Transaction allowed by Nationwide bank over credit limit

Redveedud

Nationwide have allowed PayPal to charge my credit card almost £600 above the credit limit and say it’s not there fault they allowed the transaction to go through well above my limit and ended my complaint. I paid a deposit for a holiday on my debit card and cancelled the card to ensure the final balance didn’t go through And I would just lose our deposit. I forgot I had done the initial payment through PayPal and even though I cancelled the card PayPal used my nationwide credit card. I called Nationwide and they said it would not go through as above limit but it went through! I they then asked me to pay £600 to cover the amount above my limit to ensure my credit file is not affected! Are they allowed to do this? Should they not have declined the transaction as being over my credit limit by so much? They say it’s PayPal responsibility, but surely they set my credit limit not PayPal?!

Wanderingpomm

Tell your bank you didn’t authorise the transaction 

soolin

Wanderingpomm said:

Tell your bank you didn’t authorise the transaction 

It sounds like they did authorise it though? 

OP not paying a final holiday payment isn’t the same as cancelling, did you notify the holiday company not to take payment ? if you do have written confirmation or any other proof that you have cancelled and told the company not to collect the final balance - then- you can declare it as an unauthorised transaction. 

Blackbeard_of_Perranporth

Redveedud said:

Nationwide have allowed PayPal to charge my credit card almost £600 above the credit limit and say it’s not there fault they allowed the transaction to go through well above my limit and ended my complaint. I paid a deposit for a holiday on my debit card and cancelled the card to ensure the final balance didn’t go through And I would just lose our deposit. I forgot I had done the initial payment through PayPal and even though I cancelled the card PayPal used my nationwide credit card. I called Nationwide and they said it would not go through as above limit but it went through! I they then asked me to pay £600 to cover the amount above my limit to ensure my credit file is not affected! Are they allowed to do this? Should they not have declined the transaction as being over my credit limit by so much? They say it’s PayPal responsibility, but surely they set my credit limit not PayPal?!

I wish people would stop cancelling their cards and thinks that is it. You were under contract to pay the final balance on your holiday and the company have done so. The fact you have not cancelled the holiday, did not prevent them from rightfully claiming the money due.

sharpe106

Just because you have a credit limit of £3,000 that does not mean that the credit company will accept up £2999.99 and then stop any transactions after that. Some do but they do not have too. If you read terms and conditions of the card it will state what will happen if you exceed the limit. But it looks like they have already told you.

gettingtheresometime

Just going to throw this into the mix - if nationwide had refused the PayPal payment then wouldn't PayPal come after the OP for payment anyway?

sharpe106

The holiday company would defiantly be going after the OP even if the card company declined it.

Geodark

gettingtheresometime said:

Just going to throw this into the mix - if nationwide had refused the PayPal payment then wouldn't PayPal come after the OP for payment anyway?

Yeah, I think so - dont you have to supply backup payment methods to paypal? A card and a bank account?

eddddy

Redveedud said:

 

I called Nationwide and they said it would not go through as above limit but it went through! 

If Nationwide really did say that, then they misled you. I guess that could be the basis of a complaint.

But they'd probably try to do a chargeback, which would cause you hassle with PayPal and the holiday company.

Redveedud said:

 

I paid a deposit for a holiday on my debit card and cancelled the card to ensure the final balance didn’t go through And I would just lose our deposit.

That's not correct - unless you had agreed that with the holiday company.

 If you fail to pay somebody the money you owe them, the debt doesn't go away.

 Just like if you fail to pay a £100 electricity bill, the debt doesn't go away - you still owe the £100. It would be the same with the holiday company. The holiday company would chase you for what you owe them, and maybe take you to court.

born_again

eddddy said:

Redveedud said:

 

I called Nationwide and they said it would not go through as above limit but it went through! 

If Nationwide really did say that, then they misled you. I guess that could be the basis of a complaint.

But they'd probably try to do a chargeback, which would cause you hassle with PayPal and the holiday company.

No they didn't.
Your limit is not a solid brick wall that can not be breached. They are telling the truth.

I very much doubt that they would do a chargeback, once OP explained the situation. OP owes money to holiday co. 

steampowered

The credit limit is there to protect the bank, more than to protect the customer. Banks do sometimes let you go over your credit limit.

I don't think the bank has done anything wrong here.

I would give the general life advice of not paying for stuff on credit, and not maxing out your credit card. If you do that you've got the double whammy of paying interest to your bank, and overpaying for things. Pay for your holidays up-front. If you can't afford to do that then save up, and you'll be able to afford it next year - with money to spare!