What Happens if You Accidentally Overpay Your Credit Card Bill? - News-Credit-Mortgage-Coin


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Tuesday, April 7, 2020

What Happens if You Accidentally Overpay Your Credit Card Bill?

If you have a negative balance in your card account, you can request a refund of the excess money by law


What if you find that you accidentally overpaid your credit card bill? If your card has excess or negative balance, federal law offers your issuer ways to resolve the situation, including crediting the amount of the overpayment.

In difficult times, people like to hold onto their money. This is a time when the coronavirus pandemic is in full swing.

What if you find that you accidentally overpaid your card bill? This is a slight mistake, especially if you press the wrong keys when paying online.

The situation can also arise if, for example, you get some money back for a returned purchase and make the full payment on your invoice. Fortunately, there are ways to get this overpayment back.

What happens if you have a negative credit card balance?

  • If your card has excess or negative credit, the Truth in Lending Act provides opportunities for your card issuer to address the situation.

  • It could immediately credit the amount of the overpaid amounts to your account.

  • If the issuer does not take any action and you send a written request to your card company requesting a refund of the money, the issuer should respond to the request within seven days of receipt. You can also make an electronic or oral request for a refund.

  • If you have not taken any proactive steps, the issuer can also try in good faith to reimburse part of the overpayment still outstanding after six months. For example, you could write a check or credit your bank account. If the bank cannot find you from your last known address or phone number, it does not need to take any further action.

How to request a credit card overpayment refund
That sounds simple enough. For example, the American Express online help center has an answer to the frequently asked question: "How do I request a refund?"

According to the issuer, you can request a refund for an overpayment via your online account. After selecting the account to which you made the payment, select "Open payment dispute", then "I have funds in my account" and click "Next".

And Capital One advises online that you can write or call your overpayment if your issuer does not automatically refund it to get it back. In addition: "If you would rather leave the overpaid amount in your account, this is like a credit in your favor. All new fees up to the amount you overpaid will be borne. "

There could be slips

However, it doesn't always seem easy to get a refund. According to a complaint received by the Consumer Financial Protection Bureau last December, a consumer overpaid their credit using a BBVA credit card.

Although the balance on the card statement was only $ 21, they paid $ 170 more. When they called and asked for a refund, the customer service representative assured them that they should receive a check within seven to ten working days.

When they followed up, BBVA said that the money had been electronically credited to their checking accounts through an intermediary, as this was how BBVA had received the money.

BBVA advised the customer to contact their bank. The representative also mentioned that this happens all the time. According to the CFPB database, this complaint was ultimately resolved with a statement to the complaining consumer.

Can I cancel a credit card payment if I change my mind?

What happens if you have paid your card balance in full and not just the minimum amount due and are thinking about it? This does not fall under the legal protection of the truth in credit law for an overpayment.
In these cases, it is at the discretion of the issuer how to proceed if you request a refund of the money that you have paid above the minimum amount due. Issuers Bank of America, Discover and American Express did not respond to questions about how to deal with such situations today.

Talk to your issuer and see if they can reimburse you for the money you paid over the minimum payment due. It is in the issuer's interest that you maintain a balance so that interest expenses can be charged, so you may find that issuers are willing to respond to such request.

And if you need the money to make other payments and find that paying interest on the balance you're paying is cheaper than getting the money from other sources, it could work in your favor.

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