Crazy new policy: You can't go into credit!

Moggles_2

lilac_lady wrote: »

I have a credit card (Clydesdale Bank Gold) that I transfer £5 - £10 into each time I move money about using internet banking. When it gets to £100ish, I use it to buy theatre tickets or treat my grandchildren. I've never had any problem with this.

What happens if the theatre production is cancelled?

Several lenders have advised us that Section 75 of the Consumer Credit Act 1974 wouldn't apply if you spent from a positive balance, because technically it's not credit. You risk losing your money.

Also, if your card were stolen, you wouldn't be covered for fraudulent transactions by your provider's insurance.

Personally, I wouldn't risk putting a credit card in credit. Credit cards - other than Egg Money - are not designed to carry a positive balance. 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). That said, most take a dim view if you breach your Ts & Cs and set out to put the account in credit deliberately.

Best advice is to avoid a positive balance if possible. The larger the sum involved, the greater the risk.

neil40

My nationwide card still lets you have a credit balance.Have done it a few times.By less than a pound though!

CannyJock

ElkyElky wrote: »

If the OP wants an account that can have positive and negative balances, perhaps they should consider a current account with an overdraft feature.

Sounds like a credit card isn't for them if they do not wish to get in to debt.

Nobody mentioned Egg Money yet? Can't see what the fuss is about myself.

EDIT: Moggles has, scratch that.

firsttimestudent

Moggles wrote: »

Several lenders have advised us that Section 75 of the Consumer Credit Act 1974 wouldn't apply if you spent from a positive balance, because technically it's not credit. You risk losing your money.

Moggles, I wonder did you read my earlier post about the hypothetical situation - I wondered if you overpaid your CC by £200 for instance, but you later bought something worth £500 - S75 should be still applicable isn't it - as you techinically borrowed more than £100 from the CC company to pay for the item - similar to the old concept of paying £100 of your holiday with a credit card and the remainder with a debit card to reduce credit card charges?

Moggles_2

neil40 wrote: »

My Nationwide card still lets you have a credit balance. Have done it a few times, by less than a pound though!

Do keep up at the back there, we've been round that loop already.

Moggles_2

firsttimestudent wrote: »

Moggles, I wonder did you read my earlier post about the hypothetical situation - I wondered if you overpaid your CC by £200 for instance, but you later bought something worth £500 - S75 should be still applicable isn't it - as you techinically borrowed more than £100 from the CC company to pay for the item - similar to the old concept of paying £100 of your holiday with a credit card and the remainder with a debit card to reduce credit card charges?

I don't know the answer to this conundrum, firsttimestudent, sorry.
My advice would be not to overpay on a credit card in the first place. What's in it for you?