Positive balance on credit card - effect on s75 claims

ERICS_MUM

Say someone has a positive balance on their credit card caused by a refund or over payment.  Obviously this will be used when the credit card is used.  If the goods or services bought are not “satisfactory” would s75 apply even though strictly speaking the credit limit on the card was not used ?

thanks

cymruchris

I don't know the answer - but if the positive balance is significant, why not get it credited back to your current account? I would hazard a guess that any spend on the card is covered no matter what. If it's a few pounds, spend it away, but if it's in the hundreds or thousands I would definitely be getting it back into my bank account.

born_again

Usually you are not be allowed to put your CC in a credit position, even is a breach of many T/C to do this.. But it would have a effect on a S75 as you are no longer borrowing funds.

cx6

don't forget you only have to pay part on credit to get s75 protection

eg if your positive balance was £500 and you bought something for £501 you would be covered.

Brie

Odd - I can't find anything about what your balance may or may not be in relation to the price of an item on anything about S75.  Everything seems to point to "using your credit card to make a purchase" rather than borrowing money from a card provider to make a purchase.  This would say to me that the card balance - credit or debit - is immaterial.

cx6

I think.your s75 rights arise when you buy something on credit - doesn't have to be a credit card of course it could equally be another form of credit finance.

phillw

ERICS_MUM said:

Say someone has a positive balance on their credit card caused by a refund or over payment.  Obviously this will be used when the credit card is used.  If the goods or services bought are not “satisfactory” would s75 apply even though strictly speaking the credit limit on the card was not used ?

I wouldn't risk it, an over payment especially. You will only find out when it's too late.

FeaturelessVoid

cx6 said:

I think.your s75 rights arise when you buy something on credit - doesn't have to be a credit card of course it could equally be another form of credit finance.

Correct, and if you use a credit balance you have no S75 protection.

born_again

Best bet call card co & ask them.