Problem Weird Withdrawal Problems AVAtrade UK

[kamranav]

I had previously funded my account using credit cards. I withdrew some money back to the credit cards and the rest was lost during trades.
I have recently funded my trading account via bank transfer. I have however lost a tiny amount. I now requested to withdraw the remaining funds back to my bank account and i am being told its not possible due to AML.
So the money i lost when i funded with credit cards they want me to use my current funds to send that money to my credit cards first.
My credit cards have been cancelled and are with a debt recovery agency. I am being told by AVATrade to get letters from my credit card company to confirm they have been cancelled. They (CC company) will not do this as it is now in the hands of the debt recovery agency.
However why should my wire transfer funds have to go to my credit cards anyway? Surely that is Money Laundering.
I never thought this would happen but it is happening to me. No trust left with AVATrade anymore.

 

[FxMaster]

I had previously funded my account using credit cards. I withdrew some money back to the credit cards and the rest was lost during trades.
I have recently funded my trading account via bank transfer. I have however lost a tiny amount. I now requested to withdraw the remaining funds back to my bank account and i am being told its not possible due to AML.
So the money i lost when i funded with credit cards they want me to use my current funds to send that money to my credit cards first.
My credit cards have been cancelled and are with a debt recovery agency. I am being told by AVATrade to get letters from my credit card company to confirm they have been cancelled. They (CC company) will not do this as it is now in the hands of the debt recovery agency.
However why should my wire transfer funds have to go to my credit cards anyway? Surely that is Money Laundering.
I never thought this would happen but it is happening to me. No trust left with AVATrade anymore.

Did you talk about the same with customer support, if yes then what reply did you get from them?

 

[PanzerWang]

Generally, under anti-money laundering laws, brokers require A in and A out, which means that you can only withdraw the money into the way you deposit it. Maybe credit card deposits are a lot more money than your bank card deposits.

 

[kamranav]

Did you talk about the same with customer support, if yes then what reply did you get from them?

Yes i did and they have communicated the following through Email.

Dear Mohammed Naveed,
Thank you for contacting AvaTrade.

As per our previous communications, we can only return the sums deposited to source.
This is based on our legal obligations as a Regulated Financial Service Provider, which are confirmed within our Terms and Conditions.

The proofs of closure of your account provided is not from the issuer of your card but rather a 3rd party who claim they have been appointed by another 3rd party, who they claim have been given all interests and rights to your credit agreement.
This letter is not proof of their authority nor even if this is established do they have the authority to instruct or advise. As per this letter it does imply that payment can be made to the account but as noted they have no authority.

We would require proof from Clydesdale Bank (trading as Virgin Money), that not only are the cards closed, but the connecting accounts cannot receive any payments. Once we receive this, we would be happy to process your withdrawal to your nominated alternative method.

We appreciate that you have indicated that you are having difficulty in getting this from Clydesdale Bank (trading as Virgin Money) but as per our legal obligations, we require this to change the withdrawal method form the method used to deposit.

If you have any additional questions, try our extensive list of Frequently Asked Questions page or contact our customer support team through Chat, email or phone.
Sincerely,
Stanislav S
The AvaTrade team

The proof i sent them was that my card accounts are now with Debt company and i am paying them off through an agreement. Anyhow I came to the understanding that i will pay back 100% back to the 2 cards used and then i can withdraw to my bank. However then they go on to say i need to return 150% to the cards.

From 2nd Sept 2023 until 5th October 2023 I deposited £800 through various credit card transactions.

I also withdrew £100 on 8th September 2023 and £400 on 27th November 2023.

This would leave a balance of £300 to be returned to my credit cards.

Now can you specify which credit cards require which amount returning?

Regards

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Dear Mohammed Naveed,
Thank you for contacting AvaTrade.

Kindly note that 150.00 GBP have to go through CC * 4970/ 550.00 GBP via CC*6067.

 

[kamranav]

Did you talk about the same with customer support, if yes then what reply did you get from them?

The Rubbish from AvaTrade continues
Dear Mohammed Naveed,

Apologies but can you clarify exactly what you are requesting.
The amounts have already been supplied.

Please note again, the requirement to return a deposit to source is covered under multiple pieces of legislation (including Anti Money Laundering legislation) and part of the regulations that AVA Trade is subject to. Your account with Clydesdale Bank (trading as Virgin Money) is also subject to similar regulations and contractual Terms and Conditions.

We also now have additional obligations under the Consumer Credit Act 1974, based on the information supplied by you. As per the information supplied the accounts with Clydesdale Bank (trading as Virgin Money) are still active, and for AVA Trade to conduct any withdraw to any source it must be done to CC * 4970 and CC*6067 for the amounts deposit first or to the verified connected Bank Account at AvaTrade's discretion.

As per correspondence supplied by you (from a 3rd party source that does not reference the actual cards) the accounts are still open. We have yet to receive any proof from Clydesdale Bank (trading as Virgin Money) to show the accounts are closed or referencing CC * 4970 and CC*6067 . The correspondence supplied by you dose explicitly state that only the credit facilities available to you have been suspended and all other Terms and Conditions remain in force. As such we remain obligated to return the deposits to source, until we receive some documentary proof from Clydesdale Bank (trading as Virgin Money) to satisfy our legal liability and to allow us to change withdrawal methods.


Please note these regulatory requirements have been codified within Section 40.1 (iii), (v) and (vi) and of the AVA Trade’s Terms and Conditions that was agreed be you on the 1st September 2023.

40.1 Customer further acknowledges and accepts AvaTrade’s procedures with respect to withdrawals and deposits to accounts as set forth below:

(iii) Credit card deposits may be, according to credit card companies' regulations, returned to the same credit card when a withdrawal is performed. A withdrawal to a bank account where initial deposits have been performed by credit cards will be executed back to credit card or to the bank account at AvaTrade's discretion. Withdrawals to bank account may take a longer time period, due to additional security procedures.

(v) When depositing by a Bank Transfer, as required by anti-money-laundering regulations, Customer is required to use a bank account, which is in Customer's country of residence and in Customer's name. Any withdrawal of funds, from Customer's AvaTrade account to a bank account, can only be refunded to the same bank account that the funds were originally received from.

(vi) Alternative payment methods (internet payment vendors; money transfer services; etc.): when depositing funds using a facility other than credit cards and/or banks, you agree to, and acknowledge being bound by, the regulations and rules of such service, including, but not limited to, fees and other restrictions. AvaTrade, at its sole discretion, may execute withdrawals to a facility other than the facility used for the original deposit, in accordance with anti-money-laundering regulations.
If you have any additional questions, try our extensive list of Frequently Asked Questions page or contact our customer support team through Chat, email or phone.
Sincerely,
Tatiana P
The AvaTrade team

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Please provide a breakdown of my Credit card deposits and withdrawals.

My trading account does not specify which cards were used for which amount.

I require the breakdown from you.

Regards

Mohammed Naveed

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Dear Mohammed Naveed,
Thank you for contacting AvaTrade.

Please specify exactly what do you mean by breakdown ?
Do you want us to send you how much withdrawable amount you have left to the respective card ?

If you have any additional questions, try our extensive list of Frequently Asked Questions page or contact our customer support team through Chat, email or phone.
Sincerely,
Martin A
The AvaTrade team

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Dear Mohammed Naveed,
Thank you for contacting AvaTrade.

The total deposits
via ***9067 is 700 GBP and
via ***4970 is 100 GBP.

When depositing with debit/ credit cards our policy is to refund your Credit Card up to 100% (150% when possible) of the Total amount deposited via that Credit card first, after withdrawing the Total amount you deposited with that method, the rest can be requested to either E-wallets or by Wire transfer.

Total amount withdrawn via ***6067 is 500 GBP.

Withdrawal limits are 1050 (700 x150%) GBP for ***6067 and 150 GBP for ***4970.
So now 150.00 GBP have to go through CC * 4970 and 550.00 GBP via CC*6067.

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Dear Mohammed Naveed,
Thank you for trading with AvaTrade.


When depositing with debit/ credit cards our policy is to refund your Credit Card up to 100% (150% when possible) of the Total amount deposited via that Credit card first, after withdrawing the Total amount you deposited with that method, you can request to withdraw to either E-wallets or by Wire transfer.

First you need to reach the withdrawal limit to your cards and then you would be able to withdraw via wire transfer.
If you have any additional questions, try our extensive list of Frequently Asked Questions page or contact our customer support team through Chat, email or phone.
Sincerely,
Tatiana P
The AvaTrade team

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You say 100% or 150% where "possible".

Why should my wire transfer money be going to my credit card?

What part of AML regulations is this?
What kind of policy is this?

I request you to escalate this to your head of compliance for a response on this matter.

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Dear Mohammed Naveed,
Thank you for contacting AvaTrade.

Withdrawal limit is 150% of the Total amount deposited via that card.
***6067: 700 + 350 - 500 = 550
***4970: 100+50 =150
If you have any additional questions, try our extensive list of Frequently Asked Questions page or contact our customer support team through Chat, email or phone.
Sincerely,
Tatiana P
The AvaTrade team

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Thank you for the information.
According to your explanation

£200 needs to go to 6067
£100 needs to go to 4970

Thereafter I can withdraw via Wire transfer

 

[kamranav]

Did you talk about the same with customer support, if yes then what reply did you get from them?

After all the above Emails a representative called me again and kept insisting it was my card provider that required 150% back to my card. I queried this as a nonsense condition and challenged the representative.

He then got angry and eventually crumbled and admitted that this is AVATrade policy. I then questioned what kind of stupid policy is this? Not only am i putting more money back on my credit cards than i originally used but it is from my Wire Transfer Funds.

He then said he would escalate it again and thereafter the last communication is that this has been escalated.

 

[FxMaster]

After all the above Emails a representative called me again and kept insisting it was my card provider that required 150% back to my card. I queried this as a nonsense condition and challenged the representative.

He then got angry and eventually crumbled and admitted that this is AVATrade policy. I then questioned what kind of stupid policy is this? Not only am i putting more money back on my credit cards than i originally used but it is from my Wire Transfer Funds.

He then said he would escalate it again and thereafter the last communication is that this has been escalated.

Is recording a call legal in your country?