Credit Card in Credit

smeef · 26 July 2007 at 3:47PM

This is possibly a stupid question but there's so much I don't know when it comes to money and banks!

I paid for my car insurance on my credit card, knowing I nearly had enough to pay off the balance and not wanting to spread the cost over the year with the insurer.

I dutifully paid it off in one go and then when I moved house I got a refund of just over a £100. Because I never ever use my credit card, apart from infrequent big purchases like my insurance and emergencies, I am now in credit for that amount.

I asked at the bank (who I have a current account, savings account and credit card with) and they said I could have the money transferred to my account but that it would cost me, the same as if I took cash out using the credit card.

Am I being naive to think, thats unfair? That's my money, I'm not taking cash to pay back to them later, it's actual money.

So now I'm feeling a bit stuck. The money would obviously do better in my ISa than sitting on my credit card, but I don't want the bank taking any part of it, just for giving it back. I suppose I could just use my credit card to buy things for that amount, but I deliberately don't know my PIN to remove the temptation to use it.

I'm thinking that the best bet is to just leave it on the card, and enjoy a largeish discount from next year's insurance. But should I be able to get the money back from the bank, without being charged?

If anyone can advise me about how to get the money from the bank, or failing that what my best option is, I'd be pleased to hear it.

Thanks.

ThankYouAndEnjoy! · 26 July 2007 at 4:04PM

Which Bank is it??

Is there anything in the terms and conditions of the card that suggests that you would be charged for this service??

The short answer should be that you should be able to request transfer without it costing a fee. Have you asked about the possibility of a cheque - have they said this will cost also?

If they do not give you your money, write in and complain to their concerns department -

sicker · 26 July 2007 at 4:08PM

Phone the bank and ask them to send you a cheque for your positive balance. There should be no charge for this.

angelavdavis · 26 July 2007 at 4:08PM

Stuff them, cancel the card and ask for refund by cheque (they usually hold onto it for ten days before sending it to you).

As you seem to be someone who pays off the balance regularly, apply instead for a cashback card so you get money everytime you spend. Have a look at Martin's article about cashback cards.

I am keen to name and shame - who is the card with? It's not AMEX is it? They refused to refund me £5 that was overpaid by mistake without charging me (hence my asking). I went shopping and spent £10, paid the £5 extra and closed down the account!

smeef · 26 July 2007 at 4:20PM

Thanks guys, I didn't think they should be able to charge me for this. I think part of the problem is that when I ask someone in a branch about something, half the time "don't know because they're not trained to deal with that"!! Next time I want something from them I won't just accept the first answer they give!

Thanks for the tip about cashback cards, I'll take a look. I've never thought about changing my card, simply because I thought not using it meant it wouldn't be worth it. And I generally live in fear of debt and credit cards. I've so much to learn!

For those that wanted to know which bank, it was HSBC. I've had a Mastercard with them since I opened my student account 7 years ago. They're probably hoping I'll start using it!