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Loren, Attorney
Category: Legal
Satisfied Customers: 34473
Experience:  30 years experience representing clients.
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Is a Bank allowed to give more money than the credit limit

Customer Question

Is a Bank allowed to give more money than the credit limit to an entity without permission ?????
JA: What state is this in? And when did the issue begin?
Customer: MA
JA: Has anything been filed or reported?
Customer: Reported yes, but not filed.
JA: Anything else you want the lawyer to know before I connect you?
Customer: This is the only question.
Submitted: 9 months ago.
Category: Legal
Expert:  Loren replied 9 months ago.

I am Loren, a licensed attorney, and my goal is to answer your question and provide you excellent service.

Expert:  Loren replied 9 months ago.

It would depend on the terms of the credit agreement, but, generally, they would have terms for advancing funds in excess of the limit under certain circumstances or even unilaterally increasing the credit limit.

Check the credit agreement. That is what would govern the situation.

Customer: replied 9 months ago.
The Credit Card was issued without asking for it and the over the Credit limit was given without any permission, or even any authorization.
Expert:  Loren replied 9 months ago.

Who used the card?

Customer: replied 9 months ago.
A car Rental Company.
Expert:  Loren replied 9 months ago.

No, I mean who gave the credit card to the rental co to use?

Customer: replied 9 months ago.
I met with an accident, and I was given this car. The Insurance company was suppose to pay the rental. Ever since it took longer to repair, therefore my Card was Charged over the credit Limit without any authorization.
Expert:  Loren replied 9 months ago.

Thank you for the additional information. I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.

Yes, the credit card agreement allows them the discretion to approve a charge which exceeds the limit of the card, if the charge is authorized by you. You authorized the rental co to use the card in the event of additional charges, including an accident, in the terms of your rental agreement.

Expert:  Loren replied 9 months ago.

I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.