HSBC - direct debit/repayments not recognising Vendor refunds

MulesMarinair

Hi,
I was wondering if anybody has had a similar experience to this or can tell me why HSBC's process is as it is -

Jan 21 I charge £ 1400 to my credit card to buy part of a kitchen
Jan 28 The £ 1400 is refunded to my credit card by the Vendor as I cancelled the order.
Some time between Jan 21 & 28, HSBC send out a credit card statement.
From Jan 28, I have a balance of c. £50 on my card.

Last Monday, Feb 18th, HSBC take the £ 1400 from my current account and clear down my credit card balance. Well, they don't clear it down, they put it into a very large Credit balance as I owe only a small amount.

Upon calling them, I am told that their "system" doesn't recognise refunds by suppliers as payments.

Anybody know why?
I've asked HSBC and they haven't provided an explanation.

Whats more, and this is what got to me, I was told that it would take up to 11 working days to transfer it back to my current account.

Now, luckily, I am fortunate enough to have cash there to cover my mortgage and council tax this month, but if I hadn't, they'd have pushed me into overdraft.

I work for another UK bank, and to me, none of this sits right. The liability on my card was cleared down long before (21 days) they issued the direct debit.
Why should a vendor repayment be any different to a payment in hard cash or via a direct debit... when is a liability not a liability ???
(I know some auditors who'd love to hear their reply to that....)

Sorry, rant over. If anybody could enlighten me it would be appreciated,
I'm off to the Current Account and credit card review section...
MM

realaledrinker

Many (most?) credit cards will debit you with the balance on the card at statement date, irrespective of any credits which happen subsequently. I would have thought this to be the norm, rather than the exception.

dellwear

If it was taken by DD then ask your branch to do an

indemnity

claim under the direct debit guarantee and the money should be back in your account by the morning. There's no reason it should take 11 days.

YorkshireBoy

dellwear wrote: »

If it was taken by DD then ask your branch to do an

indemnity

claim under the direct debit guarantee

There hasn't been an error*, since both the amount and date have been pre-notified well in advance.

Therefore the OP's bank will be refused an indemnity claim when they approach the originator (HSBC). In the meantime, if OP's bank have paid out under the guarantee, they'll very likely withdraw the payment once they've been refused the indemnity claim by HSBC.

It'll be best to wait for HSBC's internal procedures to run their course IMHO.


* As defined in the direct debit guarantee:
http://www.bacs.co.uk/BACS/Consumers/Direct+Debit/Your+rights/