13 February 2008

Credit cards are weird

Last two ’plane flights & train ticket suddenly jumped into the credit card together last night, leaving /ME wondering why they hadn’t landed earlier — like, before I flew or railed? Days or weeks ago?

Happily, I happened to have a few $ (added the same night to a different account) to cure the slight over-run it caused, but this adds another question: credit cards have limits, why did MasterCard let it go over, no questions, no reminders?

Works out well this time, but might not on another. Will wait & see.


Swart said...

A number of years ago I cancelled a credit card when I was moving interstate. About two years later I received a call from the Banks debt collection agency telling me I was three times over my credit limit on that card. I explained that the card was cancelled, however apparently credit cards are NEVER cancelled. Turns out my old ISP continued to debit my card without my permission. I asked why they continued to accept payments beyond the credit limit and apparently that limit is at the banks discretion. However, each payment they approved was accompanied by $75 work of charges from the bank.

- Beware!

Leon Brooks said...

The “NEVER cancelled” part is a tad worrisome.

senectus said...

Leon, I sen this to my SWMBO, whom has worked in the Banking industry with NAB and PNCS for the last 8 years or so... she know her stuff.
she said:
it depends on the bank...
NAB will not allow transactions to be completed if the limit is canceled. HOWEVER, it is your responsibility as the card holder to ensure all direct debits are canceled before canceling the card.
As far as the bank is aware, you have still given permission for that company to debit your card, and they are not allowed to stop those payments if the card is still active. IF you have canceled the card, they will dishonor the payments, but you will get charged fees for the dishonor.
Charges made on CC's can take anywhere from 3 days to 7 business days to appear on the card.
You can actually occur more debt than previously approved as an overdraft.
These are normally only allowed if you have a proven track record and can be taken away at the banks whim.
Hope that helps.

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debt collectors said...

For consumers, it is very important to know the limits of credit card. They should ask the credit car agency about the limit because it is their right to know.