Credit card refund:What’s this bill?

A Canadian manager is embroiled in a dispute with a bank which refunded money he had paid to clear and close a credit card, then demanded the money back with interest and late payment fees.

Asim Sukhera used his Citibank credit card on June 4 to book Emirates tickets costing Dh18,940 for a holiday.

A week later, he wanted to close the card. The bank wanted Dh30,000 to clear the card, including the plane tickets. He paid and got a clearance letter.

‘Overpayment’

But unbeknown to him, the airline’s transaction had not been processed. While he was on holiday, the bank refunded the ‘overpayment’ to his regular account. A week later, on July 1, the airline’s bill went through.

Sukhera came home to find a demand for money he had already paid on a card which was already closed. Plus interest. Plus a late fee.

"I’m ready to settle the account, but I’ll never pay the late fees – it’s not my fault," he said. "Obviously someone goofed up at the bank. What if I was out of the country a lot longer? The bank could have filed a case against me; maybe I would have been arrested at the airport on arrival.

"I’ve been chasing the bank since then – faxes, e-mails, customer service hotlines, branch office visits – but no one wants to meet me and clear things up."

A Citibank spokesman said they had been unable to contact Sukhera since XPRESS took up his complaint. The spokesman confirmed they had refunded part of Sukhera’s payment, then billed him after the card was closed, but blamed the airline for submitting transactions late.

"No bank can prevent late postings being levied on the card," the bank said in a statement. "For example, if we avail of a service today and give the merchant instructions to bill the card, and block the card before the merchant processes the payment, the cardholder will still be liable if he has signed for the service."