RBS authorising overlimit transactions

Mrscampbell81

Hi all

Newby here desperately seeking help!

In a bit of a mess with my credit card.

I stupidly didnt check my balance before paying the balance of my holiday, I thought it wouldn't be authorised if there wasn't enough credit left on my card. The transaction was processed as was 2 subsequent transactions resuming in my being nearly £700 overlimit. I received the usual overlimit letter and charge, I paid the £700 and a 2 months later cleared the whole balance. Today I have opened my backlog of mail (I have been away from home with work/holiday) and have more overlimit charges as before I cleared the balance the internet again took me over limit.

I understand I should have checked my balance before paying for my holiday but feel RBS has let me down in terms of responsible lending. I have been a good customer for over 10 years and now I am in this mess as I am about to remortgage. Is there anything I can do? Is the credit card act 2009 USA only or does it apply here?

Any advice appreciated.

Tixy

Its not uncommon for card providers to allow you to make a transaction that would take you over your limit.

You could ask them to consider removing some of the charges as a goodwill gesture.

The credit card act 2009 is a USA law.

YorkshireBoy

Card providers often assign a 'shadow limit', set above your actual credit limit.

That's why RBS say, in your T&Cs...

"We may refuse a transaction if you would go over your credit or advance limit" (condition 2[e])

Note the use of the word "may", ie they don't say they "will".

I don't see it as irresponsible lending myself. They obviously thought you were good for the money otherwise they would have declined it.

They thought you'd benefit from paying your holiday off and they'd benefit from (an additional) £12 a month whilst you were overlimit. A kind of win/win situation.

But what have RBS said when you raised the issue with them?

grumbler

Tixy wrote: »

Its not uncommon for card providers to allow you to make a transaction that would take you over your limit.

I'd say it's uncommon to block transactions that would take over limit. Very few do this, but no one promises. So, you can never be sure that such transaction will be blocked.

Mrscampbell81 wrote: »

I thought it wouldn't be authorised if there wasn't enough credit left on my card.

Making groundless assumptions is a dangerous business.

..feel RBS has let me down in terms of responsible lending.

I don't think so.

Any advice appreciated.

Make a payment to the CC to get under the limit ASAP. Add extra for the fees. It's likely not to be reported to CRAs if the balance is below the limit on the statement day.

chattychappy

The harsh answer is that it's "irresponsible borrowing" not "irresponsible lending".

You said yourself that you have been a good customer for many years. On this basis the bank were reasonable to suppose that you would have no difficulty in paying the extra borrowing back. Indeed, that's exactly what you did.

Mrscampbell81

Thank you for your replies everyone and can assure any doubters I am not a spammer!

I am rather annoyed with myself for getting in this mess, a quick check of my balance would have prevented it rather than assuming RBS would decline it. I agree that this is a situation to make them money so why would they decline it.

I have written to them, explaining the situation and my thoughts, I've yet to receive a reply.

Thanks all

chattychappy

Sounds like it's too late now, but if you got multiple charges for a minor/transient overlimit period, then one line of complaint you can run is that the charges are disproportionate given the nature of the breach and are excessive unless they can justify them with reference to the costs they incurred. Not saying it work, or you'd win in court, but just because penalties are provided for in the T+Cs doesn't make them lawful.

pc1271

I once went over limit many years ago for a similar reason - I wasn't sure of the balance and thought the card would be declined if there wasn't enough available credit. The bank phoned me, and I immediately paid off the over-limit part and they didn't charge me anything.

As I said, this was many years ago, but it may be worth phoning them to discuss, and they may be willing to waive the charges.

jonesMUFCforever

OP If the transaction for your holiday had been declined what would you have done?