I paid off my HSBC credit card in October 2020 and closed the account.
Later, Amazon and Enterprise Rent-a-Car issued refunds on the closed account. I have provided HSBC with my account information to refund money to my bank account.
However, HSBC didn’t send me a check, nor did they refund me through my bank account.
What should be done in this situation and how can I get them to give me my money back? – IR, via email.
Our reader closed a credit card in October 2020, but later received refunds from two companies and struggles to get the money back
George Nixon from This is Money, answers: While not a new problem, this particular situation can affect a much greater number of people right now.
Last year, massive numbers of vacations, experiences, and other major purchases were canceled due to the coronavirus, with consumers likely putting them on a credit card for the protection it provides.
And with Britain’s corporate credit card balance down 16.2 percent between December 2019 and 2020 to £ 58.4 billion, it’s possible that more people like you have closed their cards and the need to rely on plastic to purify.
But doing this before paying any refund due to those bills could cause consumers one or two problems.
As mentioned above, this is not a new problem. A quick Google search reveals that in 2018 one person waited two months for a £ 450 refund from Amazon for an Xbox after it was paid into a closed Halifax account.
After the money was paid back in October, it was finally found by the bank in December.
Unfortunately, in that case, the consumer was never given any explanation as to where it was ultimately found, having previously been told by Halifax that the money could not be traced “without an original strain code and account number.”
Meanwhile, a similar thing happened in May last year with a consumer receiving a £ 2,138 refund from Airbnb on an old Lloyds credit card, which had been replaced after the holder became a victim of fraud.
Their case was resolved after they wrote The Guardian, who were told that the money had been “placed in an unallocated cash account.”
This gives an indication of what needs to be done in your situation.
although Adam French, from the consumer group Which?, stated that your old bank or card provider should “ put a refund into your new account after you provide the details, ” clearly this isn’t always the case.
Such refunds are usually held in an ‘unallocated funds’ or ‘ledger’ account if they cannot be linked to an active account.
Nicky Kelvin, content director for credit card and travel website The Points Guy UK, said: “This is definitely a tricky situation. If someone closes a checking account through the Current Account Switching Service, there is a ‘redirection’, meaning money sent to such an account will be forwarded to the new bank and new account details – unfortunately that is not the case with credit cards . ‘
But unfortunately, since they have the money in their hands, HSBC remains the best port of call even if they don’t seem to respond.
“ The best suggestion is to continue to sue HSBC, escalate the complaint as much as possible, and try to both email and call so you have the situation in writing, ” he added.
Alternatively, it may be worth trying out the companies that owe refunds and asking them to send them a check, though Nicky noted that “ they’re only allowed to do that if HSBC has refunded the money to them, which they after can do for a certain period ‘.
For this, it would be best to provide Amazon and Enterprise with as much detail as possible about your original purchases from them.
This can be an order or customer reference number, a billing address and details of what was purchased.
If none of that works and you still don’t hear from the bank, both Adam French and Nicky Kelvin note that you can file a complaint with the Financial Ombudsman Service.
It may take a while, but you should eventually get your money back.
In answer, HSBC said in a statement, “A customer who has closed their credit card would be entitled to any refunds that are subsequently returned to the account.”
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