Virgin CC - late payment and 0% withdrawn

katie07 · 23 October 2009 at 2:00PM

Hi everyone,

This is my 2nd time attempting to post this so hopefully it works this time! :-)

A couple of months ago I applied for a Virgin CC for the 0% BT offer, with the idea that I would transfer all (or most!) of my existing debts and therefore find it easier and quicker to pay it off. Virgin gave me a limit of £3100 and allowed me to transfer around £2900 (I think).

Last month (September) I called to make my payment by card. I found it IMPOSSIBLE to get through to an actual person so couldn't ask if it would credit to my account in time, and so I made the payment to the automated system and hoped for the best. I made the payment on the Friday and I believe it was due on Monday/Tuesday.

I then got October's statement through the post, and I have been charged £12 late payment fee AND around £41 in interest. I was immediately on the phone to Virgin and got through to a rather condescending lad who told me that as my payment was late they had withdrawn my promotional offer. I kept insisting that I had made the payment in time so it shouldn't have been withdrawn, to which he said that I need to allow 2 working days for payment to clear and that this is clearly stated on my statement. He eventually agreed to reinstate my 0% rate, but would not agree to refund the interest I was charged.

Although this meant I had paid nearly £55 for a late payment, I was happy to accept this. However, since then I have realised that a) I can't see anywhere on my statement that says I need to allow 2 working days for a card payment over the phone to clear (I can see where it states 4 days at bank) and, more importantly, b) will they continue to charge interest on the interest I have already been charged?! I currently have a balance in the thousands and if this interest is stuck behind the BT, it completely negates the purpose of transferring to a 0% deal as my balance is still going to be increasing faster than I can pay it off!

Does anyone have any advice?? I think I should call Virgin again and argue my point, and try and get them to at least freeze the interest at 0% for that interest already charged. Anyone know if this will work? Money is ridiculously tight at the moment (my partner is self-employed and struggling to find work) and I could really do without this extra money-stress!

Sorry for rambling, any help would be greatly appreciated!

Thanks

Katie

YorkshireBoy · 23 October 2009 at 2:15PM

Paying by debit card over the phone isn't a payment option on the back of my Virgin Money and Virgin Altantic statements, so that's why you can't find a 'time to allow' message.

You can pay by debit card online in your Virgin secure area where you will see the timescales clearly detailed.

£2,900 demands a minimum payment of only £29 per month. Why on earth didn't you set up a direct debit for such a small amount, and pay any extra by other means?

Best option for you now, as is the case with the 100s of people who post the same question as you have done on here each year, is to call MBNA customer loyalty on 0800 783 1116 during office hours and plead (NOT argue) your case. Offering to set up a minimum payment DD there and then often swings things for customers.

Good luck.

cooltt · 23 October 2009 at 5:52PM

It's very sad to see these types of posts over and over. If people are clever enough to seek out good balance transfer deals surley that intelligence would extend to making sure you don't get stung by setting up a direct debit?? It really is the basics of good money management. It's not as if the CC issuer tries to con you, they offer to set up the DD at time of application!!

CLAPTON · 23 October 2009 at 6:27PM

if you're charged interest at say 30% on £55 its only going to cost you £17.5 over a year so not really getting that excited about.

kindofaverage · 23 October 2009 at 7:52PM

hi all - paying the minimum by direct debit to ensure no late charges? I have done this b4 but was told by nationwide because the due date was always changing it was difficult to set the direct debit on the same day each month??? any advice please??

YorkshireBoy · 23 October 2009 at 7:56PM

kindofaverage wrote: »

hi all - paying the minimum by direct debit to ensure no late charges? I have done this b4 but was told by nationwide because the due date was always changing it was difficult to set the direct debit on the same day each month??? any advice please??

You either misunderstood (the difference between DD and SO perhaps?) or they were talking nonsense.

Eydon · 23 October 2009 at 8:00PM

kindofaverage wrote: »

hi all - paying the minimum by direct debit to ensure no late charges? I have done this b4 but was told by nationwide because the due date was always changing it was difficult to set the direct debit on the same day each month??? any advice please??

I think you may be confusing direct debits and standing orders.

A direct debit is set up by the company you are paying, and it is their responsibility to request the agreed (often variable) amount at the correct time. Any errors are covered by the direct debit guarantee which means your bank will refund you.

A standing order is set up by you for a fixed amount on a set date each month. It is your responsibility to ensure that the payment reaches it's destination in time.

kriss_boy · 23 October 2009 at 9:19PM

Katie07 just thank your lucky stars they agreed to reinstate the 0% as they could have so easily said tough tottys!!!

Whenever I get a new credit card I set up a DD and also check online to see its worked. (However Tesco messed mine up twice recently but thats another story!!)

bengal-stripe · 23 October 2009 at 9:24PM

kindofaverage wrote: »

....was told by nationwide because the due date was always changing it was difficult to set the direct debit on the same day each month??? any advice please??

Eydon wrote: »

I think you may be confusing direct debits and standing orders.

A direct debit is set up by the company you are paying, and it is their responsibility to request the agreed (often variable) amount at the correct time. Any errors are covered by the direct debit guarantee which means your bank will refund you.

A standing order is set up by you for a fixed amount on a set date each month. It is your responsibility to ensure that the payment reaches it's destination in time.

Direct Debits might fluctuate slightly, the day they are taken out: one month it might be the 5th, next month it might be the 7th. You will be advised at least two weeks before of the date due: "will be taken from your nominated account on or after November 6th".

Just have the money in place!

katie07 · 24 October 2009 at 12:55AM

Thanks for the helpful posts, and to the others that took the time to respond.

Re setting up a direct debit - I wasn't given this option at the time of application, otherwise I would've gone ahead and set it up. All my other credit cards (and other bills for that matter!) are on direct debits so I know the benefits of this. I set up a direct debit when I last called them but I really don't remember them asking for my details with regards to a DD when I originally applied - there's no way I wouldn't have agreed to that?!

Yorkshire boy - no, there isn't a message on the statement but the bloke on the phone specifically said to me that there is a clear note on the statement advising me it takes 2 working days for a payment to clear. Fine. But there's not. He shouldn't state something that's not true, that's basic customer service. Especially as he was being so patronising about it!

As for checking the online secure area etc - at the time I applied for the card I didn't have internet at home (recently moved) so I wasn't able to see the time limits on there for making payments etc.

Clapton - good point. Thanks. Maybe I'll just leave it then as it's such a hassle trying to get through to an actual person at Virgin. Then again, the extra £17.50 a year could come in handy....! :-)

Thanks again everyone

YorkshireBoy · 24 October 2009 at 1:21AM

katie07 wrote: »

Maybe I'll just leave it then as it's such a hassle trying to get through to an actual person at Virgin.

No, don't leave it! You've nothing to lose, and £17.50 to gain.

I ring the number I gave earlier at least once or twice a month (chasing 0% offers), most recently only yesterday, and never have to wait for long after I enter my card details and DOB into the automated system.

Virgin CC - late payment and 0% withdrawn

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