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  1. #1
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    Is this illegal?

    This is more a wee debate that I am having with someone right now, than anything else.

    Okay, my mate says that if you, for example, had 4 credit cards, each with say a limit of 2km you could use one card, and then, before the month was due, when you had to pay interest, you would then pay that card off with the next one, and so on, moving the debt around the cards, if you follow.

    He says that it is NOT illegal, since the companies are getting paid, but surely that cannot be true, or right, since you are never actually paying for the item that you bought, not in reality...

    I am not even sure if you are allowed to pay one card off with another.

    Thoughts?

  2. #2
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    Re: Is this illegal?

    you can't pay off a credit card bill with another credit card directly. you could do a cash advance and withdraw cash from a credit card that way. There's usually a limit to how much you can withdraw per day/month, and the interest rate is usually moderately high. So technically you could do this for a while until the interest fees stack up and you'd be forced to pay those off.

  3. #3
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    Re: Is this illegal?

    Quote Originally Posted by Style
    you can't pay off a credit card bill with another credit card directly. you could do a cash advance and withdraw cash from a credit card that way. There's usually a limit to how much you can withdraw per day/month, and the interest rate is usually moderately high. So technically you could do this for a while until the interest fees stack up and you'd be forced to pay those off.
    Ha!

    The beers are mine.

    Thanks mate

  4. #4
    sojustask's Avatar
    sojustask is offline The Late, Great Lady Mod - Retired User Rank
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    Re: Is this illegal?

    My mother has done this for years, only she just moved higher interest rates balances to low intro rate cards. But you couldn't do that with 4 cards over and over. Balance transfers are usually a one time promotion.

    By the way, your money isn't anything either. Well, at least here in the states it isn't. It's a Federal Reserve "Note" and a Note is a debt. You are basically paying off one debt with tender for another.

    Lady Mod

  5. #5
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    Re: Is this illegal?

    I read someplace that you can technically write a cheque on anything, if you have an account, of course.

    In other words, you do not need to use the book that the bank issue, you could, in theory, write it on anything, as long as all the correct details were on it.

    Is that true?
    "Ethics" is simply a last-gasp attempt by deist conservatives and
    orthodox dogmatics to keep humanity in ignorance and obscurantism,
    through the well tried fermentation of fear, the fear of science and
    new technologies.
    There is nothing glorious about what our ancestors call history,
    it is simply a succession of mistakes, intolerances and violations.

  6. #6
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    Re: Is this illegal?

    Quote Originally Posted by enlightenment
    I read someplace that you can technically write a cheque on anything, if you have an account, of course.

    In other words, you do not need to use the book that the bank issue, you could, in theory, write it on anything, as long as all the correct details were on it.

    Is that true?
    Not any more. At one time you could use one of your deposit forms as a check since it also has your bank routing number and account number on it, but banks stopped honoring those as checks sometime in the mid to late 80's.

    To take it a step further... you could (but not any more) use a blank piece of paper as a check... same guidelines, you had to have your routing and account numbers on it.

    I used to work in check payment processing. I recall when the memo came out to return anything that was not an actual check.

  7. #7
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    Re: Is this illegal?

    Quote Originally Posted by PaulM
    Not any more. At one time you could use one of your deposit forms as a check since it also has your bank routing number and account number on it, but banks stopped honoring those as checks sometime in the mid to late 80's.

    To take it a step further... you could (but not any more) use a blank piece of paper as a check... same guidelines, you had to have your routing and account numbers on it.

    I used to work in check payment processing. I recall when the memo came out to return anything that was not an actual check.
    Thanks Paul.

    I remember in the 80's right enough, a man who was opposed to the UK "Poll Tax", a Thatcher (Think Bush in a dress), wrote a cheque on the side of a COW, or something mad like that!

    Here is another one.

    Let us say that you owed the IRS or whatever, $5000.

    Let us say that you had no bank account any longer, but were prepared to pay it in cash.

    If you showed up at their office, and paid in in bags of pennies (your lowest coinage), would they have to accept that?
    "Ethics" is simply a last-gasp attempt by deist conservatives and
    orthodox dogmatics to keep humanity in ignorance and obscurantism,
    through the well tried fermentation of fear, the fear of science and
    new technologies.
    There is nothing glorious about what our ancestors call history,
    it is simply a succession of mistakes, intolerances and violations.

  8. #8
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    Re: Is this illegal?

    IMO they probably would not accept it, even though it is legal coin.
    500,000 pennies or 250,000 rolls is an awful lot. Personally, if someone owed my $5000 and showed up with pennies I would not accept it. I'd have them take it to their bank and convert it to a counter check. I would not even acknowledge their attempt to pay. (if they showed up with it then they have a means to transport it... I don't) :)

  9. #9
    sojustask's Avatar
    sojustask is offline The Late, Great Lady Mod - Retired User Rank
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    Re: Is this illegal?

    Quote Originally Posted by PaulM
    IMO they probably would not accept it, even though it is legal coin.
    500,000 pennies or 250,000 rolls is an awful lot. Personally, if someone owed my $5000 and showed up with pennies I would not accept it. I'd have them take it to their bank and convert it to a counter check. I would not even acknowledge their attempt to pay. (if they showed up with it then they have a means to transport it... I don't) :)
    Oh yes they will. If you are willing to haul it into their office they will take it. They won't be happy about it but they will accept it.

    Lady Mod

  10. #10
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    Re: Is this illegal?

    I think, at least in the UK, they are legally bound to, since it is legal tender.
    "Ethics" is simply a last-gasp attempt by deist conservatives and
    orthodox dogmatics to keep humanity in ignorance and obscurantism,
    through the well tried fermentation of fear, the fear of science and
    new technologies.
    There is nothing glorious about what our ancestors call history,
    it is simply a succession of mistakes, intolerances and violations.

  11. #11
    Join Date
    Jan 2007
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    9

    Re: Is this illegal?

    Yes you can essentially "pay" one credit card with another one by means of cash advance, balance transfer or convneince checks that some credit cards also have and it is not illegal in the US. Ask any person who is about to head for bankruptcy and is in debt to their eyeballs the US slang term for it is called "robbing Peter to pay Paul" or "creative bookkeeping" but nothing illegal about it but eventually you will rack up enough in the fees for the advance/check/transfer that over time you will eventually run out of room on the creidt cards to keep doing it, but most people do it during times of financial hardhship such as temporary job loss, unforseen medical expenses, or when they are just so far in debt they don't make enough to pay the bills they already have and are headed down the bankruptcy road. There are also those who do it and move the balance owed to a new card every 6 months or so when they get a good offer of no interest for a certain perioid of time to pay the debt off faster and when the no interest period is over they get a new card from a different bank that has a similar offer and move the balance left to the new card with no interest and keep going on until they pay it off completely so that over the course of the debt being paid back they have paid it back without interest and hence paid it off much faster than they normally would have, but then they typically have the dilema of having all of these extra credit cards they don't need and can sometimes look like they are over extended on their credit reports because of all of the available credit to them even though there is eventually nothing owed on any of the cards.
    Last edited by Kyrsten; 01-12-2007 at 09:29 AM.

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