Credit Card Balance Transfer Discussion Area 2

DAC_3

I'm interested in the conversation between biffwilcox and johnllew as to whether it is fraud to transfer to a card with no debt.

I have done this myself, transfering onto my Egg card and then moving it onto my bank account. Haven't had any come backs (yet)!

Thinking about it I obviously should have transfered to the bank account first to create the debt but too late now.

Surely if it is fraud we all have a problem as transfering from an Egg card to a bank account with no overdraft can't be any different.

With regard to the moral issue, lets face it, however we do it, we are all doing the same thing.

LionKing

Hi,

My Halifax 9 month interest free intro offer is coming to an end and i am looking for a new credit card to balance transfer the remaining amount.

I have read through the various articles and trying to decide between a Virgin card or a Lloyds TSB card (both 9 month intrest free). Just wanted to ensure there are no hidden costs and if anyone can advise any alternative better cards.

Thanks in advance.

mary

The use of the Egg card as a mule, to get money into a current account even outside of the offer periods makes it a 'must have' for me.

As my Egg card is shortly coming to an end, and it has been recommended to keep it for the anniversary month, can you explain how you can still use the account outside the offer period please?

Reaper

As my Egg card is shortly coming to an end, and it has been recommended to keep it for the anniversary month, can you explain how you can still use the account outside the offer period please?

Egg is one of the few cards which allows you to do balance transfers to your bank account without any fees. Most cards only allow you to balance transfer to another credit card. So what you do is to take out an ordinary 0% credit card and transfer up to its credit limit to the Egg card, leaving the Egg card with a positive balance. You can then balance transfer this to your bank account and from there on to a savings account, offset mortgage or wherever you want.

biffwilcox

I'm interested in the conversation between biffwilcox and johnllew as to whether it is fraud to transfer to a card with no debt.

Hi Dac,

Yeah, I have done this a number of times, and until I came to this board I was just about to do it again. I am really interested to know whether this behaviour is actually fraudulent, or whether that is just johnlew's opinion. (Of course, if johnlew is a qualified lawyer, I don't think it's fair to dismiss his coment as just his opinion).

Does anybody know anything about this ? "Creating the debt first" sounds really dodgy to me, even a few weeks interest at cash advance rates could put a significant dent 9 months returns at 5.5pc.

Besides which, this sounds like a question that really should be answered, looking at the forum, there's you, me, reaper smitty and smartsaver in the last 10 posters alone. If 50pc of us are doing it we really aught to know (1) is it legal; (2) if not, what are your chances of getting nailed; and (3) if you do get nailed, what would the consequence be.

As an aside, I am also interested to know, is it better to ask for the BT on the card application form ? Capital One are suggesting that my credit limit will be much larger if I do so ? But if I do, how much should I go for, given that I don't know what credit limit I will be offered.

I would also like to say that if I upset anyone earlier, it was not my intention. I am posting here because I don't know the answers rather than because I am a smart !!!!!!.

Finally, Dac you're right about the moral argument. We're all doing it one way or the other so I guess we can put that one to bed.

smartsaver

I have never transferred money to EGG when the balance is £0.00 but was just about to after reading threads were this has been done without any charges.

I personally see no moral difference in this and transferring money into a current account to pay of a non existant overdaft. Technically surely you are 'preloading' the card which is allowed. Also stashing money away in high interest accounts must be of the same vein. I think this is just a loop hole allowed by EGG that if we are not careful they will withdraw.  :'(

Would be interested as to what the experts think. I dont want to break the law  :o

johnllew

Egg allow transfers to your current account, whether overdrawn or not. It's in their T&Cs:

2.4 You can ask us at any time:

to pay off an amount you, or your Additional Cardholder, owes to another UK lender and transfer it to the Account, as long as the amount transferred would not make you go over the Individual Limit and is £100 or more and is not used to discharge your or your Additional Cardholder's indebtedness to any part of the Egg plc group of companies;

to transfer (by direct bank transfer) an amount from your Account directly to a specified current account held by you or an Additional Cardholder as long as the amount transferred would not make you go over the Individual Limit and is £100 or more.

So it's somewhat different than telling another CC company that you want to transfer a fictitious balance, is it not?

smartsaver

I take your point.

I think the differnce is the issue in question that has not yet been answered. I just ask to transfer a balance from card a to card b. I don't actually state whether it is to pay off a card or pre load it for whatever purpose  

This is the issue where we need to clarify the legalities  ???.  

Smitty

:-/ :-/ :-/ I wish this conversation never started

smartsaver

Cheer up Smitty - I don't think EGG would allow a facility like pre loading if it is illegal.

Once a card is pre loaded surely you can do what you like with the money - people do this to take a card on holiday instead of cash travellers cheques.