Can't use credit card to pay mortgage - is this correct ?

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phantom60

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For the last few months I've been using my credit card to pay my monthly mortgage amount.
What I have been doing is transferring the full amount to my credit card account and then on the same day paying the mortgage over the phone with my credit card.
Therefore, this has not been affecting my credit card balance.
Both my mortgage and credit card account are with Ulster Bank.
The reason I've been doing this is to build up points with my Ulster Bank credit card - these points can then be used for vouchers/flights/hotels etc.
So I ring up today to pay with my credit card and they tell me that I can't do this any more. They say they can't accept mortgage payments from a credit card any more. I asked why I didn't receive any notification about this and the lady I was talking to said there was a new law passed and there was nothing they could do about it. I then asked her could they send me some notification and she said no they wouldn't be sending any.

Has anyone heard of this ? Or is this even allowed ?

I'm raging about this as I've now had to pay with my laser card, having already transferred the money to my credit card account, leaving my laser card account short on money in the run up to christmas.
 
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It is generally not a good idea to pay one's mortgage from one's credit card. I am surprised that it was allowed in the first place.

If Ulster Bank is offering a points system, it is primarily for using your card outside Ulster Bank. Your scheme, while clever, is artificial and they are right to close it.
 
I understand thats its generally not a good idea to pay a mortgage from a credit card account as you normally be paying a lot more interest on your credit card. But in this instance I was paying the exact amount back in to my credit card account immediately so I was not paying any credit card interest on my mortgage payment.

If they are right to close it, are they not obliged to give me notice as I did not break any terms/conditions ?
Are they not blatantly lying by saying there's a new law passed ?
 
If you have surplus funds in the CC a/c just use an atm to take it out? (though check your T&cs). I know I wouldnt be charged with my BOI CC

S.
 
Thanks suzie, but unfortunately I don't have a surplus in my credit card a/c.
So if I want to withdraw cash I now have to pay both the cash advance fee and the high interest on the withdrawal.
 
phantom60 said:
Are they not blatantly lying by saying there's a new law passed ?
Click to expand...
The [broken link removed] should be able to tell you of any new or existing laws/regulations/guidelines. They could also advice you as to how about getting your bank to send you confirmation in writing of revised terms & conditions.
 
Was in touch the Financial Regulator's office today. They said there hasn't been such a law passed. They gave me the details of a guy in UB to contact and told me to ask him to show me where it is in legislation, so gonna ring him tomorrow. They also said if UB were making any change that affects me they are obliged to give me a months notice.
 
As far as I know, Visa do not allow payments for credit facilities on their cards, be it a Visa Credit/Debit Card. Ulster Bank were using some loophole over the past few months, but got found out. I am open to correction butn none of the Banks can accept a Visa Card for loan repayments of any type at present. Laser is the only acceptable card type, which is unfortuante as it is being phased out.
 
Thanks NorfBank.
Rang them this morning. They told me that its in the terms and conditions of UB mortgages that the mortgage has to be paid by direct debit. Gonna check my T's&C's this evening.
She said the main reason for this is that manual payments can take a few days to clear and this can cause arrears. This definitely did not apply to my case as my payment is not due until the end of each month and I had been making the payment at the end of the first week of each month.
I've no problem with having to set up a Direct Debit if its in the T's & C's. But I do have a problem with them blatantly lying to me by saying there's a new law passed and also not giving me notice that they wouldn't accept payment by credit card.
Anyway, the person I was talking to this morning said they would try to chase up with the person I was talking to on Monday and get back to me.

Quest - thanks for the info. It's a Mastercard I've been using though.
 
Credit cards issued by a Republic of Ireland card provider should not be used to repay debt, as this is in contravention of the VISA and Mastercard scheme rules applicable
 
Thanks rameire.
Can you tell me where I could find this information ?
I've had a look at the Mastercard Rules documentation but couldn't find it.
 
Finally got in touch with the UB person who was dealing with the issue, after days of trying.
She said more or less the same as rameire - in her words you "cannot use debt to pay debt". It's a new rule just brought in by VISA and Mastercard.
Would've been nice if VISA and Mastercard would give people notice of this though.
 
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