Can a credit card refuse to return funds if the account is in positive credit

Vmix

In order to obtain some low cost funds I took out a new credit card with 0% transfer rate for 2 years. I then completed the transfer to a card with little balance putting the card into a positive balance. I have done this in the past several times over the last decade but not for a couple of years. Normally I have just asked the card with the positive balance to refund me giving me the cash in my current account effectively creating an interest free loan for two years which I pay back monthly.
This time Tesco bank has refused to transfer my positive credit - stating it was created by a balance transfer - they offered to repay it to the transfer card it was transferred from which I obviously dont want to do.
Since all of this has been going on a couple of weeks various transactions have gone in and out of the Tesco card making the balance less than the original transfer and also impossible to define what of the current positive balance is directly related to the original transfer as there have been some refunds on the card as well as purchases !
surely they can’t refuse to return funds to me ?
And they can’t return to the original transfer card if they can prove what exactly came from that card and I don’t authorise them to do it ? 
what happens if I just close the Tesco card surely they have to return the funds to me then ?
Many thanks 
D

MattMattMattUK

Vmix said:

In order to obtain some low cost funds I took out a new credit card with 0% transfer rate for 2 years. I then completed the transfer to a card with little balance putting the card into a positive balance. I have done this in the past several times over the last decade but not for a couple of years. Normally I have just asked the card with the positive balance to refund me giving me the cash in my current account effectively creating an interest free loan for two years which I pay back monthly.
This time Tesco bank has refused to transfer my positive credit - stating it was created by a balance transfer - they offered to repay it to the transfer card it was transferred from which I obviously dont want to do.
Since all of this has been going on a couple of weeks various transactions have gone in and out of the Tesco card making the balance less than the original transfer and also impossible to define what of the current positive balance is directly related to the original transfer as there have been some refunds on the card as well as purchases !
surely they can’t refuse to return funds to me ?

They can refuse to send you those funds, because they are not funds paid in, but from a balance transfer, they have offered to return them to the source, which was not you. 

Vmix said:

And they can’t return to the original transfer card if they can prove what exactly came from that card and I don’t authorise them to do it ? 

They can.

Vmix said:

what happens if I just close the Tesco card surely they have to return the funds to me then ?
Many thanks 
D

They will probably return them to the originating balance transfer. You are also running them risk of them shutting your account down as deliberately having a positive balance is a breach of the terms and conditions.

Your best best is to just spend on this card alone until all the credit card has gone and not do this scheme again. 

molerat

How much did this put the card into credit ?

How many and how much were these refunds ?

Be careful they don't instigate a money laundering investigation along with a CIFAS marker.

MrFrugalFever

When I ended up with a positive balance on my Barclaycard due to a few refunds coming in with a £0 balance I got a message on the app to state that I would get a cheque in 20 days if I hadn't spent the positive balance. I guess all lenders are different, however, purposefully initiating a BT to put the card in a positive balance could be a breach of the T's & C's for them and therefore, due to AML, would only transfer back to the original source.

As mentioned above, I wouldn't be exercising such a scheme going forward for fear of a CIFA's marker - that's the last thing you'll want!

grumbler

Vmix said:

Can a credit card refuse to return funds if the account is in positive credit

Tesco bank has refused to transfer my positive credit - stating it was created by a balance transfer - they offered to repay it to the transfer card it was transferred from which I obviously dont want to do.

In fact, what they offered is to return the funds.
What you want isn't.

eskbanker

Vmix said:

In order to obtain some low cost funds I took out a new credit card with 0% transfer rate for 2 years. I then completed the transfer to a card with little balance putting the card into a positive balance. I have done this in the past several times over the last decade but not for a couple of years. Normally I have just asked the card with the positive balance to refund me giving me the cash in my current account effectively creating an interest free loan for two years which I pay back monthly.

If you want low cost funds in your current account from a credit card then you should get a money transfer card/deal rather than trying to bend (at best) the rules of a balance transfer deal:

https://www.moneysavingexpert.com/credit-cards/money-transfers/

retiredbanker1

From the credit card's point of view they cannot be certain of the source of funds that now has put your card in credit.

They could see it as a form of money laundering - so the information and advice you have already been given should be your next course of action - unless you want them to close your account.

Vmix

Many thanks for all advice, didn't realise implications, whole point was to buy a car which I thought I could use credit card for but as it turns out car dealers don't seem to accept credit card payments these days! Will have to have a rethink and either reverse the transfer at risk of a fee and look at the money transfer card deals or just spend what's on there over the next few months. 

born_again

As you have found out they can & they can even bounce the balance transfer back on the grounds it is more than the balance on the card.