Charged for going over limit due to bank charge?

wardley

Hi,

This is probably just wishful thinking on my part, but I've just had a charge applied to my credit card because the interest on it took me over my limit (by £1.50 - so getting charged £20 for that seems extreme).

I seem to recall a while ago reading about banks being told they can't apply charges for going over your agreed limit when it's their own charge that caused you to do that in the first place? (does that all make sense?).

Am I just dreaming or can I call them up and ask them to remove that charge because of some legal clause?

[Deleted User]

You're dreaming.

jonesMUFCforever

Well you can ask but if you are living so close to the limit they might say to you that you may be in financial difficulties and block the card to new borrowing.
Your call.

Terry_Towelling

I'm with you to some extent on this - yes, it is a bit extreme and, yes, you are probably dreaming.

However, many credit card statements will advise you of the estimated interest that will be charged in the following month and I suspect they make that estimate based on only receiving a minimum payment. So, it may be that you should have factored that estimated interest amount into your card usage and payment plan for the month in question.

That said, I'd still be inclined to politely request a refund of the charge - and keep your fingers crossed - but please do keep an eye on your statement information.

Chino

wardley wrote: »

Am I just dreaming or can I call them up and ask them to remove that charge because of some legal clause?

I don't know what credit card you have but, by way of example, Barclaycard's terms and conditions specifically advise cardholders to allow for any potential interest charges to ensure that such charges don't result in the credit limit being exceeded:

Understanding the interest and fees on your account
• Please make sure you consider the interest and fees that will be added to your account at the time of producing your statement
• You should make sure you keep enough available balance to not go over your credit limit when these are added, otherwise an over credit limit fee will apply
• To help you do this, an estimate of the interest that will be charged the following month is included on your statement

https://www.barclaycard.co.uk/content/dam/barclaycard/documents/personal/existing-customers/Terms-and-Conditions-Core-0118.pdf

FestiveJoy

You may be dreaming, but nothing ventured, nothing gained.
Or put another way, if you don't ask you don't get

So give them a call and see if they will remove the charge for you.
It is, afterall, the season of goodwill to all, is it not?

:xmastree::xmastree::xmastree:

jd87

Phone and ask for a goodwill gesture for a (presumably) first offence. Don't immediately go for trying to spout laws and T&Cs at them.

jimbo26

Many financial institutions will waive a fee for a one off, worth a go.

Nebulous2

You're unlikely to get off with it, but you're not dreaming. A long time ago there was a lot of pressure put on banks about some of their practices and charges on charges was one of the biggest complaints. I'm thinking around the time of Gordon Brown as chancellor. A lot of institutions were encouraged / expected to produce voluntary charters, saying how they would treat people. I can't remember if any of them actually signed up to the charges on charges commitment, but if they did they'll have dropped it some time ago.

boo_star

Nebulous2 wrote: »

You're unlikely to get off with it, but you're not dreaming. A long time ago there was a lot of pressure put on banks about some of their practices and charges on charges was one of the biggest complaints. I'm thinking around the time of Gordon Brown as chancellor. A lot of institutions were encouraged / expected to produce voluntary charters, saying how they would treat people. I can't remember if any of them actually signed up to the charges on charges commitment, but if they did they'll have dropped it some time ago.

I don't think much happened other than when the OFT said they wouldn't take any of the card providers to court if they didn't charge over £12 for overlimits or late payments so they predictably all set their charges at £12.

stripeyfox

As others have said, you could ask, and if it is the first "offence" they may waive it. But you could end up in a discussion with them as to why you were so close to the limit. A maxed credit card is not a good thing. I would definitely make a lumpy payment first if you can to bring the account into a more respectable state.

And consider why you went over limit? Maybe there was a good reason - for example being stranded and having to use the card in an emergency might be a better indicator the card issuer rather than Christmas shopping.