Can you balance transfer to a card so you are in Credit?

BoroPhil

I have just transferred £2500 from one card to a new 0% with a £8700 limit. Could I, in theory transfer more from the original card, putting it in credit?

scottishblondie

It is generally against the T&Cs of credit cards to intentionally put them into credit. I can't see the CC provider allowing a balance transfer that would cause this.

BoroPhil

Thanks, I did think it would be unlikely

YorkshireBoy

BoroPhil wrote: »

Thanks, I did think it would be unlikely

Before giving up on the idea why not say which cards you're talking about?

Also, which other cards you have?

There may be a workaround.

sujman

I asked a similar question when I spoke with Virgin CC. He said yes, no problem at all, as a balance transfer is actually a payment from one card to another. So effectively you overpay.

He did warn though that whilst possible, you get none of the protections a CC offers when you use money that was overpaid and not the actual credit facility.

thenudeone

sujman wrote: »

He did warn though that whilst possible, you get none of the protections a CC offers when you use money that was overpaid and not the actual credit facility.

Anyone got any legislation to support or refute this?

It sounds unlikely. For one thing, if you are £100 in credit then make two £100 purchases on the same day, how can they possibly tell which purchase was made from the overpayment on the account and which creates a "normal" credit card balance?

scottishblondie

thenudeone wrote: »

Anyone got any legislation to support or refute this?

It sounds unlikely. For one thing, if you are £100 in credit then make two £100 purchases on the same day, how can they possibly tell which purchase was made from the overpayment on the account and which creates a "normal" credit card balance?

The timestamp on the transaction comes to mind.

thenudeone

scottishblondie wrote: »

The timestamp on the transaction comes to mind.

Not every transaction has a timestamp. Occasionally a manual carbon voucher is used.

I'd still like to know what the legal position is. The egg money (originally "egg blue") used to act as a hybrid credit card and savings account, and used to offer a good interest rate on positive balances. I wasn't aware that if I had used the card (issued under the terms of the CCA 1974) then parts of the CCA wouldn't apply when the account was in credit.

YorkshireBoy

thenudeone wrote: »

I'd still like to know what the legal position is.

It's to do with 'credit tokens' and you'll find it in the Consumer Credit Act 2006.

If you don't want to spend hours reading that, then just google it or search the FOS site for 'credit token'.

thenudeone

Well I have certainly learnt something about "credit tokens" (and particularly their importance in relation the £50 limit for fraudulent use) but nothing to suggest that a card issued under the CCA 1974 does not have cover under s75 if it is in a credit balance.

Section 75 itself states "If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier ....."
which strongly suggests that if the card is issued under CCA 1974, s75 applies. What suggests otherwise?

danouk

But if the credit card account is in credit then you're not a debtor. Therefore no S75 for you.