Credit Card - Over Payment

Hopewea

I paid off my balance in full on the 4th December via my debit card, today the Credit Card company have taken £5 out of my Bank Account via Direct Debit.

I called to advise and they stated that my Credit Limit has now gone up by £5 how does that work.

Are they in their rights to just do that even though my balance is £0.

cifpower

What card is it? Some companies take out the direct debit regardless of the extra amount paid

Hopewea

BMI Baby - (Citi Cards)

I have made payments before by my debit card and they have never taken via direct debit before.

Maybe it was to close to the Direct Debit date but surly they cant just say my credits increased. Its my money in the first place.

Moggles_2

Hopewea wrote: »

BMI Baby (Citi Cards). I have made payments before by my debit card and they have never taken via direct debit. Maybe it was too close to the Direct Debit date ...

Yes, the bank requires more than one working day's notice.

... but surly they can't just say my credit has increased. It's my money in the first place.

You were told your credit limit had increased, not your borrowings.

Credit cards - other than Egg Money - are not designed to carry a positive balance. That said, most lenders are relaxed about modest sums that arise temporarily (due to a refund, for instance, or making a one-off manual payment too close to your direct debit payment date).

If you were to use the card for a fiver's worth of shopping, your balance would be returned to zero, once again.