Refused refund of negative balance on credit card

Lasastar

Hello

I'm wondering if anyone has experience or can give advice on my current predicament with a credit card.

Recently I consolidated some debt using blance transfers but miscalculated and left a negative balance on a credit card that I wanted to clear. I contacted the firm and asked for them to transfer the money to my current account but they refused as it came about from a balance transfer from another credit card. I then asked if they could then refund the money to the credit card that performed the balance transfer and they also refused this.

The only options they are giving me is to spend the money on the credit card or do a balance transfer to another card and therefore incur a balance transfer fee!!

Is this right? Can they refuse to refund a negative balance on a credit card?

I'm not sure what my next step is, can anyone help?

Thanks

sfax

It's usually against the terms and conditions to deliberately put the account in credit and they often won't let you close and get the money out for AML reasons. If you called immediately after the transfer completed, I'm surprised they didn't give you the option of reversing the transfer. That said, even if they did reverse it, you may lose the fee.

bengalknights

Unfortunatly this is the norm due to how the funds have been received into them

chattychappy

It is reasonable for them to perform checks, but after that I don't think it is reasonable for them to refuse a refund.

If there were genuine AML issues, then I wouldn't expect them to let you spend the money or transfer the money elsewhere.

Your suggestion that the monies are sent back to the CC from whence they came seems like a sensible solution - particularly as it should be possible to verify this was the original source. As this is an alternative to their refunding the money directly, I don't think it reasonable that they levy a BT fee.

True there was a breach of T+Cs, but the remedy for this is to insist you cover any losses they've suffered. In the absence of anything in the T+Cs to cover this situation (I've never seen anything) then I don't think they have grounds to arbitrarily attach conditions to what now happens to the balance.

Follow the complaints procedure - then to the FOS if necessary. I suspect it won't go that far and the operator you spoke to just doesn't know what to do.

grumbler

Close the CC and they will send you a cheque. Otherwise just spend the money.

sfax

grumbler wrote: »

Close the CC and they will send you a cheque. Otherwise just spend the money.

If you could do this, there would be no need for super balance transfers or money transfers. You're not allowed to close it with a large credit balance.

Perhaps you could insist on closing it and say that if a cheque is not an option then they'll have to send the money back from whence it came