Refunds of $3.3m to be paid to thousands of credit card holders

Customers of at least four credit card providers over a 23 year period could be eligible for a refund.

Refunds of $3.3m will be paid to around 39,500 customers who hold credit cards with Citibank, Virgin Money, Bank of Queensland and Suncorp, the financial regulator has revealed.

The refunds will be provided to people who held a credit card with any of the aforementioned providers since 1994, although not every customer who held an account during that time is affected. 

The refunds are the result of an error caused by credit provider Citibank, when it failed to refund money it owed customers after they closed off their credit cards.

Citibank reported the issue and has since cooperated with the financial regulator, says Peter Kell, deputy chair of the Australian Securities and Investment Commission (ASIC).

"Customers should be confident that when they close an account, they are refunded any outstanding balance," says Kell.

Changes to Citibank's systems have been made to make sure cheques are automatically issued to customers who are owed money when they close an account.

The customers affected will receive a letter from Citibank by 30 November 2017, ASIC says.