Going Over the CC Limit Question

gazzarw

If you have a credit card with a £10,000 limit and it was over spent by £19,000, would this be classed as irresponsible lending? and then the credit limit is upped by the lender to £13,000 without notice and no new agreement is signed, then would this make the original agreement unenforeable???

izools

1) No, because the lending wasn't agreed with the lender. The lending was unauthorized. They didn't give consent to borrow the money.

Essentially the money was "taken" from the lender in breach of the credit agreement - it's only if the credit agreement lays out lending that is ridiculous that it can be considered irresponsible.

2) No, because the original agreement states that the limit is variable (I would presume - I've not seen one that doesn't!)

Sorry to burst your bubble!

gazzarw

so withdrawing an additional £19,000 without any enquiries from the lender is ok?. Also, the agreement does not say anything about it being variable. Only that i had to be earning 20k to get the card, which was 7 years ago

izools

I would read the agreement very very carefully. I find it very odd that they wouldn't include that clause anywhere in the agreement.

Also, they didn't agree to lend you £19,000 over your limit. A lender can only be held accountable for irresponsibly lending what they actually agreed to lend.

If you asked to borrow a fiver off your mate and he said well you can borrow a tenner actually, but you took twenty quid out of his wallet whilst he went to the bar, but could only give him a tenner back until next month because you were on JSA, who'd be being irresponsible? He probably wouldn't question it too much, because you're good mates.

Obviously if you then turned around and said well you let me take it without questioning it at the time, so I don't owe you £20 I only owe you £10 he'd be pretty peeved with you and probably you'd be down a mate.

Sorry for the patronising analogy, I'm tired and it's the best I can come up with.

I think you'll have a tough time getting this declared unenforceable, especially with the recent court ruling. Sorry to be the bearer of bad news

cos_2

Hi, gazz: just to be clear are you saying your cc let you borrow £29000 when your limit was £10000? Can you name which cc it is?

gazzarw

RBS and this was over 2 months