Credit Card Refund

ashleigh40

Has anyone else received a holiday refund but the CC company has used it towards your balance. I’ve never missed a payment, and my balance was approx £1500. The refund included a friends holiday payment, so I’m now in the position of having to pay her back from my own money. Thanks 😊 

[Deleted User]

Yes, lots of people.

It's standard that a refund reduces the balance.

Not missing payments has no bearing.

TadleyBaggie

Look on the bright side, you now owe less on your credit card. So the money you were going to pay off the credit card can now go to your friend.

[Deleted User]

If you are in persistent debt (unable to pay more than the minimum or a token sum monthly meaning the capital debt is hardly being touched) then yes it's a good thing they did that as you will pay less interest and can clear your debt faster. Your reference to "paying her back from my own money" indicates you don't really grasp the situation, you have £1500 of the bank's money that you owe them - you need to deal with that - the money you save from having a reduced balance can help you pay her back.

born_again

ashleigh40 said:

Has anyone else received a holiday refund but the CC company has used it towards your balance. I’ve never missed a payment, and my balance was approx £1500. The refund included a friends holiday payment, so I’m now in the position of having to pay her back from my own money. Thanks 😊 

Depends on the statement balance from the previous month & when the credit hit.
As some card providers do not take retailer credits as a payment. So best bet is to ring or send them a message to check. Or if in doubt. Just make the minimum payment.

chistery

born_again said:

ashleigh40 said:

Has anyone else received a holiday refund but the CC company has used it towards your balance. I’ve never missed a payment, and my balance was approx £1500. The refund included a friends holiday payment, so I’m now in the position of having to pay her back from my own money. Thanks 😊 

Depends on the statement balance from the previous month & when the credit hit.
As some card providers do not take retailer credits as a payment. So best bet is to ring or send them a message to check. Or if in doubt. Just make the minimum payment.

You seem to be answering a different question?

born_again

chistery said:

born_again said:

ashleigh40 said:

Has anyone else received a holiday refund but the CC company has used it towards your balance. I’ve never missed a payment, and my balance was approx £1500. The refund included a friends holiday payment, so I’m now in the position of having to pay her back from my own money. Thanks 😊 

Depends on the statement balance from the previous month & when the credit hit.
As some card providers do not take retailer credits as a payment. So best bet is to ring or send them a message to check. Or if in doubt. Just make the minimum payment.

You seem to be answering a different question?

Of course the credit will go to the balance. But it is just what the OP means. hence the answer. Don't want the OP to get a late payment fee for not making a payment 👍

pbartlett

A refund will go towards reducing the balance. As @born_again says, this does not necessarily mean that you have made a 'payment' that month and thus be careful and still make at least the minimum payment.

[Deleted User]

Deleted_User said:

If you are in persistent debt (unable to pay more than the minimum or a token sum monthly meaning the capital debt is hardly being touched) then yes it's a good thing they did that as you will pay less interest and can clear your debt faster. Your reference to "paying her back from my own money" indicates you don't really grasp the situation, you have £1500 of the bank's money that you owe them - you need to deal with that - the money you save from having a reduced balance can help you pay her back.

At no point did the OP say why they have a credit card balance. They could have a 0% deal and be paying off a debt over a long period for all we know, in which case it's perfectly reasonable for them not to clear the whole balance each month.

[Deleted User]

gordon_harris said:

Deleted_User said:

If you are in persistent debt (unable to pay more than the minimum or a token sum monthly meaning the capital debt is hardly being touched) then yes it's a good thing they did that as you will pay less interest and can clear your debt faster. Your reference to "paying her back from my own money" indicates you don't really grasp the situation, you have £1500 of the bank's money that you owe them - you need to deal with that - the money you save from having a reduced balance can help you pay her back.

At no point did the OP say why they have a credit card balance. They could have a 0% deal and be paying off a debt over a long period for all we know, in which case it's perfectly reasonable for them not to clear the whole balance each month.

OP paid for a holiday on the card, how is that a balance transfer? Banks don't do refunds offset against balances if the card is 0% and being managed / paid off monthly as there is no reason to.