive the dosh and then allow me to buy flights, accommodation and underwear as necessary.

Never once was money laundering ever mentioned, and I fail to see why it's being used as an excuse not to pay out now. From the responses, it seems no-one else does either.

Formal complaint time, methinks. Ask them to explain in detail why they won't close your account and refund your money.

exel1966

I would think a number of reasons under conditions 14.4 / 14.5 and 14.6 could easily be used for refusing the transaction.

sfax

exel1966 wrote: »

I would think a number of reasons under conditions 14.4 / 14.5 and 14.6 could easily be used for refusing the transaction.

Really? Such as? You mention 14.6 which is talking about payments breaching legal requirements or exposing the company to action from a regulator. Really?

Even if you take one of these sub clauses and attempt to say that it suggests you can't have a positive balance, it is not clearly stated by any stretch of the imagination, as was suggested. If it was, you could have pointed to the clause that said "you cannot pay too much into your account and leave a positive balance".

exel1966

I'm not suggesting any of those clauses are anything to do with positive balances.
What the OP is trying to do is very irregular, that's good enough according to those clauses.

meer53

sfax wrote: »

Really? Such as? You mention 14.6 which is talking about payments breaching legal requirements or exposing the company to action from a regulator. Really?

Even if you take one of these sub clauses and attempt to say that it suggests you can't have a positive balance, it is not clearly stated by any stretch of the imagination, as was suggested. If it was, you could have pointed to the clause that said "you cannot pay too much into your account and leave a positive balance".

The credit balance issue is irrelevant really. What they've said is that they will return the amount to your Barclaycard but cant refund it due to AML regulations. They're not saying they won't do it because you have a credit balance on the card are they ?

I don't think you have any other option really. They're not obliged to discuss AML regulations with you either, so your plan hasn't worked out quite as you expected this time has it ?

sfax

exel1966 wrote: »

I'm not suggesting any of those clauses are anything to do with positive balances.
What the OP is trying to do is very irregular, that's good enough according to those clauses.

OK, I was solely referring to this statement above "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"

Re. irregular, perhaps but it's subjective. If it really isn't allowed, they should make it clear. As other people have said and I have experienced, you can do it and close accounts with large credit balances

sfax

meer53 wrote: »

The credit balance issue is irrelevant really. What they've said is that they will return the amount to your Barclaycard but cant refund it due to AML regulations. They're not saying they won't do it because you have a credit balance on the card are they ?

No, and that's not what I've said if you take the time to read the whole thread. In fact, I've already pointed out exactly the same point above

cos_2

The bit quoted below is on this site. It says to get an MBNA card, then, if you like, transfer a load of cash to your current account so that you get a cheap loan. I see nothing wrong with it at all. I also see no warnings that you might be deemed a miscreant for moving money into another account and then using it (either by small withdrawals or, even, one large one).

So, back to square one. Why is the OP being accused of potential money laundering issues? I suspect bank of Scotland are lying and again recommend a formal complaint.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>> quoted from MSE <<<<<<<<<<<<<<<<<<<<<<<<<

MBNA 0% for 20 months. Plus a 4% fee.
The MBNA Platinum card offers 0% for 20 months on money transfers (super balance transfers) for a one-off fee of 4% (higher than the standard fees charged on balance transfers). You can do the super balance transfer at any time within 60 days of opening the account. After the 20 month period the rate is a huge 20.9% representative APR, so ensure you've repaid the money by then.

Always pay at least the minimum monthly repayments or you'll lose the 0% deal.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>><<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<