£12 over limit charge - unfair?

HeatonGuy

Malcnascar wrote: »

Card issuers, in my experience, stick to their published T&C's.

Well, they stick to what they think their T&C are - which doesn't always match either what they do really say, or the Consumer's rights.

HeatonGuy

I'm resolving this by a simple method - I'm asking my own bank for a (cheaper) credit card with a limit that will always cover my monthly business expenses.

As the current card issuer charges 19.9% and my own bank will only charge 13%, I win both ways.

IAmWales

HeatonGuy wrote: »

I am not performing a transaction that takes me over the limit. They are.

I cannot know, until they apply the interest, how much they are going to apply, and therefore can do nothing before they apply it (other than making an early payment) to prevent the balance going over if it is close to the credit limit.

As such, it is their action, their transaction, that takes me over their limit.

It feels like they are making a profit from their own application of interest

The transaction occurs because of your actions. You need to take some responsibility and better manage your account so you're not so close to your limit.

HeatonGuy wrote: »

Well, they stick to what they think their T&C are - which doesn't always match either what they do really say, or the Consumer's rights.

In what way do you believe they are in breach of your consumer rights? Please reference the relevant law.

YorkshireBoy

HeatonGuy wrote: »

I cannot know, until they apply the interest, how much they are going to apply

Yes you can. You just don't know how to do it. Would you like some help?...or does having another card solve your problem now...or for now?

PeacefulWaters

HeatonGuy wrote: »

I am not performing a transaction that takes me over the limit. They are.

Yes, but you're behaving recklessly by accruing interest when operating within a whisker of your limit.

I cannot know, until they apply the interest, how much they are going to apply, and therefore can do nothing before they apply it (other than making an early payment) to prevent the balance going over if it is close to the credit limit.

You could perform some mathematical approximation based on the monthly rate.

As such, it is their action, their transaction, that takes me over their limit.

No, it's your foolishness carrying out a transaction that generates interest when you are so close to your limit.

It feels like they are making a profit from their own application of interest

It really is time you started being a little bit more savvy about how you operate your debts. Stop blaming the card issuer for your poor decisions.

HeatonGuy

IAmWales wrote: »

In what way do you believe they are in breach of your consumer rights? Please reference the relevant law.

I didn't say that they were - I said that it is not unknown for companies to operate outside the law but within their terms. Some famous examples included Comet's refund policies.

redpete

tight4rse wrote: »

All Financial services companies must have an official complaints procedure in place. The fact that you have been told otherwise is itself grounds for complaint.

Heatonguy wasn't told that, he was told there is no complaints department.

[Deleted User]

HeatonGuy wrote: »

and for details of the complaints department, I'm told they don't have one...

They don't have a complaints department :huh:

Sncjw

It’s your fault for being near the limit on purchases then your withdrawing cash which attracts interest.


Your the one spending the money not them. Don’t go near the limit

PixelPound

HeatonGuy wrote: »

I'm resolving this by a simple method - I'm asking my own bank for a (cheaper) credit card with a limit that will always cover my monthly business expenses.

As the current card issuer charges 19.9% and my own bank will only charge 13%, I win both ways.

Only if you manage to leave enough of a room to not take you over the limit with interest and not simply use that extra limit and still incur charges. You have quoted APR, is that purchase APR or cash advance APR? Since you say you clear the balance each month, then purchase APR is irrelevant as you don't incur it, but as you use the cash advance feature in emergency then interest is incurred straight away and that can have a different rate - check the back of your statements it will say the relevant monthly rates.

You should really not take cash advances from credit cards, this is a bit like payday loans, and shows inability to manage cash flow.