Capital One Refusing to Honour Balance Transfer Requested on Application

[haggis1984]

Hey Caggers,

 

Applied for a Capital 1 credit card in order to transfer a balance onto a promotional 0% interest. On the application I put in the details of a balance transfer I intended to undertake.

 

Received the card today, and the credit limit is not high enough to accommodate the balance transfer. (Transfer amount is £1500, credit limit is £500).

 

Where do I stand? Do I have any recourse here? Surely by accepting my application with details of the balance transfer on it they agreed to supply a credit limit high enough to accommodate the transfer?

Edited May 14, 2012 by haggis1984

[haggis1984]

Spoke to the OFT. They stated that whether or not Capital 1 have to honour the balance transfer depends on their terms and conditions.

 

Section 4 of the credit agreement - balance transfers:

You may ask us to make balance transfers, which are subject to our prior approval, are for a minimum of £50 and can only be made to you (not the extra cardholder). We will debit to your account the amount of any transactions, interest, fees, costs, charges and expenses you must pay us under this agreement.

Did they grant approval by accepting the application with details of the balance transfer attached?

 

Does the balance transfer become an integral part of the contract?

 

When they offer a promotional rate on balance transfers is it implied that the primary reason for the application is to undertake a balance transfer?

Edited May 14, 2012 by haggis1984

[assisted blonde]

I dont think they have to give you a high enough limit to transfer the balance. capitol one do give a low starting balance as they are not a main lender and cater more for the sub prime industry. If your credit rating is ok try one of the main lenders as they usually have a much higher opening balance.

 

Although you may have put the amount you wished to transfer they may have decided that your credit scoring did not allow them to offer you a higher initial limit and I would say that in this case if it is not enough either call them and see if they can offer more or refuse the card.