Watch your limit this Christmas – Banking Ombudsman

12 December 2014

Watch your limit this Christmas – Banking Ombudsman

Banking Ombudsman Deborah Battell is urging people spending up this Christmas to be sure they stick within their credit card limits and make sure they keep their cards safe.

“Last year, disagreements about credit card lending increased from just over 10 percent to nearly 20 percent of all lending disputes. These disputes included customers who could not afford to repay their credit card debt or who had exceeded their limits and incurred fees. At the same time, national statistics show credit card spending continues to rise.

“Christmas is one of those times financial pressure can mount and unfortunately for some, they end up in dispute with their bank over their debt and we hear from them in the New Year. It’s important you know your credit card limits, can afford to repay borrowing and are aware of the obligations you have agreed to.”

Ms Battell said in a recent case a complainant, who had a credit card debt she may have been struggling to pay, tried to argue that because the bank could not produce her original application form for the card, she was not liable for the debt. Her case could not be upheld because she had:
• received statements for years before querying the card
• made card purchases for many years
• made regular payments towards the card balance.

In addition, the bank had adequately disclosed card terms and conditions so the customer would have been aware she was liable for any card debt.

The Banking Ombudsman Scheme also gets complaints from people who have been found liable for debt racked up on their card by unauthorised users when their bank says they should have been more careful.

“Remember to keep your credit and debit cards safe at all times, keep your PIN to yourself, try to make sure nobody sees you keying in your number, and query any spending you can’t account for on statements. Your bank should then see you right if there’s unauthorised spending on your card.

“But if it appears you have not taken enough care with your card, be prepared to pay for any losses you incur,” Ms Battell said.

For more information read our Quick Guide on Looking after your credit and debit cards and PINs.

ENDS

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