I like splitting payments in 3 to smooth the peaks and valleys cause by large spends.
That way monthly payments / cashflows are even.
But despite repayments being split into three… The refunds are not.
I know it does sound odd, but I would want to split refunds into three as well. Such that I don’t experience having to not make a payment one month, and have a very high repayment in two and three months.
Can I split the refunds into three as well?
Obviously I don’t speak for Tymit and compliance isn’t my profession, but unless Tymit are licensed for deposit taking (I can’t recall if they are when I last checked their license), this may prevent them from allowing this ‘feature’.
Also most card providers write into their T&Cs about a user not holding any positive balance and while strictly I understand this wouldn’t be a positive balance, it could be classed as such.
This may end up being an oddity of the wonderful Tymit benefit of splitting payments, when refunds are given. I’m super excited to find out the answer though so I’ll be sure to watch this space
I had a recent issue with a refund. I had selected the original transaction to be paid in 3 instalments.
I received the refund which took my card balance to zero, but Tymit were still expecting the 1st instalment payment. The app then claimed I’d missed a payment as I hadn’t (in my mind) overpaid.
The reply was:
Because the original transaction was put in instalments, when the refund came in, it didn’t affect the instalment plan, to give you the flexibility to use the refunded monies as you would prefer.
What this means is that if you receive a refund for a transaction that is in an instalment plan, we add the refund amount to your current bill, not directly to the instalment plan itself. This gives you more flexibility when planning your bills and repayments, as you can then choose to move whatever is left of the transaction you’ve been refunded for into pay in full, meaning you can have the refund applied to the full transaction, as well as being able to use the rest of the refund to pay that month’s bill.
That makes sense.
I know it was mentioned elsewhere that they would be working on improving refunds when this happened for another user so perhaps that’s on the short term roadmap.
I am not sure why deposit taking is brought up.
If the account is in the negative, it doesn’t become a deposit if the account is less or more negative.
When I have 300 split into three and have £100, £100, £100 due, and I receive a £30 refund. Currently I see my payments due as £70, £100, £100. I would wish for £90, £90, £90.
Because technically they would be holding a payment for future use. It’s one of the reasons credit card companies do not want to be paid above the balance of the latest bill.
Your mileage will vary and I guess we will find out.
Having just checked the CCA, I don’t now believe that this would be covered as a deposit in the instance of Tymit as there is specific wording for future payments e.g. in the case of balance transfer.
However as mentioned before, this has been picked up elsewhere and Tymit said they would be working to improve refunds further.