Changed card, refund problem!

We had an interesting experience today. Took an 8 month old defective item back to a shop for the second time, no problem with a refund, except it was purchased on a card that has been ceased and the account closed.

The shop claimed that under money laundering legislation they could only refund back to the account used for the original purchase and that we would have to contact the original card issuer to have them transfer the money to us!

There must be many instances where folks have changed banks or cards between making a purchase and needing a refund due to faulty goods...

Anyone been there?

Comments

  • pappa_golf
    pappa_golf Posts: 8,895
    Combo Breaker First Post
    Forumite
    when you say account closed , do you mean you moved to another bank , in which case any DD were automativly transferred , any monies paid into the closed account would automaticly be transferred to new account
    Save a Rachael

    buy a share in crapita
  • It's not a change of bank, changed credit cards and closed the old account.
  • It's not a change of bank, changed credit cards and closed the old account.

    Clear as mud.
  • Clear as mud.

    Bought item with credit card ending 1234, changed card provider and closed account. Now have new card ending 7890... went with faulty item to shop, no problem with refund... except they would only refund to the card ending 1234, that's the problem
  • Like the data protection act, money laundering legislation seems to be used by many businesses whenever they come across something that they can't or won't deal with.

    There is no reason why a refund can't be paid onto a different card and if the retailer is worried about money laundering then all they need to do is to ensure that both the old and new card have the same account holder's name and if they want to make doubly sure, they can ask for further id such as a driving licence or passport.

    Money laundering is only an issue if payments are made in cash and are therefore untraceable. Money paid onto a credit card, irrespective of the card number or account holder is fully traceable.
  • This is common practice in retail, just call the old company once the payment has cleared and they can usually transfer it or issue a cheque.
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