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Topping up your credit card above your limit to purchase something?
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My skycard is in credit at the moment.
With the system problems they had they took a visa payment from my bank account card twice.
My limit is not showing positive, they have infact reduced the available credit by the corresponding amount.
I will spend the over payment in a month or so, so i am not bothered but if they ring or write to me telling me to do something about it they will be getting a complaint as they took the money twice from my card.I beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
I just rang up Halifax as i was thinking about making the purchase today and i asked them about the two year extended VISA warranty and they told me that Halifax does not offer this anymore. Lucky i double checked as i was going to buy a Amazon.com gift card and use that as part payment. If i would have bought it and Halifax would not have given me cover i would have had to return my laptop back to the US in the event of any repair work that needed to be carried out.
I think that i need to look around for a better credit card.0 -
A lot of cards will let you have a positive balance (it can hapen easily though refunds, making one-off payment too close to direct debit payment date etc) but if it is a large amount and/or you do it frequently you may be investigated for money laundering.
But, more importantly, you cannot generally spend more than your entire credit limit in one day regardless of what your actual balance is (exceptions to this would be lots of transactions under floor limit and delayed transactions from abroad).
I used to work for a CC company and frequently had to tell customers this, often as they were standing in the kitchen/car/holiday shop.:eek:0 -
This practice is fine for AMEX charge card.
Do you know if the money is insured though?
Many card companies do not insure YOUR money (credit). They only insure THEIRS (debit).
If your card is stolen or used fraudulently you could lose all your money.
My advice is to use it apraingly and for the shortest time possible,0 -
skyrider007 wrote: »This practice is fine for AMEX charge card. I have done it before and never had any problem.
That's a charge card. Credit cards and charge cards are two different animals.
We're talking about the effects of intentionally topping up a credit card beyond your credit limit, in order to increase its spending power.
You cannot do that with the AMEX charge card, because it has no fixed credit limit.People who don't know their rights, don't actually have those rights.0 -
Why would people assume that having a credit balance on a card means that spending is not covered by Section 75 of the CCA, 1974? Years ago (circa 1990) Beneficial credit card had in the small print that they paid interest on in-credit balances. So clearly there was one credit card (Egg money is a modern day equivalent) that didn't have an issue with in-credit balances.
What exactly does the CCA S.75 say about this?
Part 3 (b) seems to confirm that YB's sound suggestion will always work. Part 4 seems to remove any problem with the Halifax (or anyone else) over in-credit balances. It appears supposition only to assume that you cease to be a 'debtor' (and the 'creditor' ceases to be one also) whenever you make a payment onto the account which leaves a positive balance - I would base these terms on the existence of the regulated credit agreement - which doesn't blink in and out of existence whenever a - turns to a +75 Liability of creditor for breaches by supplier
(1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.
(2) Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (1), including costs reasonably incurred by him in defending proceedings instituted by the debtor.
(3) Subsection (1) does not apply to a claim—
(a) under a non-commercial agreement, or
(b) so far as the claim relates to any single item to which the supplier has attached a cash price not exceeding £100 or more than £30,000.
(4) This section applies notwithstanding that the debtor, in entering into the transaction, exceeded the credit limit or otherwise contravened any term of the agreement.
(5) In an action brought against the creditor under subsection (1) he shall be entitled, in accordance with rules of court, to have the supplier made a party to the proceedings......under construction.... COVID is a [discontinued] scam0 -
What is the best way then apart from topping up?0
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