Balance Transfer bigger than Credit Limit

matt.price1971

I recently applied online for a Creation Credit Card to Balance Transfer for a 0% deal. During the application I entered the amount I wanted to transfer, and was accepted. No paper work was sent to me to fill in to confirm, and it know appears that they have given me a credit limit LESS than the Balance Transfer.

As i have not had anything to sign I would never have agreed this. Is this legal?

Any ideas would be gratefully appreciated.

dawn-c

I applied for the very same card the other week, I wanted to transfer about 4k accross but was only given a limit of £1600, they sent me a letter to let me know this and asked me to call to discuss which cards & amounts I would like transferred, I've just done this today and it should be complete in the next 3-5 days and the card with me in about 10 which I am not too bothered about as I don't need it.

I've not really had to sign anything on paper either but I think I remember there being a credit agreement thing online that you had to accept when applying.

Brian1966

Totally legal in that no guarantees are offered in relation to credit limits.
Given that you have already been credit searched and accepted you may as well keep it and at least utilise the 0% for some of your balance transfer. Maybe not a huge saving but every little helps.

fozmcfc

OP it is still worth accepting the card, as at least you can transfer some of the balance on your card to 0% for 15 months. Either apply for a further card, or pay the minimum on the 0% for the next 15 months, while chucking the rest of your payment towards the other CC debt.

Dawn, same for you, some is better than none.

Some companies are known for giving larger limits (such as MBNA backed cards).

As I say still accept the card, as you are still at least clearing some of the debt to 0% for 15 months.

dawn-c

fozmcfc wrote: »

Dawn, same for you, some is better than none.

Thats exactly what I've done, not the amount I wanted but as you said it's better than nothing

izools

And on the plus side they are generous with limit uplifts One after three months and every four after that.

matt.price1971

My issue is I now have £1600 outstanding over my credit limit which they want full payment by Aug 23 or i no doubt will get stung with massive interest.

How come they can't tell me my credit limit was X amount and the balance transfer was way over.

I would have changed the BT accordingly.

It seems very unproffesional considering the other 2 cards that I have transfered to (both sent me confirmation to sign, or told me my credit limit before entering BT).

Brian1966

matt.price1971 wrote: »

My issue is I now have £1600 outstanding over my credit limit which they want full payment by Aug 23 or i no doubt will get stung with massive interest.

How come they can't tell me my credit limit was X amount and the balance transfer was way over.

I would have changed the BT accordingly.

It seems very unproffesional considering the other 2 cards that I have transfered to (both sent me confirmation to sign, or told me my credit limit before entering BT).

So your are saying that Creation paid off your FULL balance as requested, putting you OVER your limit on the NEW card then demanding the overpayment immediately by 23rd Aug.
Would not happen....errors do occur but that would be huge f*ck up.
Fishy to say the least :eek:

izools

Brian1966 wrote: »

So your are saying that Creation paid off your FULL balance as requested, putting you OVER your limit on the NEW card then demanding the overpayment immediately by 23rd Aug.
Would not happen....errors do occur but that would be huge f*ck up.
Fishy to say the least :eek:

Definitely. They can't do this. If they have (which seems highly unlikely) a complaint to the FSA and Creaiton (asking to speak to the underwriters) is very much in order!

matt.price1971

Yep. My thoughts exactly. I made the enquiry on the net 2 days before I went on hols. When I was asked how much i wanted to transfer I put 4.5k. I was apparantly accepted and left it at that.

I had 1 email saying 'Welcome to Creation' which was NOT replied to. Then when I got back from my hols my opening statement had arrived:
Credit Limit = £3000
Balance = £4646.10
Min Payment due by 23 Aug = £1785.48

I would NEVER have agreed to this.

I am currently waiting for an internal investigation following my complaint last week (could take several wks apparantly).

I called again today, after receiving another statement. They are not being that helpful (usual crap about being a diff department - they will call me back this afternoon).

izools

Jesus that's diabolical.

If they end up putting any adverse information on your credit file as a result of this raise a complaint with the FSA and ICO demanding removal of it and compensation for the damage / hassle.

Good luck!