Closing credit cards with positive balance

jimbob_no1

Hi there,

First post time! Been a lurker for years!

Anyway, I'm about to close a number of credit cards as I've paid them all off, but at least two of them have positive (i.e. overpaid) balances of at least £50. Will that money be refunded as part of the closure process - by cheque or whatever? I assume they would have to refund it but you never know with these credit card companies!

Thanks!

funky04

When you phone to close the account with positive balances, ask if they will refund your money by cheque to your home address, or if you dont want to close account ask them to refund the money anyway.

Stoneman_2

I recently closed a Nat West Credit Card which had a positive balance of 33p and they sent me a cheque.

Mozette

I have heard of people being charged to get a positive balance back. Could you not just spend it first?

UK007BullDog

Mozette wrote: »

I have heard of people being charged to get a positive balance back. Could you not just spend it first?

I have never been charged a fee for closing the account. I can only see people being charged if they still have some money outstanding on the card.

Best is the let the positive balance sit for 2 to 3 months. Ask them to close the account and they will most likely send you a cheque. I got those ranging from 6 pence to £86. Its better to close it with a positive balance to avoid any delays during closure.

Sky was the worst as they were sitting on my money for 3 months to ensure I did not have any money coming off the card. Then they insisted to take 6 to 12 weeks to send the cheque.

This cheesed me off big time as
1. It was a balance transfer
2. Card never got activated (so no purchases)
3. balance transfer ended and I moved it to a new card.

So they sat on my money collecting interest.

dag_2

I don't have much experience of this card-account-closing thing, but I'd have thought that if you want the minimum bureaucracy getting between you and your small credit balance, then it's best just to present the card for your supermarket shopping until you have a debit balance of between zero and five pounds.

If you've got a direct debit set up to pay the account, then the minimum payment is usually the full payment for balances of less than £5, so you can just leave it until the DD has gone through. But do check your statement when it comes through, I had an unpleasant surprise from my last Halifax statement which set my minimum payment at zero despite having a balance of 29p, and which threatened to charge me a finance fee of 50p if I didn't pay it. But then - once the card is clear, then cancel it.

If you can't do this because you've forgotten your PIN, get a PIN reminder. If you can't do this because you've lost your card in your clutter, then order a replacement card.

That said, I think this is only practical for small credit balances. I wouldn't suggest doing this for credit balances of several thousand pounds.

If you've got a very large credit balance, then you can just ask them to send you a cheque for it anyway, without necessarily having to close the account. And if you find it's taking too long, you could still just present the card at the supermarket anyway. Then just settle the last statement when you get it, which should show the cheque netting off the credit balance, but which will also show purchases as well.

If you made it clear that you wanted a credit balance refund, then they should not treat it as a cash advance. So you should not be charged any extra interest for making additional purchases in the same month. However, do check the T&C's before you do this.

Personally I wouldn't want to close an account down until I'm sure I've got all my money back from them. But make sure they don't have an excuse to add charges for other things too.

jinkssick

if its £50, just do your normal weekly shop with it. when it gets to 0, call and close.

Roo22_2

Hi there,

I'm afraid this was the closest thread I can find to my question and I couldn't work out how to start a new one.

So my question: I have had a credit card with hsbc for 10 years and 4 other accounts of various types. I hardly use my credit card, but it is jolly useful for emergencies or when you are travelling to know you have that back up. It recently expired and they sent me a letter saying they would not renew it unless they heard from me, so I called up to say I would still like it - "Your new card will be with you in 5-7 days" I was told. After a month and nothing arrived I called again and was told that I could have a new one but if I didn't use it in 30 days it would be cancelled or I would be charged for keeping the account open.

Can the bank lawfully do that? Bearing in mind I have had a card with them for 10 years and used it very little in that time and never been charged. In addition I have 4 other accounts with them which I have also had for around 10 years - where is their customer service?? What is the point in being a loyal customer??

Can anyone shed some light on this please? I'd be very grateful.

lisyloo

Can the bank lawfully do that?

Pretty sure they can.

Bearing in mind I have had a card with them for 10 years and used it very little in that time and never been charged.

My observation would be that you are costing them money to administer the account from which they are making virtually no profits.

In addition I have 4 other accounts with them which I have also had for around 10 years - where is their customer service?? What is the point in being a loyal customer??

Well that paints things in a slightly different light as you may be a valuable customer elsewhere.
My guess is that they haven't worked that out and the credit people are working independently to get rid of "costly" customers.

Why don't you complain in writing or talk to someone in customer services and tell them how you feel given the other accounts you have.

I suspect one department is working independently here and has not looked at your overall status.

At the end of the day they can do what they want and you can go elsewhere but it might be worth a chat with them first.
They might change their mind when they see you have other accounts.

CannyJock

Roo22 wrote: »

Can the bank lawfully do that?

Will be in their T&C's that they can withdraw the card at any time no doubt.

Roo22 wrote: »

In addition I have 4 other accounts with them which I have also had for around 10 years - where is their customer service?? What is the point in being a loyal customer??

You just answered your own question there

Reality of today's retail banking is that departments will work in isolation. Not saying that they should. And not saying that they don't have the technical capabilities to connect your accounts and review you as a person.

The idea of the friendly bank manager where you open your first child saver piggy bank account, then helps you out with an overdraft when you're a student, then helps you out with a car loan for your first car, then helps you out with a mortgage for your first home is all a thing of the past.

HSBC have a great 0% purchases card at the moment that allows you to earn interest on your own money while spending theirs at 0%. Like Lisyloo says, worth a call to see if they'll give you that offer. If they don't and it's for "new customers only" then I'd say cancel the card and apply for a card elsewhere. That way you've given them a chance to retain you as a customer which is more than generous if you ask me