Virgin nearly doubling the interest rate!

pshuttle · 30 January 2006 at 7:21PM

I have had a Virgin credit card for roughly a year now. I came home today to find a letter stating that "Your monthly interest rate will increase to 1.8735% - 24.9% PA". Previously my card was at about 15.9%.

That interest rate is absolutely disgusting and I will be moving my money elsewhere as soon as possible. :mad:

I have spoken to Virgin on the phone about this and the operator said nothing could be done about this rate - nor could she answer any questions regarding why the rate had suddenly shot up (other than pure sharp practice!). Well I am transfering my balance ASAP!

Just thought I should share it with you all.

Pete

mountainofdebt · 30 January 2006 at 7:52PM

I had this happen to me a few months back with my MBNA card (MBNA run the virgin card) and I was told it was simpley done after a review of the account.

I phoned them up and told them that I was less than impressed and after a conversation with a supervisor got the rate down a couple of %age points but not as low as I would have liked.

Loyalty seems to count for very little with MBNA.

The_Boss · 31 January 2006 at 1:21AM

Did you always make full repayment? I personally have never had a review of my account in almost 3 years and I have a mix of minimum, full and middle payments.

michaels · 31 January 2006 at 11:42AM

Call me cynical but...I am wondering if the rate hike happens to those who tend not to make full repayments - ie those who run a balnace and possibly can't just switch - what would be the point of putting the rate up for people who don't pay interest anyway?

dc · 31 January 2006 at 12:29PM

MBNA recently are quick to recognise a moneymaking opportunity and put on the pressure. Possibly because they are coming under pressure from US.

They used to be the most lenient CC outfit, high limits and loads of 0%, but times have changed.

They are bouncing folks by changing payment dates in the hope of a late payment charge, and increasing interest rates to people who don't seem to have the ability to pay off. Their customer services now,has a take it or leave it approach which only changes back to "yes sir, no sir" when they find that you don't need them.

Really gone down in my estimation.
dc

Paul_Herring · 31 January 2006 at 1:40PM

michaels wrote:

[...]what would be the point of putting the rate up for people who don't pay interest anyway?

To catch those who, for whatever reason, end up with an interest bearing balance? Aforementioned date swapping for those 0%'ers not on DD for example, or in my own case, not even bothereing to send out the statement. Or someone who gets caught short for a month?

Bear in mind, that some of those who do pay off the whole balance normally or don't 'need' to pay attention (0%ers) don't necessarily keep tabs on the current interest rate on their cards.

txu · 31 January 2006 at 8:18PM

I had a similar letter from Virgin yesterday, but they are only putting my interest rate up to 22.9%. Lucky me!

I am planning to transfer the balance ASAP!

Seems strange that they are putting people's interest rates up to different amounts though.

I couldn't find any info on the rise in interest rates on the website, Can't imagine why they don't want to advertise the new rates! ;-)

Mary_Poppins_7 · 31 January 2006 at 8:57PM

I had the same, and like mountainofdebt, I was told the increase was probably following a routine yearly review of my account.

I've had my Virgin cardfor over 2 yrs now. Took it out for 0% on BTs initially, (standard rate being 15.9%pa).

Have since taken advantage of low interest rates on other cards to clear Virgin, only transferring back to them when they've offered me low rates (eg 3.9% for 6 months), which has happened a couple of times.

Then last year got a statement saying I would have IR of 24.9% once offer over. Phoned yesterday as I'm having serious financial probs, have for now got interest rate of 17.9%pa.

I guess Virgin/MBNA have a "captive audience" to a large extent - one reason I've stuck with them is that minimum payments are interest charged + £5 - not a huge problem when interest is only around £30 per month (ie minimum payment £35).

It's a little bit different though when interest charged is £150 or more plus £5!!!

Mary Poppins

JoseChungsDoomsday · 7 February 2006 at 6:14PM

this is worrying! do any of you have the virgin atlantic card or just the normal one??

sashacat · 7 February 2006 at 7:18PM

mountainofdebt, hope you sort it out soon, but remember it and don't be loyal...it's the first thing I learn from this site.....they are all the same they all try and screw us

pshuttle · 4 May 2006 at 12:12PM

Very annoying this be careful.

After I had complained to Virgin Money, and they refused to lower interest rate or give an explanation as to why, I transfered the money from the account to another CC at 0%

I was left with about 20 quid in credit. I did not recieve the paperless statment via e-mail and I missed the last repayment of £5. This cost me £30 in late payment charges!!!!!

Outrageous.

I am glad I am finally free of them.

Pete

Virgin nearly doubling the interest rate!

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