Credit Card Balance Transfer Discussion Area 2

I'm not convinced there's anything illegal here. Last year Beneficial were having problems with a transfer of mine to amex..they wanted to issue me a cheque any sort it out myself! I don't think they care where the money goes as you as you end up owing it to them. In the case of paying money into a bank account to service a legitimate overdraft, there may be a brief time in the month when that account is in credit eg just after you get paid. it may not last long but yor are still in credit. If your BT happened to arrive that day then we are implying this would also be illegal. ???

I'd say Egg HAVE gained something. In the couple of days between you seeing the money arrive at Egg and moving it out again they have had use of your money interest free. It briefly reduced their debts from all the money they have lent out and cut their costs.

Not much I grant you, but they certainly haven't lost out. That's why I don't think Egg care very much. Perhaps one day the other credit card providers will force SBT providers to stop allowing transfers to bank accounts, but I don't think there is any incentive for them to stop it by themselves.

Sorry if I have opened up a can of worms !

I don't think the fact that Egg take receipt of the transfer is proof positive that the action is legal. It is not after all Egg who are the potential victims of the fraud.

In johnlew's opinion the fraud takes place when you ask the third party card company to transfer a debit balance of £10,000 from your Egg card to their card. You are certainly lying about your financial position (though only to make it appear worse than it really is). You are also in contravention of their Ts and Cs.

I am not sure this necessarily makes the practice illegal though..... "I'm sorry sir, our Ts and Cs don't allow our customers to do that." is vastly different to "I'm sorry sir, our Ts and Cs don't allow our customers to do that and by the way, I am calling the police.". An individual company's Ts and Cs do not become part of the UK statute book.

Anyone got any ideas ? I really think creating the debt first is only workable if you steadily build up debt by spending on zero purchase rate cards. Cash advances will be too expensive, and you cannot (as far as I am aware) buy investment products with your credit card (obviously this would be a sweet solution).

So that will leave us all mooching round Tescos building up debt over the months, that's all well and good but if you have a 25k limit, it's gonna be quite a slow burn.

I'm locking this and continuing from here: Credit Card Balance Transfer Discussion Area 3


15 pages is too much, especially if replying while on dialup.