Responsible lending by credit card to problem gambler? Your opinions please?

Jimby509

Hi all.  Please can I have your opinions?

I have had a certain credit card for about 6 years.  Every payment has been made on time.  It has a limit of over £10,000.

I am also a problem gambler and had used the card to use at online casinos.  Over the years I lost many £1000's to this.  But I blocked myself from all UK licenced casinos and UK licenced casinos stopped accepting credit cards which really helped me gain control.

However I really had developed a gambling issue and in late 2022 started depositing large amounts to overseas unregulated casinos from my credit card.  The trasactions descriptions and merchant codes didnt say the trasactions were gambling so were not stopped by my credit card that had a gambling transaction block on.  I would take a loan and pay off the credit card then max out the card again.

Last year I hit rock bottom and had a full on breakdown due to this addiction.  I sought help from  family, GP and various organisations.

In October 2023 I called the credit card company advising that I had a gambling problem and can this information be added to my file.  I also explained that the transactions were to overseas online unlicensed casinos who tried to bypass the system by using shill companies and incorrect merchant category codes.  They asked if I was getting help for the addiction and I told them I was.

The credit limit was kept at over £10,000

A few months later and I started to gamble with the card again.  Making up to 10 or 12 £400 big deposits to overseas casinos over a few days.  These would show up as transactions to China the US ect for 'education services', 'home furnishings' so dodgy sites could get around the credit card issue.  Some of these deposits never even turned up and I had to contact the credit card to try and get them back.

Early last week I again called the credit card company and explained my ongoing gambling issue and asked them to block ALL future transactions on the card.  I also sent a cover letter to their disputes team asking for all transactions to be blocked until I got proper treatment, I know this was reviewed.

Later on last week I called again and support confirmed that my card was not activated.  I told them this was good and I did not want to be allowed to use the card.

Then of course I slipped up.  I tried to use the card (I destroyed the physical card but have the card details on an app) and it worked.  A few hours and a few thousand £ gone missing, I managed to delete the app and details to prevent me losing more.

I am responsible for this and I am not trying to say 'poor me give me back the £10,000's' I have lost over the years.

However I am really upset that though I was honest and open with the credit card company and asked for help they still did not prevent my using the card after months of my issues being reported on their file and be being told that my card was not activated.

Is this really responsible lending?

grumbler

If the card really was blocked and they did confirm this, then I think you have a case. Start with a formal complaint.
That said, many apps have options of freezing and unfreezing your card.

born_again

grumbler said:

If the card really was blocked and they did confirm this, then I think you have a case. Start with a formal complaint.
That said, many apps have options of freezing and unfreezing your card.

I feel for the Op in these situations.

If as OP has said

.  The trasactions descriptions and merchant codes didnt say the trasactions were gambling so were not stopped by my credit card that had a gambling transaction block on.

Then CC can not know that these retailers are gambling companies.
Systems work via the catsic codes.

In April 2020 gambling was banned in UK on Credit Cards.

While yes they can complain & yes they should. I'm not sure that even FOS could hold CC liable for a retailer deliberately miss reporting their business.

Jimby509

Thanks both.

grumbler....  The exact words of the Credit card customer support were that 'the card is not activated'.  This was after I asked that ALL transactions be made impossible due to my issues.

born_again said:

grumbler said:

If the card really was blocked and they did confirm this, then I think you have a case. Start with a formal complaint.
That said, many apps have options of freezing and unfreezing your card.

If as OP has said

.  The trasactions descriptions and merchant codes didnt say the trasactions were gambling so were not stopped by my credit card that had a gambling transaction block on.

Then CC can not know that these retailers are gambling companies.
Systems work via the catsic codes.

In April 2020 gambling was banned in UK on Credit Cards.

While yes they can complain & yes they should. I'm not sure that even FOS could hold CC liable for a retailer deliberately miss reporting their business.

I can absolutely see that the CC can't be held responsible for a merchant using the wrong merchant code. They don't know it's gambling, to the CC it looks like a payment for home furnishings or education course 

It is the fact that I explained the issue to the CC company that the wrong codes were being used and I asked them that I be restricted from making ANY transactions on the account because of this as I had lost control.

But they still, apparently, didn't restrict my account.

born_again

It is the fact that I explained the issue to the CC company that the wrong codes were being used and I asked them that I be restricted from making ANY transactions on the account because of this as I had lost control.

Sadly no provider has the facilities to manually monitor a account & check every transaction & retailer involved. Yes they should be able to block all transactions.
I wonder if the block was simply to stop & not replace to you, but would add the new card details in the app. As some CC systems do not have a simple block all spending. System needs to be tricked.

Your best tack for a complaint, could be on the basis that when you told them. Which such a high limit, you would have expected them to reduce the limit. 

As I said, complain & see where it goes, just do not go forward on the incorrect catsic code on it's own. I would add into the complaint, just how did they do the block. Was it by the above method, or some other method?

retiredbanker1

Since 14th April 2020 you should not have been able to gamble online or offline using a UK issued credit card.

Is the gambling for sites domiciled abroad (even though they might look like a UK site)?

Jimby509

born_again said:

It is the fact that I explained the issue to the CC company that the wrong codes were being used and I asked them that I be restricted from making ANY transactions on the account because of this as I had lost control.

Sadly no provider has the facilities to manually monitor a account & check every transaction & retailer involved. Yes they should be able to block all transactions.
I wonder if the block was simply to stop & not replace to you, but would add the new card details in the app. As some CC systems do not have a simple block all spending. System needs to be tricked.

Your best tack for a complaint, could be on the basis that when you told them. Which such a high limit, you would have expected them to reduce the limit. 

As I said, complain & see where it goes, just do not go forward on the incorrect catsic code on it's own. I would add into the complaint, just how did they do the block. Was it by the above method, or some other method?

Thanks for the reply.   I agree, it is too much to expect the CC to check each transaction.  The wrong catsic code isn't the CC fault.
I am not sure how they attempted to block.  I just know I asked them for a complete block for this over the phone and via email.  I know this email request was read.
I was told the card was 'not activated' over the phone to which I replied 'great I don't want it to be activated'.  The CC number was not replaced.

Thanks for your advice.  I'll raise the issues you mentioned.

retiredbanker1 said:

Since 14th April 2020 you should not have been able to gamble online or offline using a UK issued credit card.

Is the gambling for sites domiciled abroad (even though they might look like a UK site)?

Yes, the gambling sites were overseas.  Or at least not licensed in the UK.  Crazy that I used them but the compulsion to gamble was too much and I had excluded from all UK licenced providers.  The CC would not have known they were gambling transactions.

retiredbanker1

Jimby509 said:

born_again said:

It is the fact that I explained the issue to the CC company that the wrong codes were being used and I asked them that I be restricted from making ANY transactions on the account because of this as I had lost control.

Sadly no provider has the facilities to manually monitor a account & check every transaction & retailer involved. Yes they should be able to block all transactions.
I wonder if the block was simply to stop & not replace to you, but would add the new card details in the app. As some CC systems do not have a simple block all spending. System needs to be tricked.

Your best tack for a complaint, could be on the basis that when you told them. Which such a high limit, you would have expected them to reduce the limit. 

As I said, complain & see where it goes, just do not go forward on the incorrect catsic code on it's own. I would add into the complaint, just how did they do the block. Was it by the above method, or some other method?

Thanks for the reply.   I agree, it is too much to expect the CC to check each transaction.  The wrong catsic code isn't the CC fault.
I am not sure how they attempted to block.  I just know I asked them for a complete block for this over the phone and via email.  I know this email request was read.
I was told the card was 'not activated' over the phone to which I replied 'great I don't want it to be activated'.  The CC number was not replaced.

Thanks for your advice.  I'll raise the issues you mentioned.

retiredbanker1 said:

Since 14th April 2020 you should not have been able to gamble online or offline using a UK issued credit card.

Is the gambling for sites domiciled abroad (even though they might look like a UK site)?

Yes, the gambling sites were overseas.  Or at least not licensed in the UK.  Crazy that I used them but the compulsion to gamble was too much and I had excluded from all UK licenced providers.  The CC would not have known they were gambling transactions.

You asked whether the credit card company has acted responsible towards you - IMO they have - to be honest I;m surprised they have not blocked your card to protect themselves and you.

Jimby509

retiredbanker1 said:

Jimby509 said:

born_again said:

It is the fact that I explained the issue to the CC company that the wrong codes were being used and I asked them that I be restricted from making ANY transactions on the account because of this as I had lost control.

Sadly no provider has the facilities to manually monitor a account & check every transaction & retailer involved. Yes they should be able to block all transactions.
I wonder if the block was simply to stop & not replace to you, but would add the new card details in the app. As some CC systems do not have a simple block all spending. System needs to be tricked.

Your best tack for a complaint, could be on the basis that when you told them. Which such a high limit, you would have expected them to reduce the limit. 

As I said, complain & see where it goes, just do not go forward on the incorrect catsic code on it's own. I would add into the complaint, just how did they do the block. Was it by the above method, or some other method?

Thanks for the reply.   I agree, it is too much to expect the CC to check each transaction.  The wrong catsic code isn't the CC fault.
I am not sure how they attempted to block.  I just know I asked them for a complete block for this over the phone and via email.  I know this email request was read.
I was told the card was 'not activated' over the phone to which I replied 'great I don't want it to be activated'.  The CC number was not replaced.

Thanks for your advice.  I'll raise the issues you mentioned.

retiredbanker1 said:

Since 14th April 2020 you should not have been able to gamble online or offline using a UK issued credit card.

Is the gambling for sites domiciled abroad (even though they might look like a UK site)?

Yes, the gambling sites were overseas.  Or at least not licensed in the UK.  Crazy that I used them but the compulsion to gamble was too much and I had excluded from all UK licenced providers.  The CC would not have known they were gambling transactions.

You asked whether the credit card company has acted responsible towards you - IMO they have - to be honest I;m surprised they have not blocked your card to protect themselves and you.

Thanks.  I just wish that they had actually blocked my card to protect themselves and me.  That is what I categorically asked them to do and explained my reasoning.  Though I have to admit this is my problem and my doing.

Arents

I believe that banks should be more responsible in such cases. If a client directly reports an addiction and asks to restrict access to credit, this should be a clear signal for action. Otherwise, it looks like deliberate indulgence in the problem for the sake of profit.

retiredbanker1

Arents said:

I believe that banks should be more responsible in such cases. If a client directly reports an addiction and asks to restrict access to credit, this should be a clear signal for action. Otherwise, it looks like deliberate indulgence in the problem for the sake of profit.

You are not able to spend money on a credit card in UK for gambling purposes.
This has been the case for a few years now.