Why does it take so long for refunds to come through?

[SafeMove]

Asking on here because I am clueless about the process and wondering if someone with knowledge of issuing and administering refunds can shine a light?

Just curious because we have had 3 instances this week within my family where we are expecting refunds and we have hit a brick wall with actually getting the money back? First was on a house sale completion - we are talking thousands, completion was a week ago today. Completion statement issued. Money was accidentally paid to estate agent not family member. Solicitor can 'only apologise' and is trying to sort it out. Gave them a deadline of 4pm today. Not hopeful. Second is DS1's university accommodation - he moved out of his halls two weeks ago as he has moved university from January - so we are waiting on a months rebate of approx £500 and £250 deposit. They keep saying end of week - hasn't happened today. Third example is my very elderly gran had 2k of credit on her gas account - whilst struggling to manage on her pension for basics such as food. I rang the gas company and firstly they told her to use it as 'an overdraft' for rising energy costs, when I challenged this and said that my gran needs that money now, the woman on the phone got shirty and said she will 'have to see if they can approve a refund'. They agreed to refund 1K into my grans current account 3 weeks ago. Nothing.

Just find it infuriating that companies are holding on to people's money when I can 'ping' money across from my current account in seconds? This is not a case of companies issuing 'their' money, it's money they have been paid by customers and they are failing to return in my eyes? Are they sitting on money to get interest of am I being cynical?

*or am I being cynical?

Completely agree. I would speak to your Gran's energy company again - or DM they via Twitter, etc as they tend to be very responsive there.

I work in this field (deliberately vague). There is no technical reason for a delay. There might be administrative reasons for a short delay - say refunds must be approved by Manager XYZ. Any delay of more than a week = the company want to hang on to your cash for as long as possible for their own cash flow reasons / they are hoping you will go away.

@DewinDwl thanks. Thought so. It really needs regulating. The fact that energy companies are reporting record profits whilst simulatneously holding onto people's money is outrageous.

Because in most cases they only have a certain amount of staff who have the controls to refund money and in most cases you are or the only customer looking for a refund as such.

It’s ridiculous. Just spent 5 months battling to get an overpayment of council tax back (moved out of county area) and am currently on the sixth month of attempting to get back an overpayment of income tax from the government. Both admit they owe it - just don’t want to actually pay me it.

Yes, chase them in public and highlight an elderly woman in poverty while they have coerced her into overplaying to the tune of 2k.

I find when people won't refund, a public shaming gets them to act very quickly.

It’s the same with most companies I find, for small amounts too. As soon as you order something, they take the money, but you might not get the item for several weeks (Brand Alley, I’m looking at you). Then, if you take or send it back, it takes several more weeks to refund. Meanwhile they’ve had the benefit of your money.

Its all put know and investment fund for a few days, they constantly put money in and out of such fund to keep a balance on which interest grows.

Same reason money takes days to clear when paid into a bank account

I am well aware that there will be many people waiting for refunds - this should surely allow them to streamline the process surely? Like they do with payments?

I think that big companies like to keep the money in the bank for as long as possible; after all it's earning them interest. I'm with Octopus and in 2020, I was more than £850 in credit. I asked for £600 back and it was done by close of business.

There's no genuine reason why they should be keeping her money.