How to get a large balance on credit card and then remove it?

Tropez

If I understand this right, you want to "buy" products/services worth £6,000 and make a claim on PPI to have 15% of the balance erased, then return said products/services for a refund in order to collect the 15% as profit?

Yeah, that sounds like fraud to me.

MrChips

JimmyTheWig wrote: »

I can't decide if I agree with this statement or not...

I would suggest it is a loophole rather than fraud.

It's analogous to the Nationwide switching offer where people set up a random standing order and ask Nationwide to switch it to their current account to qualify for the £50 bonus (when they were making this offer). Clearly Nationwide are expecting people to switch and use the account as their main account, but so long as you comply with the T&Cs of the £50 bonus offer, they are obliged to pay the bonus.

MrChips

Thanks for all the opinions so far - I'll try and play devil's advocate a little longer if I may.

When I first got the credit card, it was a month before my wedding and during the activation phone call, the lady selling the PPI actually encouraged me to take it out because I would be able to claim on the forthcoming wedding. This was after I had transferred a £6k balance on the card. She said it was a no brainer as I would be able to claim £900 back.

If their own employee encourges me to do this, surely they accept it is a valid selection risk of the policy rather than fraud?

As far as I understand, fraud is "deception for financial gain". Where is the deception? The claim event is genuine, the balance on my card is genuine, albeit temporary.

zppp

MrChips wrote: »

Thanks for all the opinions so far - I'll try and play devil's advocate a little longer if I may.

When I first got the credit card, it was a month before my wedding and during the activation phone call, the lady selling the PPI actually encouraged me to take it out because I would be able to claim on the forthcoming wedding. This was after I had transferred a £6k balance on the card. She said it was a no brainer as I would be able to claim £900 back.

If their own employee encourges me to do this, surely they accept it is a valid selection risk of the policy rather than fraud?

But she didn't say, yeah transfer the money, make the claim on the insurance to get the 15%, and transfer the balance back? Did she?

hur575

I also see it as loophole otherwise stoozing is fraud too, because if you tell the credit company your intention, they will never part with their money.

CannyJock

I applaud anyone who can use a loophole to their advantage. I make/save myself a fair bit of money each year by applying the letter of the law to all sorts of situations.

The concern I would have with what you're suggesting is that it sounds a bit obvious to me - I'd be very surprised if the credit card company haven't come across this type of thing before.

Wasn't the tax bill payment and refund something we spoke about recently on the stoozing site?

Certainly be interesting to hear how you get on.

MrChips

zppp wrote: »

But she didn't say, yeah transfer the money, make the claim on the insurance to get the 15%, and transfer the balance back? Did she?

No, but that is separate to the claim. Once they have paid, it is up to me how long I take to pay off an outstanding balance. Most people pay off their credit cards in full at the end of each month.

zppp

hur575 wrote: »

I also see it as loophole otherwise stoozing is fraud too, because if you tell the credit company your intention, they will never part with their money.

Stoozing is not fraud and is a loophole. It has nothing to do with making an insurance claim, sorry. :rotfl:

ILW

MrChips wrote: »

I appreciate the heads up. The way I look at it:

- burning your house down deliberately and claiming insurance is fraud
- if your house catches fire accidently and you happened on that particular day to have £10k of goods inside that on any other day you wouldn't have, that is bad luck for the insurance company!

If I faked a birth cirtificate and made a claim, that is fraud. If the claim event happens naturally and I happen to have a large balance on my card on that date, that is my good luck and their bad luck. I am all in favour of increasing my chances, although I will still need to be quite lucky because the date of birth will be hard to predict with any certainty.

In this case I would have thought it was like, if you knew your house was going to burn down and you piled £10ks worth of stuff into it the night before. Probably be OK though.

zppp

MrChips wrote: »

No, but that is separate to the claim. Once they have paid, it is up to me how long I take to pay off an outstanding balance. Most people pay off their credit cards in full at the end of each month.

I'm not looking to argue with you MrChips, you have posted on a forum, asked for opinions and you have them. Take it or leave it. Just don't come back onto this board complaining if your claim is rejected or you are convicted of fraud.

By the way, it's people making large over-inflated insurance claims that push the premiums up for us.