CC not allowed to go into credit.

dobsdave

Just got a notice of variation in my BOI Stg credit card.
Apparently I am now not allowed to go into credit.
If I make a payment that puts me in credit, it will be rejected!

Anyone hear of this before?
Is it a new EU law?

aujopimur

I think this is to stop money laundering.

dobsdave

aujopimur wrote: »

I think this is to stop money laundering.

I can understand that, but why aren't they doing it on their Irish cards also?
Do any other card issuers do this?

unclebill98

A Credit Card is not a current account. So credit balances are normally never allowed. The inforcement of this varies from bank to bank.

One of the main reasons is your if fraud is commited on your CC the excess balance is more exposure than the bank have allowed for.

GerardKeating

aujopimur wrote: »

I think this is to stop money laundering.

So if the OP pays his credit card balance in full at the end of the month, but unknowing to the OP a refund or some other credit arrives in advance of the payments, the payment will be rejected and then the OP gets charged a late payment fee?

Ste.phen

unclebill98 wrote: »

A Credit Card is not a current account. So credit balances are normally never allowed. The inforcement of this varies from bank to bank.

One of the main reasons is your if fraud is commited on your CC the excess balance is more exposure than the bank have allowed for.

My card explicity excludes the excess balance from being refundable in case of fraud, so i rarely leave it more than 100 or so in credit

I can leave mine in credit
It went 500 over as a charge hadn't come through yet to cancel it, but still


Seems bizarre they wouldn't let you especially if it's just due to timing

edit sorry I'm UB not BOI

dobsdave

unclebill98 wrote: »

A Credit Card is not a current account. So credit balances are normally never allowed. The inforcement of this varies from bank to bank.

One of the main reasons is your if fraud is commited on your CC the excess balance is more exposure than the bank have allowed for.

????
I have had various credit cards over the last 25 years from different companies.
I've never heard of a Bank refusing to let you go into credit.
My Irish euro BOI card does not have this condition.

Its nothing major for me personally, but I can see that it could leave people in some bother depending on circumstances.

unclebill98

dobsdave wrote: »

????
I have had various credit cards over the last 25 years from different companies.
I've never heard of a Bank refusing to let you go into credit.
My Irish euro BOI card does not have this condition.

Its nothing major for me personally, but I can see that it could leave people in some bother depending on circumstances.

As i said, it varies.

Normally those with cards years don't have an issue. But i've seen it with all cases. If you always loading the card you'll get a call. Like i said its a credit card and not a current account.

I've a BOI cc and no issues ever putting a few hundred onto the card. As for the OP's issue of the payment bouncing, that's something I've never heard.

dobsdave

unclebill98 wrote: »

As i said, it varies.....

Do you know of any cards that dont let you go into credit?

Random

i've never experienced this with my credit card (i've had aib and mbna) in ireland. they have warned me anytime i rang up and my card was in credit though that i wouldn't be covered etc etc for fraud etc etc.

unclebill98

dobsdave wrote: »

Do you know of any cards that dont let you go into credit?

Ulster Bank.

Random wrote: »

i've never experienced this with my credit card (i've had aib and mbna) in ireland. they have warned me anytime i rang up and my card was in credit though that i wouldn't be covered etc etc for fraud etc etc.

This is exactly what I mean. Its not allowed but its enforcement varies. If you loaded thousands your going to get a call about it.