Penalty charge refunds - do they have to be credited to the card account?

[chrissiej]

Hi, I am just issuing letters before action on a number of credit cards for refund of unfair penalty charges plus compensatory interest and have asked for the refunds to be made by cheque. I expect they may just credit them back to the card account, if they do so can I insist on receiving a cheque instead? I would appreciate anyone's views on this so I am prepared for their responses. Many thanks!

[jax007]

Re: Penalty charge refunds - do they have to be credited to the card account?

Do you have any outstanding balances on these cards??

You can definitely ASK for a cheque but I don't know the legal slant on whether you can INSIST on a cheque.

Also once they have credited the account I think it's pretty nigh impossible to get it changed.

I have just had a refund on an account with a NIL balance and it has been closed so I have had to write and ask them for a cheque AND insist they don't charge me for the cheque!!

Hang on in there - there are others on the site who do have more knowledge on this issue.

All the best
jaxx

[chrissiej]

Re: Penalty charge refunds - do they have to be credited to the card account?

Thanks - yes I do have balances on the cards so I suppose its inevitable they will credit any refunds to them. But worth a try to ask for a cheque!

All the cards have suspended interest and charges except for three, so thinking about it, on those its better to have the credit back to the account as I'm still paying interest on those charges years later ......... !!

The game plan is to get the balances down as far as I can, get all interest and charges stopped and then make a F&F offer.

I will start a new thread on F&F offers as I am not sure what the going rate it - what sort of settlements they seem to go for as their minimum.

This is a fantastic site and I am really appreciative of all the information I have picked up in the last couple of days .... I've gone from feeling desperate to hopeful ....... !! :beagle:

[cappo]

Re: Penalty charge refunds - do they have to be credited to the card account?

Thanks - yes I do have balances on the cards so I suppose its inevitable they will credit any refunds to them. But worth a try to ask for a cheque!

All the cards have suspended interest and charges except for three, so thinking about it, on those its better to have the credit back to the account as I'm still paying interest on those charges years later ......... !!

The game plan is to get the balances down as far as I can, get all interest and charges stopped and then make a F&F offer.

I will start a new thread on F&F offers as I am not sure what the going rate it - what sort of settlements they seem to go for as their minimum.

This is a fantastic site and I am really appreciative of all the information I have picked up in the last couple of days .... I've gone from feeling desperate to hopeful ....... !! :beagle:

i,m claiming a missold ppi from capital one don,t know if i,ll get a decision in my favour yet as it,s still with fos but if i do i,ll put it towards my outstanding balance (about 3k) i think whether they give you a cheque or a credit to your account is a moot point and will depend on whether you are in arrears,the jury is split on what a lender will do but by all accounts they generally try to do it as a credit to the account and then give you any remaining balance as a cheque.

[WendyB]

Re: Penalty charge refunds - do they have to be credited to the card account?

If you have a balance on the account they will credit any refund towards the outstanding balance, otherwise they will send a cheque.

Although when I got my OH's charges back from Natwest about 3 years ago they sent a cheque instead of clearing the balance, which was a bit silly of them really, and I think it must have been a mistake on their behalf.

[cappo]

Re: Penalty charge refunds - do they have to be credited to the card account?

If you have a balance on the account they will credit any refund towards the outstanding balance, otherwise they will send a cheque.

Although when I got my OH's charges back from Natwest about 3 years ago they sent a cheque instead of clearing the balance, which was a bit silly of them really, and I think it must have been a mistake on their behalf.

wendy just a query what is the orange seagull club?

[WendyB]

Re: Penalty charge refunds - do they have to be credited to the card account?

Long story, I'll pm you cos otherwise it will take over the thread lol

[pompeyfaith]

Re: Penalty charge refunds - do they have to be credited to the card account?

What does it say on the terms and conditions of the account.

I am of the believe that they should only do this if there are arrears on the account otherwise it should be returned to you.

But as I say I would read the terms and conditions