In credit on cc, what happens when I close ac

F

Fauve

Registered User
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82
Hi
Just a quick question, (again).
I want to close cc ac with Halifax, for various reasons.
We are a minor amount in credit (approx €50).
What happens when I close account, will they send funds to me or does it get lost in the cc abyss somewhere?
Should I spend it before closing account.
Thanks in advance for any help.
 
Read your card terms & conditions to see what cover, if any, there is for credit balances.
 
Hi
I suspect it is very unlikely you'd get it back without a long drawn out and painful process, if even at that (even without knowing the t&c with your account). Life is too short.
You should spend spend spend!(the €50, that is!)
Nicola
 
Sorry - ignore my first post as I misunderstood the question. Probably easiest to spend it but remember that you will be charged €30 annual CC stamp duty so you only really have €20 to spend. If you switch to another CC then you will get a letter from Halifax to give the new card provider so that they don't charge you the same SD again for the same CC tax year (starting in April). In short - spend €20 and then close the account and the remaining €30 will cover the SD which will be charged on closure.
 
Oh! I never even thought that having a balance in credit would be a problem. I'm switching to a different visa card but with the same bank, and I'm €100 in credit. Should I spend the €100?
 
Ok, excellent, thanks for all advice.
Spending it will be no problem whatsoever.
Regarding the €30 cc charge, this was debited from my account on 1 April 08.
Was that for last year()7-08) or the coming year?
I had already sent a letter to Halifax from previous cc company stating that we paid govt duty (€30), so I assumed the new €30 was for this year (08-09).
Very confused about this.
Thanks for all advice
Fauve
 
Hi
The charge is paid in arrears ie, you've just paid for 2007/08. If the card is still active now (ie hasn't been cancelled since before April 08), you will also be liable for €30 for 08/09 as you've gone into the next year, so to speak.
So looks like it might be €20 you have after all.

Nicola
 
Thanks for that NicolaM.
I used to have cc with BoI, switched to Halifax end of 07.
I got a letter from BoI stating we had paid govt duty on BoI card which they debited before closing the account.
I sent this letter to Halifax to advise them that we had paid duty on the BoI card in Oct 07.
If Halifax debited cc in April 08, does this mean that I paid twice for year 07/08?
(Had previously paid €40 to BoI on 2April07 for year 06/07).
Fauve
 
Hi Fauve,
From personal experience, I cancelled an MBNA credit card in late 2007, and they gave me a letter stating I had paid the government duty (same as you got from BOI) for 07/08.
As far as I know, if I had, after closing the MBNA card, opened another card in the same chargeable year (ie before April 08) that letter would have meant I wouldn't have been liable for the second credit card fee, until after the first of May 2008, in which case the fee would be for 08/09, and shouldn't be charged until 2009.
This is not the case if you have 2 credit cards on the go at once , as you would be liable to pay twice then.
I think from what happened to me, it seems that Halifax may have made an error with your account, unless for some reason they were charging you in advance, not in arrears for 2008/09 (incorrectly).
You need to contact them to ask (and again, get it in writing:I advise this after my own experience of a long paper trail from MBNA, about exactly the same thing you are asking about, which is still waiting to be resolved. At least everything is in writing though, so there is proof that all was paid up to date)

Nicola
 
You might think so..but....have a look here
"Cash advance fee
This is a transaction fee charged each time you make a cash withdrawal on your credit card. Some providers charge this fee even if you have already paid enough cash into your account to cover the withdrawal amount. "

Nicola
 
Thanks for that info NicolaM, will be on the case tomorrow am!

uiop, exactly what NicolaM said. Halifax charge a cash handling fee even if you are in credit.
Fauve
 
Hi again
Ok, problem solved I think, though still a little confused as the Halifax people tell me that the letter from BoI was for yr 06/07.
So the €40 I paid in April 07 was for 06/07..?
But the problem is here..I was main cardholder on BoI card, when we switched hubby had to become main cardholder as our circumstances had changed, (I became full time at home with kids person during lifetime of BoI cc..no income etc not good for application to Halifax). The Exemption letter has to be in the name of the main cardholder, otherwise it is no use.
(Even though I am named second cardholder on Halifax card, plus can discuss card details etc with customer services etc.)
So for future reference, main cardholder it has to be for Exemption letter to be of use. I presume this is the same for all credit cards?

Do you ever have that "why did we choose this road?" feeling......?

Thanks for all input.
Fauve
 
Hi Fauve
The payment in April 07 would have been for 06/07 time period. But the one you paid in October 07 would have been for 07/08.
Interesting about exemption letter, I had never heard that.
So are you saying you'vr had to pay another €30?
Nicola
 
Hi there, I used to work in the credit card centre for a well known bank as as far as i know(although i didnt work in this particular area....) you are required to pay the government levy upon closure of any cc account, and any outstanding monies on your account will be refunded to you they usually send a cheque out! Best thing is to ring the helpline no on the back of your Credit Card the customer service team there will be able to best advise you!
 
Oh and if its your money i.e you have a credit balance, and you withdraw it there should be no fee! but that might not be the case for all banks!
 
NicolaM said:
Hi Fauve
The payment in April 07 would have been for 06/07 time period. But the one you paid in October 07 would have been for 07/08.
Click to expand...

Yes this is what I thought, and not only that but I paid €40 on closure of BoI cc account, and they refunded €10 when budget change came in, which in my mind definitely makes it 07/08.
The Exemption letter is in my name anyway, so it doesnt make any difference, though I did query this with BoI when I closed account and they said it shouldn't make any difference and that it should be accepted by Halifax.(Hubby was second cardholder on that account, so both names were on both cards all the time).

So are you saying you'vr had to pay another €30?
Nicola[/quote]
Yes and not only that, but when I close the Halifax account they will whack me with another €30 for year 08/09.
So there is my credit balance more or less sorted.

I rue the day I discovered Halifax!

Shellz, Halifx definitely charge a % cash advance fee, I queried this, as my first course of action would be to withdraw the money.
We live and learn I suppose but v.annoying.
 
Shellz, Halifx definitely charge a % cash advance fee, I queried this, as my first course of action would be to withdraw the money.
We live and learn I suppose but v.annoying.[/quote]

Yes all banks charge for cash advance, but have you inquired about withdrawal of a credit balance? Thats a different story because its your money. Now i'm no expert on Halifax but it seems very unreasonable to charge you for withdrawing your own money!
 
Yes I agree very unreasonable, I queried specifically withdrawing a credit balance.
They have actually said that if we close the account they will send the money on..but the lady I spoke to didin't seem too sure what "credit balance" meant so I wasn't inspired.
Fingers burned on this occasion!
 
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