Refunds don’t count towards payments

grumpy_codger

That's why I said 'some'.  And why not? If they allowed you to increase your debt by £150 and than it drops by £150, this is no different from making a minimum payment.

ATM there are just to ways of banks doing this. Obviously, the system can be more flexible, especially if the balance is paid in full.

thebandit64

Thanks for all the interesting and varying comments! For info, the refund was from a transaction from 10 months ago. I’ve not long switched banks and there was an issue with some of the dd switches so I left them and just made payments each month, never missed one in 10 years - it’s clearly not my week!! Oh well, I live and learn!

saajan_12

Would most people expect that refunds would count as a payment? A refund is just undoing a spend, but even if that spend hadn't been made, you'd still have to make some payment (unless the balance is now £0). This is an inherent disparity whenever min payments are less than the full balance. 

DullGreyGuy

grumpy_codger said:

That's why I said 'some'.  And why not? If they allowed you to increase your debt by £150 and than it drops by £150, this is no different from making a minimum payment.

ATM there are just to ways of banks doing this. Obviously, the system can be more flexible, especially if the balance is paid in full.

It already states if the full balance is paid that no minimum payment is required

The problem with "some" is that you then get into the arguments that the rules are too complex for someone to understand. Add to that that many refunds are not processed correctly so the bank cannot tie it back to the original payment. Sure if its a store you've only used once then its obvious but if its your local cornershop you use daily they'll have no idea which of the 100 transactions in the last 12 months the £1.50 refund relates to... is it a full refund or partial? Is it a payment this period or a previous?

There are benefits to simplified rules

thebandit64

saajan_12 said:

Would most people expect that refunds would count as a payment? A refund is just undoing a spend, but even if that spend hadn't been made, you'd still have to make some payment (unless the balance is now £0). This is an inherent disparity whenever min payments are less than the full balance. 

A lot of people would when it clearly shows on the account as ‘payment received’ and has reduced the amount owed. And when some cards allow as a payment and some don’t, its not easy to spot unless you scour the small print - which most read when they get the card and then never look at again!