Have I done something terribly illegal??

Squirrel1980

I have had £2,700 on a Nationwide credit card for a few months now, paying 15.9% APR.

Naturally I decided to shift this debt onto an interest free card.

I applied for the Barclaycard offer of 0% for 20 months online, covering the entire balance and it appeared to go through ok, but it wasn't very clear whether I would have to wait for final written confirmation or whether I would need to sign anything etc etc. I also waited for an email to confirm the transaction, but nothing came through.

So, basically, I assumed it didnt go through properly and went about seeking another interest free card.

I quickly came across virgin (a company I have happily dealt with before) and spoke to them over the phone - I decided a telephone conversation was a safer bet bet applying on line again and not knowing where I stood.

They immediately offered me £1,900 interest free balance transfer and I accepted. I figured at least this would pay off the vast majority of my debt and maybe I could get another card to pay off the rest.

Then it dawned on me.... I HAD applied for another card!!

I haven't yet had confirmation of the barclaycard credit transfer (and I have to say I'm unsure as to whether it actually went through properly), but lets say, for arguments sake, both Virgin and Barclaycard transfer the amounts promised into my Nationwide Credit Card account... That would then leave me in £1800 of CREDIT!

Is this an illegal thing to do?

I asked the chaps at Virgin and they didnt seem particularly bothered, they even suggested that Nationwide would most likely automatically transfer this money into my current account.

Now, for me, this is a very appealing notion, since I am also around K2 overdrawn at the end of most months (I've been in and out of my overdraft now for the best part of 5 years) so technically, that would shift ALL of my debt onto interest free credit cards, which I will have to pay off in the next 1 - 2 years accordingly.

So my question is... Have I done something illegal? Because if I have it was completely unintentional! But if not, can I just relax and feel happy that all my debt is now interest free.

(Sorry for long complicated post, hope it makes sense!)

Squirrel1980

Just to clarify, it was the barclaycard platinum that I applied for online.

Brodiebobs

as far as i know not illegal, we did it by accident when applied for HX card to transfer a balance from egg, got a letter saying they needed more info.... so decided not to bother, applied to barclaycard got accepted balance transfer went through fine.

Got next egg statement and it was positive balance, two days later received HX card in post. Contacted egg they put the balance into my current account and closed the card. I just then paid this off the barclaycard!!

Squirrel1980

Thats good to hear, both that it didnt land you in hot water and also that I'm not the only person to have ended up in this situation by accident.

It has never occurred to me to pay off my overdraft with an interest free credit card before, but i guess this is what I've done in a roundabout way.

thanks for the reply

chattychappy

Illegal in terms of criminal law (fraud etc) - no.

The most you have done is breached the T+Cs of your NW card by potentially causing it to go into credit. That point has been answered already.

Squirrel1980

Thanks ChattyChappy...

Do you think I should contact NW ASAP and warn them that this is going to happen and explain my mistake?

Or shall I wait and just quickly transfer the money into my current account as soon as it arrives? And this (ie transferring money into my current account and effectively getting 'interest free cash' to clear my overdraft) wouldn't be fraud either?

Or... should I transfer it back to the Virgin card as that feels like the most 'honest' option.

chattychappy

I'm almost touched that you are so worried about the dishonesty/fraud aspect!

Right now, I would do nothing except monitor your account. If it goes into credit, then call them and discuss what to do. Whilst it's a nice idea to "warn" them, I doubt if they will be able to do anything except write a note somewhere where it won't be read anyway.

I think you're in the hands of automatic procedures now. They might send the balance back, send you a letter, do nothing..

Bear in mind you have paid a fee on those transfers (assuming they happen) so no need to feel the honest option is to transfer it back.

Squirrel1980

OK, I shall do exactly that, chill-out about it and see what happens, hopefully I will be able to transfer the money into my current account and clear my overdraft too. That would be a bonus!

I think I'm dubious because it has been so long since my bank balance has been in the black that I'm sure it will raise suspicion! Clearly I have a massive guilt compex when it comes to my debt!! But I do realise the bank managers have much bigger fish to fry.

Thankyou for your help!

MoneyWasting_Expert

whoah.... for a minute there I thought you were cutting up cocaine with the ole credit card.

BigCraigJohn

I applied for 3 on the same day a few years back all with 0% balance transfers and got accepted for all 3. Was all done in good intentions as I wanted to transfer my 20k debt over and wanted as much credit as I could, I wasnt trying to commit fraud nor did I read the t&c(does anyone?). Ofcourse after 6 months I was spending on the old card and it went to pot. However ive not been arrested or publicly flogged nor has it even been mentioned.

Squirrel1980

BigCraigJohn wrote: »

I applied for 3 on the same day a few years back all with 0% balance transfers and got accepted for all 3. Was all done in good intentions as I wanted to transfer my 20k debt over and wanted as much credit as I could, I wasnt trying to commit fraud nor did I read the t&c(does anyone?). Ofcourse after 6 months I was spending on the old card and it went to pot. However ive not been arrested or publicly flogged nor has it even been mentioned.

Thats good then!

It almost makes me wonder why I haven't done it before

And no, money wasting expert, no cocaine habit...

yet