Refund On Closed Credit Card

[marje]

Hi, hope someone can throw some light on my query.

Last year I claimed PPI and charges on a credit card. It was approved and the amount I owed was paid and the account was closed. I also received a cheque for the balance.

Today I received a credit card statement from the company with a credit balance plus interest on the credit. I phoned them and they are going to issue me with a cheque to cover the credit.

My question is, how can there be a credit balance on a closed card account. As far as I knew the company had paid me what I was due to and the account was closed. Now, don't get me wrong, I'm pleased that I'm getting a bit more money from them, but don't want them to come to me in a few months saying they made a mistake and could they have their money back.

Anyone any ideas as to why a credit balance could happen on a closed account or has anyone had this happen to them?

Any help greatly appreciated.

[Old_Jim]

At the time of your award, they would have cleared the balance on your credit card account, but left an amount on the account to cover any pipeline transactions before sending you the cheque. You are now due than amount plus interest.

[boxtops]

Was it one of those cards where you got a money-back credit each year for using it? If so - perhaps the dibs came back to you after you instructed them to close the account. That's all I can think of!

[marje]

That makes sense Old Jim, didn't think of it as I was over my limit due to them putting charges on. Perhaps they do it as a matter of course.

No it wasn't that type boxtops.

Thank you both for your answer, much appreciated.

[boxtops]

I must admit old_jim's experience isn't mine - when I have paid off an account and closed the card, that's been the end of it, they've never retained any money. Perhaps it was some overcalculation of interest on the final month's statement?

Is it a lot? the easiest thing to do would be to ask them....

[marje]

Hi boxtops. There was no interest being charged on the account. It's a few hundred pounds which I'm not going to say no to. I really didn't think to ask what is was for at the time I phoned them, which is unlike me. I think I was too surprised when he immediately said they would issue a refund cheque! I'm not phoning them back as it costs too much. Maybe they'll realise their mistake and I'll get a letter saying I'm not going to get the refund. Time will tell.