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

grumbler

cas1703 wrote: »

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

If they never allow going over the limit why is there a charge for this?:think:

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

Yes, it is the same. If you read the news, why do you expect to be stopped from going over the limit?

CLAPTON

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

All CCs and ODs work in this way so you are taking quite a big step.

cas1703

All I wanted to know is whether it was "fair" or not. I didn't want to be berrated for what had happened. It seems sad that you all feel it's better to put me down for my mistake rather than offer constructive advice like one of the members.

I thought all payments were authorised at the point of sale and didn't know they were not checked for available funds but now I know this. Although I do not think this is hard/fast as sometimes my debit card won't go through if it's going to take me even 50p over my buffer limit.

I thought it was a bank morality to be fair and look after their customers and I thought this meant helping to ensure they did not exceed credit limit/overdraft.

bengal-stripe

cas1703 wrote: »

Although I do not think this is hard/fast as sometimes my debit card won't go through if it's going to take me even 50p over my buffer limit.

There are two types of debit cards: off-line and on-line. Off-line cards (with raised numbers) do not need the funds checked for every transaction (as long as the value below the floor limit). On-line cards (without raised numbers) need the balance checked with every transaction. Obviously, off-line debit cards are issued to the financially sound customers, while those customers the bank as doubts about, will only get an on-line card.

This distinction does not exist for Credit Card. There is only one type, the equivalent to off-line and with raised numbers. As all applications for CC are credit-checked, it is presumed that only those customers the bank can trust (at least up to the card's limit) will be in possession of a CC.

Gizmo247

Yes it is fair. The limit is not for your benefit but for theirs. It is the point at which they can charge you an "over the limit" charge. It is described in "their" terms and conditions, not yours. It is your choice on how you wish to operate your account but theirs to charge if you break their T&Cs.

lynz68

Yes the charge is fair. It is up to you to know what money you have available. To be honest if this has never happened before and you had apologised and asked nicely they probably would have waived the fee.

nidO

Out of curiosity, do you generally keep your card with them in good standing and when you contacted them did you start puffing your chest up and getting indignant over the charge, or query it with them politely?

I mistakenly went over the limit (which i'd set fairly low on that particular card intentionally) on a Natwest card by £50-odd one month a year or so ago as I got some dates crossed and ended up spending (comparatively) a lot on it a few days before the card's direct debit for the full balance was due.

On phoning Natwest (ie RBS) my query wasn't "how dare you charged me a fee I agreed to you charging me" but "whoops sorry, the direct debit's coming out in a few days, would it be easier for me to clear the balance by debit card immediately to get it back in limit?" - Natwest removed the overlimit fee (without me asking them to) and told me the balance being cleared in a few days by the DD would be fine.

cas1703

Thank you for clarifying the difference in credit cards/debit cards - I did not know that.

The card went over the limit by £9 but I realised a few days after the transaction and immediately paid the full amount (original transaction back). At no time was I over the limit at the date the statement was issued - it happened between statements.

It came to my notice because they sent me a default letter (not received the statement til 2 weeks after this happened. On receiving letter, I wrote a letter to Customer Services explaining what happened and that I immediately bought it back down when it came to my attention.

But they were adamit that's my fault. I've had lots of problems with RBS in the past as they kept turning off my paper statements and they seem very rigid in being fair to their customers.

Anyway, there loss - I've paid it off completely now and written to them to ask them to close the account.

Hedgehog99

Some cards offer you the option of text alerts when you are a specified amount from your limit.

The charge is fair (and cheaper than it used to be as others pointed out).

If you were stuck needing petrol at 3am, would you be please if your card got declined then?

bengal-stripe

cas1703 wrote: »

Anyway, there loss - I've paid it off completely now and written to them to ask them to close the account.

Hopefully you're not cutting off your nose to spite your face.

Be aware, that same "problem" will happen with every other Credit Card.