Balance Transfer Fees – Misinformed by customer service?

MSE_Martin · 15 August 2005 at 3:58PM

Balance Transfer Fees – Misinformed by customer service?

In the Balance Transfers article on this site, my top pick cards are those which offer long 0% transfer offers without charging a hideous fee for the privilege, namely RBS , Natwest and Lloyds Platinum.

However, I get numerous emails, and see a lot of forum comments from people who have been told by customer services at the above banks that a 2% fee will be charged for any balance transfer.

Therefore, I thought I’d put this note together about it (it’s primarily just me publicising the general advice given in this forum about this issue, as I think it’s spot on).

First thing to know - I'm right, they're wrong

This isn't a trite statement, I've been 100% personally reassured by the senior powers at the various banks that no BT fee will be charged when you use these cards during the 9 month intro period.

What if they tell you differently

So, when you call up to arrange your transfer, ask the person you’re dealing with whether a fee will apply.

If they tell you that it will, politely end the call, and dial up again. Do this again, and again, until you get the right answer! Make sure you get the name of the wonderful representative who gave you the happy news, and go through with your fee free transfer.

In case you’re wondering why this happens, it’s simply the case that, on occasion, customer service representatives aren't briefed properly. They're often working in a call centre on various different products and most customers are so ill informed, they take what they're given.

If that still doesn't work

Escalate. Ask to speak to someone senior and get absolute clarification, tell them about this website and that the info comes direct from their senior management.

One thing not to confuse it with

We're talking about balance transfer fees here. However you may be charged for doing a super-balance transfer in some circumstances and that is legitimate.

MrLew · 18 August 2005 at 1:30PM

Nice one Martin,

I've had the same experience before with car insurance (especially the AA).

I'll push them for a further discount and if none's forthcoming i end the call. Ring up again, speak to someone different and end up with another 10 % off.

I say push them as far as you can [ preferably over a cliff ;o) ]

Clariman · 18 August 2005 at 2:23PM

Martin

Thanks for the clarification. If you speak to the powers that be at Virgin/MBNA again in the near future, it would be very interesting to know what their position is on the recent Ts & Cs changes that many MBNA Platinum card holders have been getting. As you may be aware they state that they have introduced a new category called Money Transfer (i.e. SBT) which is chargeable pretty much as a cash transaction. This is obviously disappointing to those who stooze or anyone who wants to have additional money in their bank account for whatever reason. However, the poll we have been conducting on the stoozing website currently shows that no Virgin customers have had their Ts & Cs changed. Is this a timing thing or a different policy on behalf of the Virgin/MBNA brand ?

You can find the poll on the stoozing website. I'll not post a link

Clariman

Clariman

BillyAsh_2 · 20 August 2005 at 5:35PM

Hi Martin, Thanks for the info. I had a nightmare with Egg on my anniversary offer but that has now been sorted with no BT fee however! I have just taken out a Virgin card and was interested in your comments as with my card I received a letter from Mark Huggins (Head of Credit Card Insurance Services) and in the letter it states 'please note there is a charge of 2% of the balance you are transferring (minimum £2 maximum £35)' Are you still sure that ther is no BT fee with Virgin?

nadnad · 20 August 2005 at 5:41PM

Hi there - I just got my Virgin credit card today and on the letter is says there will be a 2% balance transfer fee same as Billyash - I'm a little annoyed because the only reason I went with Virign is because I thought there wouldn't be a charge - I transferred my balances on the application form and therefore have probably already been charged the 2%.

YorkshireBoy · 20 August 2005 at 11:36PM

nadnad wrote:

I transferred my balances on the application form and therefore have probably already been charged the 2%.

I´ve always advised posters on this forum to carry out (S)BT´s via telephone. This way you can ask them to confirm there is no fee rather than signing a form and waiting for the statement to check if you´ve been charged or not.

Having said that, 2 recent posters have quoted from their T&C´s/acceptance letter saying they WILL have to pay a BT fee. This is worrying as I´m currently trying to clear my Virgin card 5 months early and then SBT off again to add to my stooze pot (making it the second SBT in the 9 month intro period) - so I´ll be watching the Virgin threads with interest over the next few days/weeks.

Twopints · 20 August 2005 at 11:45PM

Yorkshire Boy,

I received my Virgin Card in July. My letter said the same thing about being charged 2%. I was a bit worried but followed the advice on here and stoozing.com (cheers guys). Like you, I did the BT by phone and was assured it would not be charged, IT WASN'T. I have subsequently used the Virgin card as a mule to do a second SBT and, again, did it by phone AND WASN'T CHARGED ANYTHING.

I am sure that if Virgin WERE actually charging for BT's during the 0% period we would definitely have heard about it on here or one of the other stoozing sites. It just is not happening. Just like Martin says in his article.

The letter is misleading but there have not been any charges.

YorkshireBoy · 21 August 2005 at 12:02AM

Twopints wrote:

The letter is misleading but there have not been any charges.

I agree it "was" misleading, but 2 posters have quoted from their letters that they "WILL" be charged a BT fee. Our letters said we "MAY" be charged a BT fee. It´s the "WILL" bit that´s worrying me - because MBNA use this word in their T&C`s but I thought so far Virgin, A&L, Abbey, et al had not adopted the wording. Have to admit though, that I`m a little out of touch at the moment as I´m holidaying in Tenerife and not back until next week.

Richie(UK) · 21 August 2005 at 8:49AM

Hi,

Received my Virgin card this week and had the same 'insurance' letter from Mark Huggins. There is a reference to BTs and then an asterisk - at the bottom of the letter the asterisk comment is "Please note, there's a charge of 2% of the balance you're transferring (min £2, max £35) ..."

However, the Ts&Cs in the letter containing the card itself still said "may". Needless to say, when I called to activate the card I double-checked the position. I had it confirmed that there are no fees for BTs during the introductory period.

HTH

Den · 22 August 2005 at 10:12AM

I got same letter like people above, on my T&C that I signed it also says 'may' like in Richie(UK)'s.

This is my first BT and don't want to pay any fees. My Virgin card is on my desk waiting to be activated. Please, has anyone activated their card with new instrustions regards 2% charge and got confirmed that this does not apply.
I applied for BT on my credit card during online application, and want to put rest to my current a/c, basicaly to do SBT.
Your help will be much appriciated

Reaper · 22 August 2005 at 10:41AM

Den wrote:

Please, has anyone activated their card with new instrustions regards 2% charge and got confirmed that this does not apply.

Re-read Richie's post. In particular the bit where he says:

I had it confirmed that there are no fees for BTs during the introductory period.

Balance Transfer Fees – Misinformed by customer service?

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