Consumer complaint received 2022-06-09
Company: BARCLAYS BANK DELAWARE
State: MD
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
On or about XX/XX/2013, I entered into a cardmember agreement for a Barclays Black Card credit card account with Barclays under an open end consumer credit plan. I later converted the credit card into a Barclays Titanium credit card. The credit limit was set at {$16000.00}. 

Barclays has engaged in improper and unfair and deceptive business trade practices. Specifically, it permits a merchant to accept its credit card for purchases without requiring the merchant to issue the credit for returned purchase to the original method of payment used at the time of purchase, and permits a merchant to accept the credit card and then issue a credit towards a different method of payment other than the original Barclays credit that the the consumer used at the time of the purchase. This improper, unfair and deceptive business practice by Barclays has exposed me to financial losses. 

For example, if the entire Barclay credit line on my existing cardit card of {$16000.00} was used to make a purchase, and that purchase was later returned to the merchant, Barclays business practice would be to allow that merchant to issue a credit for that returned purchase towards an entirely different method of payment other than the original Barclays credit card used for that purchase, and Barclays do NOT require ANY merchant to credit purchases back to the original Barclays credit card used for the transaction. In other words, the {$16000.00} could be placed on a gift card, or cash could be given, or the merchant could put the amount on an entirely different credit card with another unrelated Bank and no credit for the purchase would ever be placed back on the Barclays credit card by the mechant. This is risky business because it not only exposes the bank to loss but it also exposes me, as a consumer, to financial loss. This also could be used to circumvent the cash advance feature on the Barclay credit card. For example, a purchase for {$16000.00} could be made ( in lieu of a cash advance ), and that the purchase returned to the merchant, and instead of issuing a credit back to the original Barclays credit card used for that transaction, the merchant is free to give cash back or place the entire amount on a gift card, and under Barclays ' business practice this would be acceptable. 

Such was the case with purchases that were made with the use of my Barclays credit card with two different merchants. For example, one merchant charged a purchase of {$32.00} towards my Barclays credit card, the merchandise was returned, and instead of issuing the credit back to the Barclays credit card that was used for that transaction, Barclays permitted the merchant to issue a gift card for the return instead. Another merchant charged a purchase of more than {$140.00} towards my Barclays credit card, the merchandise was returned, and instead of issuing a credit back to the original method of payment, Barclays permitted the merchant to issue the credit towards an UNKNOWN credit card number with an ENTIRELY different card issuer, that was NOT mine, and as a result, I was defrauded by the merchant of {$140.00}, and Barclays permitted this to happen without taking ANY actions whatsoever to recover the credit back towards the original method of payment. Again, this business practice that Barclays has engaged promotes merchant FRAUD against consumers, and Barclays aids and abets in it by permitting merchants to engage in this type of deceptive conduct, thereby placing me at a further financial risk. 

I am certain that this violates Banking laws, if not, mastercard international regulations.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation