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Sunk | 20:15 Fri 26th Feb 2021 | Business & Finance
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A couple of months ago I was paying for my shopping at the supermarket and I realised I had left my regular credit card in my shirt pocket at home. Fortunately I had my emergency credit card in my wallet and paid with that. When I got home I made a payment of the amount to set my balance back to £0.
I got my bank statement last month and noticed the payment to my credit card had gone out, and also a Direct Debit for £50 even though I didn’t owe anything. I immediately cancelled the Direct Debit. I didn’t want £50 sitting on my spare card, and I couldn’t see a way of moving back to my bank account. So I went to a machine and drew out my £50.
Just got a credit card statement, and I have been charged £3 for getting my own money out.

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Have had credit balances on cards refunded on request to the linked bank account but it does take a couple of weeks
you do have to pay for cash advances (which is what this was) it'll be in your T+C
Sunk I would have thought ATM would advise you there was a charge payable to withdraw cash. On the rare occasion I've got money on my Barclaycard from an ATM, have always been advised there will be charge.
You wer eunlucky tho in that the cut off time must of fallen between the time of your purchase and the time of your repaymentAllso, am not sure where the £50 figure came from. There are usualy direct debit payment options you can choose such as pay balance in full, pay minimum payment, pay £x per month- you should change yours to something else
Are you saying you drew cash out using a credit card?
Sunk you won't do that again in a hurry will you;-)
Phone them up and ask them to reimburse you and tell us what they say. Good luck.
the other thing you could of dome is use your emergency card on your next shopping trip or filling up with petrol to clear the credit balance
Question Author
bobbinwales

I have had this card for a couple of years but never used it. When I got it they wanted Direct Debit set up for repayment and I put in £50.

Yes the screen did warn of a fee but I wrongly assumed that was for getting money out on credit, not my own money.

The card is already in the plastic recycle bin.
er credit card money withdrawals
they charge interest for three months so after be careful
after
and yes if that is the case then you will have agreed to it on getting the card

so you need to cancel and of course take into account the charges to come if any
Nearly all credit cards will charge at least 3% for cash withdrawls regerdless of balance.
Sunk worth having one in emergencies, as you found out to you cost. That's the difference between credit and debit cards. I used to have all my expenses on an exclusive card just for that purpose, was cleared every month.
Only in the most extreme of emergencies should you use a credit card to withdraw cash. It has left many a person in financial distress.
Question Author
PP,
I have today paid the £3 charge and my balance now says £0. But I assume I will owe a few pence interest next month.

I hate paying card fees and normally pay it off on the dot, so I’m kicking myself I got caught out by this. Taking money from me when I don’t owe anything seems highly dubious.

Going to set up a spare card on my iPhone.
You seem to misunderstand. You were not taking out your own money. If you are in credit that credit remains for you to spend (with retailers). It is not “cash in the bank”. I recently had a hefty refund for a cancelled holiday (£Thousands). I cannot now go and draw that down as cash without it being seen as a cash advance even though, like you, I had settled that bill many months ago.

Never, ever, draw cash using a credit card even if your account is in credit. It will cost you.

//The card is already in the plastic recycle bin.//

Make sure you’ve cut through the magnetic strip and the chip.
Think some retailers now charge to take a credit card, to offset their costs in taking them.
Question Author
Jackdaw33

I was trying to retrieve my own money, not borrowing on it.
Lesson learned.
Interest on cash withdrawals is charged from the actual date of withdrawal and not the statement date. It is the most expensive way of borrowing money, apart from loan sharks.
Question Author
NJ
I have cut it in half, but not the chip, so thanks for the heads up.
Thanks everyone for your comments.
tonyv I thought that wasn't allowed?
//Think some retailers now charge to take a credit card, to offset their costs in taking them.//

They used to Tony. They've not been allowed to since January 2018:

https://www.moneysavingexpert.com/news/2018/01/cards-fees-to-be-banned-from-saturday/

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