Refund on credit card taken off DD amount

r2015

This might be of information to some people, or not.


I got a refund for something and it was credited to my Nationwide credit card.


When my direct debit was taken from my bank account to pay the full amount it was less the refund amount.

datlex

So have the two combined paid off your statement balance in full?

r2015

So have the two combined paid off your statement balance in full?

Of course. .

Consumerist

Santander do the same.

Kim_13

As do Capital One.

Consumerist

This looks like an interesting trend. There was a time when it was virtually unheard of for refunds to be considered as repayments.

I suspect that this may be an issue that has come up during the ongoing CMA investigation. Have the banks got wind of something coming out of this investigation?

Kim_13

Perhaps, it does seem quite widespread now. They aren't classed as repayments for the purposes of meeting the monthly minimum, however.

Consumerist

Kim_13 wrote: »

Perhaps, it does seem quite widespread now. They aren't classed as repayments for the purposes of meeting the monthly minimum, however.

But if that was the case, the DD payment wouldn't be reduced by the amount of the refund, would it?

From my Santander credit card statement :-

If you make an additional payment or a refund is credited to your account more than 5 working days before your payment due date, the amount collected by Direct Debit will be adjusted to take account of this payment. The original Direct Debit amount will still be taken if an additional payment or refund is credited to your account less than 5 working days before the payment due date.

My emphasis.

It seem pretty clear to me that a refund is regarded as a repayment contributing to the minimum required.

agrinnall

Nationwide have been doing it for many years, and it always plays havoc with my reconciliation in MS Money. I'd prefer it if they didn't, but the reason for it may well be to reduce the likelihood of people having a credit balance (which is what happened with my Co-op card recently).