0% Balance Transfer Gone Wrong - Can I Complain?

GinaGevans

Hello All

Hoping for some general advice please! I'll try and be as informative as i can be with giving specifics (in case that effects my chances with the banks later).

I had two credit cards, one with circa £7k being charged interest, and one with circa £2500 on 0% interest until later this year (2016). I applied for a card (from neither of my current lenders) advertised as 0% interest on balance transfers. I applied for enough to cover both balances, and as part of the application process it asked for details of balance transfers i was thinking of. I entered the details of both old cards and the amounts on them.

My application was accepted but for a lot less than i asked for. Never mind, i thought, as i can transfer as much as i can from the card with the higher amount on it, which the one i was being charged interest on.

I was surprised to receive a text from my new lender saying my balance transfer had taken place successfully. I assumed that, given my credit limit was less than i requested, it would be down to me to instruct the bank what i wanted to do with my new credit. The new bank had made the full transfer from my 0% card as it was within the new credit limit they accepted me for!

So now i'm having to BT back from the new card, which means my old 0% card will charge me 3% for the action, then 4.9% for six months, then 21.9% thereafter. Plus the new card charged me for the (erroneous) transfer and will charge me again when i eventually make the transfer i originally wanted to (to the higher limit old card).

My feeling is that the new bank have acted without my consent. I didn't enter the proposed transfers in any order, and they were proposals based on them granting me the full amount i requested. The situation changed dramatically once i found out how much they were actually willing to offer me. Have they acted in an immoral way? Have i got a leg to stand on by complaining to them?

Sorry for the essay, i find this quite confusing.

Thanks in advance.

Strummer22

GinaGevans wrote: »

My feeling is that the new bank have acted without my consent. I didn't enter the proposed transfers in any order, and they were proposals based on them granting me the full amount i requested. The situation changed dramatically once i found out how much they were actually willing to offer me. Have they acted in an immoral way? Have i got a leg to stand on by complaining to them?

Sorry for the essay, i find this quite confusing.

Thanks in advance.

Blimey. It is kinda confusing. Hmmm, I think I would first call the new bank and explain what's happened. It's not particularly likely, but you might get to speak to a real human person who is both friendly and intelligent (we can but hope!). If you politely explain your intentions and where it went wrong, they may be able to offer you solutions. The most obvious solution, to me, would be that they double your credit limit so you can transfer the amount of the 7k balance you would have been able to in the first place. Whether there is that much compassion and common sense in the banking world is another question entirely.

Superscrooge

The bank haven't acted immorally or without your consent.

As I understand it. You asked the bank to make two balance transfers onto your new card but your new credit limit was only sufficient to make one of the balance transfers, which was effectively your second choice balance transfer.

I think the two best options are;

1. Ask the bank if they can reverse that transfer or increase your credit limit.
2. Apply for another BT card to transfer the balance from the card that you weren't able to balance transfer.

jonesMUFCforever

IMO this should be a lesson for all - never apply for a balance transfer when applying for a card - get the card in your hand then do the transfers - most give you up to 90 days to do so.

I know hindsight.. bladi blah.

Strummer22

Cheers Jones.

I applied for a BT when I applied for a card, and then had to spend on the card with the pre-existing balance again before it all went through. So if I'd waited I could have shifted more debt to 0% in one go.

Do you think if the OP had just waited until they had the card but they weren't happy with the credit limit, they could have applied for and got a credit limit increase before the BT window closed? Or is it impossible to get a limit increase that soon after opening the account?

planteria

agreed re. the logic of getting the card before requesting the BT, but there is a school of thought that says that requesting the BT also shows the new provider how much credit you actually need:think:

and if i have this right, the new card provider (you can name them, by the way) completed a balance transfer but is now returning it? that wouldn't seem right to me. if there is insufficient credit available, surely the BT would not have been completed in the first place.

paying a fee on top of interest does not seem a fair outcome to me:think:

incase it helps, the only card provider that i have known to agree a Balance Transfer and then fail to actually complete it is Lloyds.

Candyapple

Stu_N_ wrote: »

Cheers Jones.

I applied for a BT when I applied for a card, and then had to spend on the card with the pre-existing balance again before it all went through. So if I'd waited I could have shifted more debt to 0% in one go.

Do you think if the OP had just waited until they had the card but they weren't happy with the credit limit, they could have applied for and got a credit limit increase before the BT window closed? Or is it impossible to get a limit increase that soon after opening the account?

I would say it's near enough impossible to get a credit limit increase straight after applying/receiving a card. Most card companies will either say you need to wait 6 or 12 months before requesting an increase. Maybe in the OP's situation they could temporarily increase the limit, but I doubt it.

Agree with planteria - too many people think if I put down all my debts I want to BT, the new lender can see I need a big limit so this will act in my favour. I can't say I've ever heard of a lender letting the BT's go through and putting the card into over limit territory. Actually, I think I did read a thread on here about something similar and the card issuer was Post Office credit card.

Strummer22

Candyapple wrote: »

Actually, I think I did read a thread on here about something similar and the card issuer was Post Office credit card.

What, the person wanted to shift, say, 3k, applied for the card, got a 2k limit and the PO still did a 3k transfer onto the card, taking them over limit? LOL. :rotfl: That's awful. Hilarious but awful.

Candyapple

Stu_N_ wrote: »

What, the person wanted to shift, say, 3k, applied for the card, got a 2k limit and the PO still did a 3k transfer onto the card, taking them over limit? LOL. :rotfl: That's awful. Hilarious but awful.

I think it was something along the lines of said person applied for a BT during application and was told it was cancelled so called up and did the same BT transfer via phone, only to find out later that the original BT had gone through, and so was now something like £3k in credit on the other credit card. The PO were refusing to accept they had done anything wrong and were charging the person interest on the £3k overlimit balance as well as overlimit fees/markers on credit file and the other credit card company wanted to know why there was a £3k positive balance and were refusing to send it back to the PO / started asking questions about money laundering.

Mahsroh

Give them a call and explain the situation and see if they can rectify. Banks and card providers can be surprisingly accommodating.

Different situation I know, but I had an instance a couple of years back on an interest free credit card (stated in the T&C's that if I missed a payment my interest free offer would immediately cease). I missed a payment date by 1 day (due to stupidity - I simply forgot!). They instantly withdrew my interest free credit and started charging interest from that day. I only realised this a month later on receipt of next statement once interest had already been charged.

I rang the CC company, explained the situation, pleaded utter stupidity on my part and acknowledged that it was entirely my fault. As a good will gesture they reinstated the interest free offer and refunded the interest charged. They had no obligation to do so, but when all is said and done, you're still the customer and they're the one providing the service.

If they aren't accommodating though, i'm not sure you have much grounds for complaint unfortunately, but that's just my opinion.... i'm not an expert.

GinaGevans

Hi all, and thanks for all your replies, I appreciate the time you've put into this.

As it seems like I won't be getting anywhere anyway, and it might make it clearer (and a warning for others perhaps) I'll name names.

My new card issuer is MBNA. I rang them as soon as i received the text telling me my BT had gone through. They advised me (after i waited 30 minutes to get through) that they couldn't recall the amount and i'd need to contact the other card issuer (Halifax) and ask them to 'send the money back' to them. So I called Halifax (no waiting time) and they said this was incorrect advice, they couldn't just send it back and i'd need to ask MBNA to request a BT recall. Back to MBNA and they advised that they could request it but it might take a very long time (no specifics). A week later they advised that, as it wasn't (in their opinion) a bank error they couldn't process a recall.

So, I've had to BT back from MBNA to Halifax, incurring fees and losing the 0% interest i was enjoying with Halifax.

My contention i suppose is that i didn't ask MBNA to make any balance transfers, i provided information requested in an application for a particular amount of credit. If they approve a different amount to that requested it seems ill practice to assume my use of that credit would be the same. This would be lessened I suppose if they accepted this and remedied everything at no cost to me.

Not sure what i'm hoping for, perhaps i'm just venting now.

Thanks again to all