Balance Transfer

Rob749

My wife has managed to accumulate £10000 on her M & S bank credit card. She hasn't worked for the last twenty years and is 75 yrs old. First thing how did she get a credit limit of £11900 on her card, with just a retirement income on a reduced State Pension as she didn't accumulate enough NI contributions, and can I dispute the fact she was allowed to accumulate that debt?

Second thing, I want to do a balance transfer to Barclaycard, she is an additional card holder, they are offering me 3.8% fee and 0% until April 25. I realise there are some better offers out there for longer period, but if I open a new credit card account with the better offer, can I do a balance transfer to that card, even though its in my name, and the M & S is in hers, plus would I get a large enough credit limit on the new card? Ideally need a longer period. Any suggestions welcome. Thanks

retiredbanker1

When did she open the M&S card? Back in the day it was easier to get higher limits especially if there was nothing bad on her credit report.
You need to ask Barclaycard whether they would accept this transfer before you start - her being an additional name on your card is not relevant - it becomes your debt absolutely if you get accepted. (Some lenders will not accept debt from a 3rd party).

Then this becomes awkward because I feel you need to sit down with her and find out what the money has been spent on? Is it just topping up the weekly shop or is there an alternative reason (gambling - bingo etc)?

Once you know where the money has gone and she changes her spending habits I'm sure you can work it out - although with debt that high if she claims that she cannot repay speak to a debt charity about the possibility of an IVA?

CliveOfIndia

Rob749 said:

can I dispute the fact she was allowed to accumulate that debt?

Not really.  It's not the same as a "mis-sold loan" - no-one forced her to run up the debt, her credit limit would have been based on her credit history and debt/income ratio.

Rob749 said:

if I open a new credit card account with the better offer, can I do a balance transfer to that card, even though its in my name, and the M & S is in hers

Strictly speaking, no.  But anecdotally, if you do the BT online (rather than over the phone), usually it's not a problem to transfer a balance from someone else's card to you own.  Of course, the debt then becomes solely your responsibility - probably not an issue if (if I'm reading between the lines correctly) you're in a stable relationship and she's not likely to run off with the milkman anytime soon.

Rob749 said:

would I get a large enough credit limit on the new card?

Who knows?  A lender will assess you based upon your income/debt, your credit history and their lending policies.  There's no harm in doing a few eligibility checks, ideally on a lender's own website rather than a third-party aggregator.  Whilst by no means a guarantee, it should at least give you a reasonable estimate of whether you're likely to be accepted and what sort of credit limit you'd be offered.

DullGreyGuy

Rob749 said:

My wife has managed to accumulate £10000 on her M & S bank credit card. She hasn't worked for the last twenty years and is 75 yrs old. First thing how did she get a credit limit of £11900 on her card, with just a retirement income on a reduced State Pension as she didn't accumulate enough NI contributions, and can I dispute the fact she was allowed to accumulate that debt?

Second thing, I want to do a balance transfer to Barclaycard, she is an additional card holder, they are offering me 3.8% fee and 0% until April 25. I realise there are some better offers out there for longer period, but if I open a new credit card account with the better offer, can I do a balance transfer to that card, even though its in my name, and the M & S is in hers, plus would I get a large enough credit limit on the new card? Ideally need a longer period. Any suggestions welcome. Thanks

When did she open it? What did she declare her income was then? Has she correctly been informing them when her income changed?

You need to speak to Barclays on if you can transfer from a card not in your name. Many banks prohibit it and since the changes with OpenBanking it's much easier for them to enforce it. This may push you down the money transfer route but requirements for them tend to be stiffer/limits lower. 

cymruchris

Rob749 said:

My wife has managed to accumulate £10000 on her M & S bank credit card. She hasn't worked for the last twenty years and is 75 yrs old. First thing how did she get a credit limit of £11900 on her card, with just a retirement income on a reduced State Pension as she didn't accumulate enough NI contributions, and can I dispute the fact she was allowed to accumulate that debt?

Second thing, I want to do a balance transfer to Barclaycard, she is an additional card holder, they are offering me 3.8% fee and 0% until April 25. I realise there are some better offers out there for longer period, but if I open a new credit card account with the better offer, can I do a balance transfer to that card, even though its in my name, and the M & S is in hers, plus would I get a large enough credit limit on the new card? Ideally need a longer period. Any suggestions welcome. Thanks

Does your wife mention how she spent the £10k?

Usually credit card limits go up automatically if the provider thinks the holder is managing the account favourably - based on what they know and see. You can usually opt out of this fairly easily. Have you ever updated them on your personal circumstances? How long have you had the card?

To be fair - there's nothing you've said that would give rise to an irresponsible lending complaint or anything similar as far as I can see, just the usual pattern of someone buying things, making payments and over time credit limit increases being issued.

For any new card - nobody knows what credit limit you'll get until you apply. Some card providers now give guideline credit limits when you complete their eligibility checks - so that might be an avenue worth looking at. (From memory, MBNA, Halifax, Lloyds, Santander, Nationwide, Natwest, RBS all do this - there may be others).

From what I've read here - a balance transfer between husband and wife's cards do seem to work - but you might have to call them to clarify. (After all they just send a wad of money to whichever card detail  you provide).

Rob749

retiredbanker1 said:

When did she open the M&S card? Back in the day it was easier to get higher limits especially if there was nothing bad on her credit report.
You need to ask Barclaycard whether they would accept this transfer before you start - her being an additional name on your card is not relevant - it becomes your debt absolutely if you get accepted. (Some lenders will not accept debt from a 3rd party).

Then this becomes awkward because I feel you need to sit down with her and find out what the money has been spent  on? Is it just topping up the weekly shop or is there an alternative reason (gambling - bingo etc)?

Once you know where the money has gone and she changes her spending habits I'm sure you can work it out - although with debt that high if she claims that she cannot repay speak to a debt charity about the possibility of an IVA?

Thanks, there's definitely not a problem, there been no spending on the card for years, think the interest just got on top of her, paying minimum payments for years, she's been paying £300 a month for a long time now, but at high interest rate would take quite a while to pay off. I can see her bank details, definitely no problems now. I'll pay a few thousand off, and she will pay off the rest on a 0% rate. I'm not bothered now about the past debt, just want to sort it out.
Don't think there'll be a problem with Barclaycard she's on the account anyway, but it will be my debt as someone said.

Rob749

DullGreyGuy said:

Rob749 said:

My wife has managed to accumulate £10000 on her M & S bank credit card. She hasn't worked for the last twenty years and is 75 yrs old. First thing how did she get a credit limit of £11900 on her card, with just a retirement income on a reduced State Pension as she didn't accumulate enough NI contributions, and can I dispute the fact she was allowed to accumulate that debt?

Second thing, I want to do a balance transfer to Barclaycard, she is an additional card holder, they are offering me 3.8% fee and 0% until April 25. I realise there are some better offers out there for longer period, but if I open a new credit card account with the better offer, can I do a balance transfer to that card, even though its in my name, and the M & S is in hers, plus would I get a large enough credit limit on the new card? Ideally need a longer period. Any suggestions welcome. Thanks

When did she open it? What did she declare her income was then? Has she correctly been informing them when her income changed?

You need to speak to Barclays on if you can transfer from a card not in your name. Many banks prohibit it and since the changes with OpenBanking it's much easier for them to enforce it. This may push you down the money transfer route but requirements for them tend to be stiffer/limits lower. 

I've checked with Barclays, it's fine. Just have to up my credit limit, if I want to use it, which is probably the easiest. Will pay a lump off it after BT, then wifey will pay in monthly, should just about get it cleared by Barclays end date.

fatbelly

Rob749 said:

My wife has managed to accumulate £10000 on her M & S bank credit card. She hasn't worked for the last twenty years and is 75 yrs old. First thing how did she get a credit limit of £11900 on her card, with just a retirement income on a reduced State Pension as she didn't accumulate enough NI contributions, and can I dispute the fact she was allowed to accumulate that debt?

Yes

https://debtcamel.co.uk/refunds-catalogue-credit-card/

fatbelly

retiredbanker1 said:

Once you know where the money has gone and she changes her spending habits I'm sure you can work it out - although with debt that high if she claims that she cannot repay speak to a debt charity about the possibility of an IVA?

What makes you think an IVA would be suited to her, given what we know?

retiredbanker1

fatbelly said:

retiredbanker1 said:

Once you know where the money has gone and she changes her spending habits I'm sure you can work it out - although with debt that high if she claims that she cannot repay speak to a debt charity about the possibility of an IVA?

What makes you think an IVA would be suited to her, given what we know?

It's an option . I was the first to respond to his post - a lot more information has come to light since I posted.

Martico

retiredbanker1 said:

fatbelly said:

retiredbanker1 said:

Once you know where the money has gone and she changes her spending habits I'm sure you can work it out - although with debt that high if she claims that she cannot repay speak to a debt charity about the possibility of an IVA?

What makes you think an IVA would be suited to her, given what we know?

It's an option . I was the first to respond to his post - a lot more information has come to light since I posted.

And more often than not a poor option. Probably best not proposed in the absence of information