Over credit limit - any advice?

HannahC

I've just been going through my Halifax credit card statements and realised that I have been very stupid. Essentially I have been charged interest since August on a very large balance and not realised that this was happening.

To explain things, I went over my credit limit in August. It was my mistake completely and as soon as I got the letter informing me I had done so, I duly rang them up and paid my fine for going over the limit. They agreed to up the limit slightly and the problem was sorted. Lesson learned.

What they failed to tell me was that by going over the limit, I had effectively breached the T's & C's of my credit card agreement, so interest was now applicable on the entire balance. This was a 0% interest card (due to expire in Feb 2009) so I wasn't expecting/looking at the interest charges.

I have just realised this has been happening and in total I have paid over £200 in interest. Please note, I appreciate that I have made two big mistakes here; going over my limit in the first place and not realising the interest issue sooner. I am not claiming to be blameless and feel very stupid already. However, I do believe the credit card company had a duty to inform me at the time I called in to pay my fine, that I had breached the T's & C's e.g. my promotional offer would now end and interest would be applicable. Is it worth me raising this with them?

Thanks
Hannah

Merlinexcalibur

I don't know about interest but may be able to claim any 'fines' and fees apart from those back. I would also suggest any further contact with them is done in writing by letter. You really will get nowhere with the average call centre staff because they are working to a script amongst other things. Like machines, they only know how to repeat what is in front of them. They will not have a clue when it comes to the minutae of contracts. They aren't paid nor trained to. And the calls rack up a bill. You will just go round in circles.

If this was your first time going over your limit most companies often will refund as a gesture of good will. Some, not all, though. Maybe if you write to them, explaining how confusing it has been and put it to them in a letter. You will get further than on the phone to them. If you can, you could try and find out their customer care division's address. Then you are speaking with the organ grinder not the monkeys.

cifpower

When you accepted the card you accepted their T&C of which the following is stated in the summary box:

* We may apply the standard interest rate to balance transfers or purchases before the end of the special promotion period if in any month you do not make at least your minimum payment by the payment date or if you exceed your credit limit at any time.

bengal-stripe

All credit cards will regard going over the limit as more serious than being a day or two late with the payment. After all, once you go over the limit you will have spent all the money the CC has supplied.

In the 0 % promotional deal there will have been a proviso that when you breach the agreement (by paying late or going over the limit), they CC might, or even definitely will, withdraw the promotional rate. That was mentioned in the contract.

You can talk to them, but I wouldn’t have much hope, after all your deal expires next month already. Hope you have the money to pay it off, the interest rate might well increase., particular as you did not pay the overspent off immediately but asked for an increase in your limit.

You, as a customer, have become more of a risk.

exel1966

HannahC wrote: »

However, I do believe the credit card company had a duty to inform me at the time I called in to pay my fine, that I had breached the T's & C's e.g. my promotional offer would now end and interest would be applicable. Is it worth me raising this with them?

Thanks
Hannah

The card company would have informed you in writing on your September statement by showing the interest payable. The CSA would not necessarily be in a postion to inform you that your 0% period would be withdrawn as at that time. The system would automatically pick up your error and adjust your rate, there wouldn't be any manual intervention involved.
You have to ask yourself why has it taken five months for you to look at your statements ? If you had noticed earlier the chances are that your 0% could have been reinstated (as many people have done this), but now I somehow doubt it.
Ask (apologetically), see what response you get, you've nothing to lose, but £200 to gain !