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

chattychappy

dalesrider wrote: »

They should NOT be even mentioning money laundering to a customer.
That is clearly against the regulations. If they have concerns they need to report via their internal procedures.

Good point.

It would be a tipping-off offence if in the particular case they had suspicions which they are reporting and they told the customer. But not an issue if they are not suspicious in the particular case but describing a prevention procedure/policy to a customer as a justification for their behaviour.

It sounds to me if the call-centre ops are saying they can't do X cos of AML regs. A common script - when really AML probably has nothing to do with it.

As you suggest - if their money laundering reporting officer (MLRO) had concerns in this particular case, then this wouldn't get back to the customer.

aimzrabbit

i still cant get my head round that if you have a card with a 9K limit and no balance you can send 9k to another card provider and attempt to draw down on it

I understand what the OP is trying to do get a 0% loan of 9k + the transfer fee

but didnt they stop the credit card cheques for exactly this kind of purpose ? or do they still do them

rabbit

sfax

The AML angle is an interesting one but the transaction is not really that different (from a risk point of view) to someone taking on a credit card, taking £9k in cash from the credit card (as a cheque) and then transferring the balance to a 0% credit card. Net result is customer owes £9k + BT handling fee + cash handling fee, and customer has £9k in cash. AML is more about people hiding the source of new money. The source of the money in this case is clearly the bank.

They use AML procedures as an excuse when all they really need to do is explicitly state in their T&Cs that you cannot make a payment or BT that would result in a positive balance (as per Halifax link above)

meer53

The OP's wife insists the money is hers. As said before, it belongs to the cc issuer, it's credit. They can take it back whenever they like.

Doesn't really matter what regulations or t & c's are quoted, i can't see the OP getting their cash from BOS anytime soon.

bris

This is no different to buying goods on credit card then asking for a refund. The shop has to refund back to the card because its the CC's money and not the customers. The BOS are doing the same thing, it's a refund back to source, if the op wants the 9k they will have to get it directly from the lender.

MABLE

chattychappy wrote: »

Good point.

It would be a tipping-off offence if in the particular case they had suspicions which they are reporting and they told the customer. But not an issue if they are not suspicious in the particular case but describing a prevention procedure/policy to a customer as a justification for their behaviour.

It sounds to me if the call-centre ops are saying they can't do X cos of AML regs. A common script - when really AML probably has nothing to do with it.

As you suggest - if their money laundering reporting officer (MLRO) had concerns in this particular case, then this wouldn't get back to the customer.

Well when my online account was compromised to the tune of £57k they did in fact mention money laundering.

sfax

meer53 wrote: »

The OP's wife insists the money is hers. As said before, it belongs to the cc issuer, it's credit. They can take it back whenever they like.

Doesn't really matter what regulations or t & c's are quoted, i can't see the OP getting their cash from BOS anytime soon.

That's only true for the barclaycard with a £9k balance, i.e. £9k owed to barclaycard. The BOS card now has a £9k credit, i.e. money owed to the customer. If he declines to take up the offer of refunding the money back to Barclaycard, he could simply keep using the BOS card for purchases and slowly bring the balance back to £0. What they are refusing is to issue a cheque for the whole amount.

If it was me, i would demand that they close the account, say there is nothing in their T&Cs that says you can't have a positive balance and also reiterate that they accepted the BT when they should have declined it if it was a problem for them. Worth a try at least

roscob

Jonnydogooder wrote: »

Hi all there is a get out of card debt free info pack. All free info packs available from, dyo claim ,( do your own claim ) just google them its an all free site ,,hope this helps , pack has letters guides etc ,free ,go for it ,,

Can't see how this is relevant (Jonnydogooder - a similar post in 5 separate threads)

I wanted to get into credit card debt as it was the cheapest I could get.......but it might not work out that way. Time will tell.
Letter will be in the post tomorrow.

jojo57_2

I work for a credit card company,so I know that you can close a credit card with either a credit or debit balance,you will just continue to get statements until the balance is refunded or paid.I also know that you should not put your credit card into credit,that is not what the are designed for,they are not accounts that you pay money into unless you own money.If you do put your account into credit on purpose or if its an error(which happens quite a lot) it will ONLY be returned to source. When you do get it returned to source it will be up to that particular company if they are goin to refund the transfer fee.:)

rtho782

I completely understand what you are trying here - makes sense, 0% loan etc.

However as someone that works for a Bank I can completely understand why this would ring AML bells, although they have already breached AML regs by telling you that it is due to AML!

How could it be money laundering?

Person A applies for card with no intention to repay, transferrs balance to either another card in their name, or one in Person B's name, gets the cash and vanishes.

Person A could actually be Person Z committing ID fraud against Person A.

Person A could actually have intended to clear off a debt on their own card, but accidentally typed in Person C's card number as they are similar. Person C (that's you!) trys to abscond with the money.

Those are just a couple of risks to the bank off the top of my head. By taking the card into such a large credit balance you have breached your agreement with them and they can basically tell you to !!!!!! off now I'm afraid!!