Credit card allowed over limit then charged - is this unfair charge?

cas1703

Hi,

I am in dispute with RBS over a £12 over limit charge.I made a purchase not knowing it would take me £20 over my limit. The payment was authorised by the credit card company.

I then received "overlimit fee". I queried this with the company and asked why it was not "declined" becuase if it had been I would have paid an other way and the charge would not have been occurred. They are standing firm and said it's down to me to ensure that I operate within the limit and they allow leeway as and when they like.

They have told me there is no way to put a clear barrier to stop this happening again.

My question: Is this ran unfair charge? By allowing a customer to go over their limit they know they are going to get the £ plus the extra interest so is this a way of the bank making more money?

Is it worth making this an official complaint and going to Ombudsman or am I stuck? I know I when over the limit but I thik they should have a duty to ensure that I am within the credit limit by not allowing transactions that take you over.

Many thanks in advance

Candyapple

The onus is on you to know how much money you have spent/is left available.

Surely you knew you were close to your limit?

Next time if you are unsure, log onto your card's internet banking page and double check.

cas1703

My question was about if they allow you to go over the limit is it fair to charge you.

If you have a credit limit should it be just that a "limit"?

If it had been declined then I would have paid in a different way (but I didn't realise there was not enough available due to a annual recurrig charge which I forgot was on there)

There's lots in the news about people going over top of overdrafts and it turning into large charges/interest. Is this not really the same thing

Foxy-Stoat_3

The charge is fair, a few years ago they would of charged you double or treble that figure but the OFT stepped in.

Move on and don't go over your limit in the future.

[Deleted User]

It's not worth taking it further as you accepted this charge when you signed the credit agreement. If they didn't let customers go over the limit then why would there be a charge for this stated in the agreement? Having said that, NatWest decline transactions which go over the limit so I would have thought RBS would do the same.

cas1703

It just annoys me that limits are there for a reason and then they don't enforce them.

It's pee'd me right off and I'm just going to close the account and pay it off. Thank you for your response 611

Sinhanada

Unfortunately for you the charge is fair and there is no way to claim this back. The system has allowed you to go over your agreed limit (In much the same way a debit card can or direct debit etc.)

Foxy-Stoat_3

If a £12 charge has pee'd you off that much then it will be a good lesson well learned !

bengal-stripe

Many transactions do not require authorisation if they are below the merchant's "floor limit". Only transactions that exceed that limit will be checked for available funds. The same thing applies to contactless payments, those will not be checked for available funds.

The bank will not know how much you've spent until the actual charge gets deducted a few days later.

CLAPTON

cas1703 wrote: »

My question was about if they allow you to go over the limit is it fair to charge you.

If you have a credit limit should it be just that a "limit"?

If it had been declined then I would have paid in a different way (but I didn't realise there was not enough available due to a annual recurrig charge which I forgot was on there)

There's lots in the news about people going over top of overdrafts and it turning into large charges/interest. Is this not really the same thing

maybe if you were paying an important largish item (say some rail tickets for the family ) and were refused for just few pounds and had no other way of paying, you would be here complaining why they wouldn't allow a little discretion.


better to use the situation to learn some lessons in how to manage CC and OD : stay at least £100 away from your limit.

meer53

cas1703 wrote: »

It just annoys me that limits are there for a reason and then they don't enforce them.

It's pee'd me right off and I'm just going to close the account and pay it off. Thank you for your response 611

It's a limit, not a target, to avoid fees, stay well away from your limit.