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Overpaying a credit card for Consumer protection
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WelshAl
Posts: 4 Newbie
in Credit cards
Can you overpay a credit card so that you have the consumer protection offered by the credit card and more money than your credit limit?
I've got a £200 limit on my credit card. Can I pay off the £200 and another £100 and still rely upon the purchase protection, fraud and theft protection
?
I've got a £200 limit on my credit card. Can I pay off the £200 and another £100 and still rely upon the purchase protection, fraud and theft protection
? 0
Comments
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Section 75 won't apply on a purchase made while your credit card has a positive balance, since section 75 only applies to credit. If your credit card has a positive balance you're not using credit (for all of the purchase.) The fact that some of the money is credit would appear not to affect this.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Interesting - so how would this affect something like Egg Money? If you're operating your account how Egg intended, then you'll probably have a positive balance for at least some of the month. Does this mean that only purchases you make when you have a negative balance are covered, and those made when you have a positive balance aren't?
That would be very confusing.0 -
Not sure about Egg money, since it's different to most credit cards in that, as you point out, it is designed to carry a positive balance. A quick Google search only turns up this thread and one a few years back with Martin saying they were covered by Section 75 but not explicitly mentioning the positive balance.
Time for a secure message I think....Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Why not just pay £200 (your credit card limit) plus £100 cash then clear the balance when it becomes due. You have the cash available so doing what I suggest would give you the protection you require and allow you to hold on to £100 making interest hopefully until you need to clear the £200 debit balance.0
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Thank you for the replies.
I can't pay cash online...
So is it not the same for every credit card, if one 'product' from Egg isn't the same as the others, it can't be used in the same way?.
I thought the consumer protection was the price the companies paid to make the money from the interest. So if Capital One's £200 is protected but my £100 isn't, how do they tell which 2/3 of the jacket has fraud protection?.0 -
Paul_Herring wrote: »Not sure about Egg money, since it's different to most credit cards in that, as you point out, it is designed to carry a positive balance. A quick Google search only turns up this thread and one a few years back with Martin saying they were covered by Section 75 but not explicitly mentioning the positive balance.
Time for a secure message I think....
Well I've finally had a written reply off Egg about this. The short answer would appear to be that you are not covered under Section 75 when spending on Egg while in a positive balance. However...Egg wrote:Your Complaint[sic] - our resolution
Dear Mr Herring
Re: Your Egg account: <number>
Thank you for your recent telephone call[sic] regarding the problems you have experienced. I have taken personal responsibility for resolving this for you.
Firstly, please accept my apologies for any inconvenience this matter may have caused.
I have investigated the situation and am pleased to be able to confirm that your complaint has now been closed.
What I have done to resolve your complaint.
In your Secure Message dated 11 September 2008, you have asked if your Egg Money Card was in credit, would you still be covered under Section 75. I have today spoken to our Disputes Team who deals with these matters and they have confirmed it all depends on what you are claiming for and why. So I am sorry to inform you but I am unable to provide you with an exact answer to your question. They have suggested that you could take legal advice if you wish to obtain an exact answer.
Please be aware that under the Egg Money terms and conditions, you are able to dispute any transaction you wish. This will be dealt with by our Dispute Team who will then investigate the transaction and report back to you with their decision.
Even though we have been able to resolve your complain, I still need to ensure that you're aware of your rights in relation to a complaint against us.
You now have six months... <FOS stuff elided.>Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0
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