URGENT: Advice please - Refund to Credit Card Legality

Aginoth

Hi

urgent cos the company concerned is calling me back...

Last summer we had a UK family holiday that was ruined due to sub-standard accomodation.

after a lot of arguing the company have agreed to pay us back £279 of the cost of the holiday, this amount was originally paid to them by Credit card.

Simple so far...

The Booking was in my name, but my mother paid for the balance on her credit card over the phone as this got us a cheaper deal. I have since paid off the balance to her.

The Company want refund the money to the credit card, even though they agree that the money is owing to me as the booking was my name. To retrieve the money from the Credit card is going to incur me extra cost in way of cash withdrawal charges.

Can they do this?
Can I demand cheque/Cash/BACS payment?
Am I protected under the Sale of Goods Act insomuch as they must refund me personally and not my mother?

pinkshoes

Given that the holiday was last summer, it is highly possible that the credit card would no longer exist, therefore they ought to offer some form of alternative in cases like this.

Could you tell them that this credit card no longer exists, so the refund would have to be paid in an alternative way?

Aginoth

they already made the payment to teh credit card. So they already know it's active unfortunately.

their idea of negotiation is pay first ask for agreement after....and I've had a few sharp with them about that too.

anyway the £279 was paid to my mothers card, against her debit balance, so to retrieve it will cost her cash withdrawal interst, not a good move.

My main tack will be that this is not a refund, it is compensation and so they can pay it however is convienient to me. Still be noce to have the legal words to throw at them though.

dmg24

Have the company stated that it is compensation? Many will say that it is a refund, as compensation implies fault or liability.

Aginoth

dmg24 wrote: »

Have the company stated that it is compensation? Many will say that it is a refund, as compensation implies fault or liability.

They have already accepted liability, in that they paid out £500 damages to my mother for injury and aggrevation of a lung condition caused by the damp and mould in the Accommodation they put us in. This is a secondary part of the claim for compensation for myself, my wife and 3 young children for ruining our holiday.

asea

If it is compensation they should pay it to you directly. If it is a refund of money it should be returned where possible to the card that paid for it (this is due to guidelines in place to prevent money laundering). Seeing as this is compensation for you, they should send the money to you

vikingaero

Many companies have a policy to only refund to the card that paid for the holiday as effectively the main contract is with that person. However most do it to recover credit card fees charged by the merchants bank.

Aginoth

Update...

I won...

They backed down and paid me by cheque after I threatened to take them to court for the money

baldelectrician

Just a little foot note.

I am a merchant (I have a business that takes credit cards) and it states I must refund by the method used when cards are used.

This is to stop people charging on card and asking for a refund on cheque (effectively a free cash advance). It is also an anti-fraud / money laundering measure. The banks get quite stroppy with retailers if they don't adhere.

Your MIL's credit card company should have procedures for this. When a card is in credit they usually refund to the account used to make payments.
There should be no charge for this (unlike cash advances)

I know it's after the event but I hope this helps others.