Credit cards banning BitCoin
Comments
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Personally I would repeal S75 altogether. But given that would be politically impossible, I would tidy it up as follows:
1) Limit "cover" to twice the amount actually paid on the CC.
2) Remove the £100/item limit, but limit claims to £100.
3) Extend to additional cardholders.
4) Extend cover to any situation where the CC "truly" finances a transaction. Ie tidy up the situation where acceptance is via third parties such as paypal.
5) Remove cover for overseas merchants.0 -
Irritated34 wrote: »I see today on the news that credit card company's are refusing to give customers credit for bitcoin. This is great news, however it's a shame that MBNA didn't refuse me credit for Binary Options, I was scammed out of £18,000 and I now have to pay off this debt! Who's the winner here? Option.FM certainly, and of course MBNA, me? No, I'm now a nervous wreck, and in debt up to my neck!
Just in case you speculate in Bitcoin. In binary option BitCoin speculation you either win or lose. Some people are winners some are losers.
In case you speculate, currently yow make a lost. But supposed you win in the Big Coin Speculation
Are you going to initiate this thread ??
Are you going to return the gain you have made from this speculation to MBNA ??
When you apply for a credit card, did you tell them that you are going to use it to speculate in Bitcoin trading ??
Many people do not mind to speculate in Bitcoin but they are fully aware that it is a pure speculation. When they make a lost they will not start blaming other people but themselves. Similarly if they make a gain they take it for themselves..
The ability to take responsibility for their own action is the one which differentiate adults and children.0 -
I can see why they are doing it. I work in the cards industry and folk are losing money hand over fist via trading websites. Its a good move imo.0
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chattychappy wrote: »It is a tricky issue - the extent to which CCs, banks and others can get involved in protecting people from bad decisions
This has nothing to do with protecting people from themselves. It's banks protecting themselves!0 -
This has nothing to do with protecting people from themselves. It's banks protecting themselves!
I'm not sure this follows - why wouldn't credit card companies want people to run up big debts that they have to pay off? Bitcoin isn't a scam that banks have to refund, it's just a risky investment that a lot of people stand to lose out on.0 -
The OP gives a lot more away on their linked thread. They gambled £18,000 on a platform which from reading the pots further down advertises itself as being very risky. They bet high stakes and high risk and lost. They then tried the police, charge back and then s.75 and lost. Hence the debt.
This is the first post by the OP but if you read through it explains a lot more.
It reads like buying a lottery ticket and then expecting the credit card company to repay you if you lose...
http://forums.moneysavingexpert.com/showthread.php?t=5598916Irritated34 wrote: »Hello, I'm new to the forum so please excuse me if I get confused!
Back in July 2016 I joined a Binary Option site called Option.fm.
To cut a very long story short, I'm disabled and I was looking for a way to top up my monthly income as I have had to cut my working hours.
The company looked legitimate and I signed up.
Using their very clever ways, they promised that they could make me money by following the advice of their very experienced account managers.
I did what the advised, but by the end of August I had lost all of my deposits, amounting to just under £18,000.00
As soon as the account went down to next to nothing, I complained to the company but they did not help me. I contacted my credit card company, they were very sympathetic and after investigation started a chargeback. Last week they told me that it had been unsuccessful and that they were passing it onto Section 75. This department contacted me yesterday, and told me that they would have to contact the company involved, I stated that they would not get very far as this Binary options company were on many Internet forums, where other people had also been scammed. The gentleman at section 75 did not seem very interested, and did not inspire any confidence in me.
I am going out of my mind with worry, as I can not afford this debt on my very small income.
I have reported this scam to ActionFraud and have spoken to the police about this, they agreed that it was a scam.
I have done some research and understand that if the Section 75 claim fails I can then take it to the financial ombudsman but there are no guarantees.
If anyone can give me any advice I would be very grateful.
Thank you
It included a later quote where they quoted the companies own website saying how risky it was...OP, you won't want to hear this but I think you'll need to wave goodbye to your money. You have undoubtedly been misled but not (in my opinion) to the extent that your card company will be prepared to bail you out by accepting liability for your trading (gambling) losses, not least because even a cursory glance at that site comes up with prominent warnings about the risks involved in trading, see https://option.fm/risk-warning/ for example
Trading is Very Speculative and Risky. Trading in binary options is highly speculative, involves an outstanding risk of loss and is not suitable for everyone but only for those investors who:
(a) understand and are willing to assume the economic, legal and other risks involved.
(b) are financially able to assume the loss of their total investment
(c) have the knowledge to understand binary options trading and the underlying assets.
Customer represents, warrants and agrees that Customer understands these risks, is willing and able, financially and otherwise, to assume the risks of trading in binary options and that the loss of Customer!!! entire Account balance will not change Customer!!!
The risk warnings are still in there and cannot be any more clear what a high risk platform this is. https://option.fm/risk-warning/ Appears the OP got blown away in what they will spend their money on, gambled money they didnt have and lost 0 -
Going by some of the posts on M.S.E. Forums some people get a credit card but don't know what it is, what it's for and how to "work" it. In addition they probably;ly don't know where they've been, where they're going what day it is nor probably their own age and gender.
If card holders can't or won't protect themselves then the banks have to do it for them. Of course the banks are protecting themselves from irresponsible card holders running up large debts they don't have a cat-in-hell's chance of repaying!
Good move Lloyds Banking Group!0 -
I'm not sure this follows - why wouldn't credit card companies want people to run up big debts that they have to pay off? Bitcoin isn't a scam that banks have to refund, it's just a risky investment that a lot of people stand to lose out on.
That's exactly what they want... as long as you don't default and never pay it. They've calculated these debts have a high risk of going unpaid. Nothing more, nothing less.0 -
That's exactly what they want... as long as you don't default and never pay it. They've calculated these debts have a high risk of going unpaid. Nothing more, nothing less.
I believe it is "at least a little" more!
They fear a backlash from "irresponsible" lending. There is a lot of fuzzy grey law in regulation these days. Treating customers fairly, corporate social responsibility, facilitator liability, AML concerns etc. Now you can be as cynical as you like (I'm certainly cynical), but for some banks it's just not worth the risk - and these days by risk they don't just mean financial (as you say), but also reputational, regulatory or otherwise.0
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