Can a bank reverse a balance transfer?

steddy_eddie

Hello,

I recently applied for a Santander credit card with a 0% balance transfer deal and carelessly requested a balance transfer from another Santander card. Apparently a Santander>Santander transfer isn't allowed. Fair enough, my mistake.

Anyway, the transfer appears to be taking place anyway. Hmm...

Assuming this goes through and they notice their error, are they allowed to revoke it? What are the rules here?

Thanks!

[Deleted User]

Yes, they can.

born_again

Or they will just charge interest on it.

But odds on "Computer says NO" and it will go no where.

jonesMUFCforever

IMO It will not go through - although they may try to charge you the fee.

Sandtree

steddy_eddie said:

I recently applied for a Santander credit card with a 0% balance transfer deal and carelessly requested a balance transfer from another Santander card. Apparently a Santander>Santander transfer isn't allowed. Fair enough, my mistake.

Are you sure they "aren't allowed" rather than than they simply don't qualify for the promotional rate?

As its all one bank between the two of you you can agree to do whatever but you may find you end up in the situation of having the transfer fee to pay and it still incurring interest when it hits the new card.

steddy_eddie

It's a zero fee deal.

The balance has appeared on the new card but not been transferred from my original Santander card.

I'm annoyed at myself for not reading the fine print & assuming that their system would flag up an invalid transfer at the point of request.

I think I'll contact them and request they remove the balance from the new card.

Not impressed with Santander at the moment, they seem very good at letting you make mistakes in their favour e.g. changing direct debits on card repayments - these take much longer to go through when they stand to earn interest on the balance (changing from part repayment -> full repayment).

steddy_eddie

Sandtree said:

As its all one bank between the two of you you can agree to do whatever but you may find you end up in the situation of having the transfer fee to pay and it still incurring interest when it hits the new card.

Surely this would have to be explicitly stated in their T&Cs? All it really says is "You cannot make Balance Transfers to pay off an amount you owe on any other Card issued by a Santander Group company. We will let you know of any other restrictions that apply before you make a Balance Transfer."

https://www.santander.co.uk/assets/s3fs-public/documents/credit_cards_terms_conditions_and_important_information_jun_20.pdf

That seems to imply that they would need to inform me about chargeable interest on Santander > Santander balance transfer amount.

But either way I don't think it's worth the hassle. I'm going to get it reversed, clear the original balance some other way and not deal with Santa again!

bradders1983

steddy_eddie said:

Sandtree said:

As its all one bank between the two of you you can agree to do whatever but you may find you end up in the situation of having the transfer fee to pay and it still incurring interest when it hits the new card.

Surely this would have to be explicitly stated in their T&Cs? All it really says is "You cannot make Balance Transfers to pay off an amount you owe on any other Card issued by a Santander Group company. We will let you know of any other restrictions that apply before you make a Balance Transfer."

https://www.santander.co.uk/assets/s3fs-public/documents/credit_cards_terms_conditions_and_important_information_jun_20.pdf

That seems to imply that they would need to inform me about chargeable interest on Santander > Santander balance transfer amount.

But either way I don't think it's worth the hassle. I'm going to get it reversed, clear the original balance some other way and not deal with Santa again!

Why? Because of an initial mistake you made yourself by not reading the terms? Seems harsh.

Sandtree

steddy_eddie said:

Sandtree said:

As its all one bank between the two of you you can agree to do whatever but you may find you end up in the situation of having the transfer fee to pay and it still incurring interest when it hits the new card.

Surely this would have to be explicitly stated in their T&Cs? All it really says is "You cannot make Balance Transfers to pay off an amount you owe on any other Card issued by a Santander Group company. We will let you know of any other restrictions that apply before you make a Balance Transfer."

https://www.santander.co.uk/assets/s3fs-public/documents/credit_cards_terms_conditions_and_important_information_jun_20.pdf

That seems to imply that they would need to inform me about chargeable interest on Santander > Santander balance transfer amount.

But either way I don't think it's worth the hassle. I'm going to get it reversed, clear the original balance some other way and not deal with Santa again!

I think you may not have understood my comment properly... T&Cs are what are legally enforceable between the parties of a contract, irrespective of what the T&Cs say two or more parties can do whatever they want as long as all agree to it. On the basis of there not being a second bank involved I was pointing out that agreeing for funds to go back to the original card would be easier than had the transfer been to Natwest say and for some reason there was a desire to back out the transfer.

For a start they do say according to the terms you just linked to... Definition:
‘Balance Transfer’ means either: a) a debit from your Account of an amount you owe another lender in the United Kingdom; 

What you did was to the same lender and so fails the definition of a balance transfer (the b branch is about current accounts). It then goes on to say:

13.4 Balance Transfers a) You cannot make Balance Transfers to pay off an amount you owe on any other Card issued by a Santander Group company

So that covers off the fact it could be two different parts of the Santander Group which would legally be a different Lender.

The document is actually incomplete as it states charges are included in term 8 of the agreement but the document starts at term 12.

steddy_eddie

bradders1983 said:

Why? Because of an initial mistake you made yourself by not reading the terms? Seems harsh.

Haha, no.

Because:

A) They have initiated a Santander > Santander transfer when their terms don't allow it. Seems sloppy. I'm the little guy. They're the big bank corp. Should be their responsibility to protect against this kind of pitfall. When I queried with them how long the transfer would take they said it wouldn't process as the sending bank is Santander. Transfer is now complete, but ambiguous.

Each time I change the repayment type (full / partial) the amount of time it takes to amend the direct debit varies in an unreasonable way. Quickly when I reduce to part payment (in a matter of days so that they maximise interest) and slowly (up to 2 months!) when changing back to due balance (exposing the customer to additional interest cycles).

C) When I switched my current account away from them I had problems with their direct debit switchover. No big deal as switches are guaranteed, but still a hassle and made them seem unprofessional.

...

I'm sure there are worse lenders out there but I can't say they've earned my loyalty.

[Deleted User]

steddy_eddie said:

bradders1983 said:

Why? Because of an initial mistake you made yourself by not reading the terms? Seems harsh.

Each time I change the repayment type (full / partial) the amount of time it takes to amend the direct debit varies in an unreasonable way. Quickly when I reduce to part payment (in a matter of days so that they maximise interest) and slowly (up to 2 months!) when changing back to due balance (exposing the customer to additional interest cycles).

That'll be down to the timing of the request and in which statement the required notification of the change can be given.