Default for £60 CC Overspend without warning

phillw

Marleyuk said:
Why would they process the payment if it was going over her available limit? 

Not all transactions are online, telling a vendor they can't have their money because it would put their customer over their limit isn't exactly fair. If the transaction was online then I would argue that it should have been declined.

DCFC79

If a direct debit isn't in place then get 1 setup, it will prevent this happening since the letter says they didnt receive a payment on time.

Yahoo_Mail

xlnc99 said:

A few points

1 - There is no such 'law' in place that requires Virgin to put in such data to the CRA agencies. Its an obligation but fact is - its their discretion to change the information. All depends on if you catch them on a good mood.

The only time the law was mentioned was in relation to Virgin's legal obligation (yes, legal) to send a letter to the OP regarding their account going over its limit. But since we're on the subject of the law, the law does not say that data needs to be lodged with the CRAs (and nobody said it does as far as I can see) but it does say that it any data held must be accurate.  As not recording this overlimit would be contrary to that (the only way it could be recorded otherwise would be to say it was not over the limit which isn't accurate) then they certainly do have legal obligations regarding this data, just not the one you appear think someone has brought up  at some point before you in this thread.

Takmon

Marleyuk said:

bradders1983 said:

OP, i know its human nature to protect your wife but she has to shoulder some of the blame here, surely she knows the rough balance of her cards and the limits on them?

It’s £60... it’s linked to one payment. 

It’s an exceptionally easy oversight to have made, with the consequences significantly outweighing the crime.

With no notification or grace period, the banks duty of care to their customer is questionable.

I guess we’ll see how the FOS perceives it.

It's only an easy oversight to make if your wife has no idea of how to control her finances. I have never been within several thousand pounds of my limit in my entire life and if i was getting that close i would check before spending any money. 

phillw

Takmon said:
It's only an easy oversight to make if your wife has no idea of how to control her finances. I have never been within several thousand pounds of my limit in my entire life and if i was getting that close i would check before spending any money. 

Have you ever had a 0% for 20 month purchases card? It's quite easy to come within your limit.

Takmon

phillw said:

Takmon said:
It's only an easy oversight to make if your wife has no idea of how to control her finances. I have never been within several thousand pounds of my limit in my entire life and if i was getting that close i would check before spending any money. 

Have you ever had a 0% for 20 month purchases card? It's quite easy to come within your limit.

I've had many 0% purchase offer cards but I never seem to spend enough money too get near the limit. I got my last one when i purchased my current car but that was only £3k then a couple thousand on holidays and a few hundred pounds a month general spending but didn't get to the limit and with poor interest rates i didn't really benefit that much from the stoozing. 

PixelPound

Takmon said:

Marleyuk said:

bradders1983 said:

OP, i know its human nature to protect your wife but she has to shoulder some of the blame here, surely she knows the rough balance of her cards and the limits on them?

It’s £60... it’s linked to one payment. 

It’s an exceptionally easy oversight to have made, with the consequences significantly outweighing the crime.

With no notification or grace period, the banks duty of care to their customer is questionable.

I guess we’ll see how the FOS perceives it.

It's only an easy oversight to make if your wife has no idea of how to control her finances. I have never been within several thousand pounds of my limit in my entire life and if i was getting that close i would check before spending any money. 

Agree, I have a 0% spending card that I'm using whilst putting savings away but I get a nose bleed when it's approaching 50%.

It is all how you view credit though. If you have a balance of £900 on a card with a limit of £1000, some see it as they owe £900 whilst others see they have £100 left to spend.

GrahamsHill

Just as a thought, I went over my limit on my Capital One card earlier this year after using a pay at the pump for fuel in my car, not realising that it took £1 out at first then the full amount. I used it again afterwards and ended up £12 over my limit (bearing in my limit was only £200). Anyhoo, I accepted the mistake, paid the charge and the amount over the limit plus an extra £20 to get be well under and it wasn't reported to the CRAs because I'd cleared it before the statement date. When my statement was issued I had a balance of just under £180 which was reported to the CRAs and all was well. That's the only way I can see the OP's wife getting away with it, is if she brought the card back within her limit before the cut-off for the card statement date. 

FTBMish

Marleyuk said:

bradders1983 said:

It isnt a "default".

This is the letter they sent. The person at Virgin suggested it would appear on her credit file?

I had this letter when I accidently cancelled the wrong direct debit. I was in the process of applying for a mortgage and they added the £9 because the payment had failed. The payment was for £100. I realised quickly that I had cancelled the wrong payment so made a debit card payment of over the £100 to cover that payment (I had also made approx £1100 additional payments in the previous 30 days).
When I spoke to Virgin Money they  initially said they wouldn't reverse the charge but then said they would when they saw I had paid well above the amount due. 
When asked they told me it wouldn't go on my credit report. I haven't seen it show as yet but it was only last month. My mortgage application has been approved since.