Vanquis: Minimum payment question

onedaymyfriend · 17 April 2011 at 9:26AM

Hi guys!

Vanquis ask me for a minimum payment every month, which i pay on the day that the new statement is produced.

But for the last two months, it would appear that the amount that they're asking for isn't enough and they've charged me 2x £12.

The statements have shown the balance, which is just within the limit and I pay the minimum asked for. Then a week later, it shows that the balance was a lot more than shown and was infact over the cards limit, but still states that I have cleared the minimum payment required.

I'm assuming that the extra is the interest, but why don't they ask for it in the first place?? I'm just hoping that the 2x £12 charges haven't damaged my credit too much; as I've kept my nose clean for over 5 years now, since I went bankrupt.

Can anyone shed some light on this for me please?

Many thanks as always!

D#

YorkshireBoy · 17 April 2011 at 9:52AM

It sounds like these are overlimit fees, and are likely viewed more seriously than late payments by Vanquis (and anyone else searching your file if your balance is shown as being higher than your credit limit).

Are you still using the card each month? If so then stop (or pay more!)...because the next month's estimated interest figure is based on the balance as it is now and doesn't include for any further spending.

At the risk of stating the obvious you're sailing too close to the wind. Can you find a bit extra to pay and give yourself some headroom?

I think you'll find they have been reporting a '1' to the CRAs for the last 2 months (you may even have a '2' on there now) so you are undoing all your good work.

DizzleUK · 17 April 2011 at 11:10AM

Because of the high interest rates Vanquis charges, the minimum payment (which is a %age of the current balance) barely covers the monthly interest that is added on. If you have the Payment Protection and/or cash withdrawal interest on top of the main interest then the minimum payment will never cover the interest added and if you are close to your limit, you run the risk of going over that limit.

On a balance of £500 with Payment Protection cover, you would need to pay £25-26 just to cover everything added on that month yet your minimum payment would likely be £22.

With it costing you £25 a month just to tread water, the advice is to pay every penny you can afford each month (even if it's just a fiver extra) to bring that balance down. £300 a year just to maintain a balance of £500 is just throwing money away.

onedaymyfriend · 17 April 2011 at 4:16PM

YorkshireBoy wrote: »

It sounds like these are overlimit fees, and are likely viewed more seriously than late payments by Vanquis (and anyone else searching your file if your balance is shown as being higher than your credit limit).

Are you still using the card each month? If so then stop (or pay more!)...because the next month's estimated interest figure is based on the balance as it is now and doesn't include for any further spending.

At the risk of stating the obvious you're sailing too close to the wind. Can you find a bit extra to pay and give yourself some headroom?

I think you'll find they have been reporting a '1' to the CRAs for the last 2 months (you may even have a '2' on there now) so you are undoing all your good work.

I'm not using the card anymore, I have paid the min payment for the past couple of months; but the amount they are asking for doesn't seem to be enough?

Let's say my balance at the end of the month is £2485 of a £2500 limit. My online statement is produced and and I pay the min payment, a few days later it shows that the minimum payment has been paid; but just above that it shows that the amount carried forward is well over the limit and not the £2485 originally shown. I think I'm missing something here.

SnowTiger · 17 April 2011 at 4:30PM

onedaymyfriend wrote: »

I'm not using the card anymore, I have paid the min payment for the past couple of months; but the amount they are asking for doesn't seem to be enough?

Let's say my balance at the end of the month is £2485 of a £2500 limit. My online statement is produced and and I pay the min payment, a few days later it shows that the minimum payment has been paid; but just above that it shows that the amount carried forward is well over the limit and not the £2485 originally shown. I think I'm missing something here.

Something doesn't seem right here. Three things to consider:

1. £2,485 + interest would put you over the £2,500 limit.

2. You previously wrote "Vanquis ask me for a minimum payment every month, which i pay on the day that the new statement is produced." Which statement are you paying? Are you paying off the minimum balance on the previous month's statement on the day a new one is produced?

3. Others have highlighted a glitch in Vanquis' billing process which has led to them being incorrectly charged interest when they make a purchase on the day their statement is produced. Perhaps paying on the day a statement is produced is triggering a similar problem?

onedaymyfriend · 17 April 2011 at 4:39PM

SnowTiger wrote: »

Something doesn't seem right here. Three things to consider:

1. £2,485 + interest would put you over the £2,500 limit.

2. You previously wrote "Vanquis ask me for a minimum payment every month, which i pay on the day that the new statement is produced." Which statement are you paying? Are you paying off the minimum balance on the previous month's statement on the day a new one is produced?

3. Others have highlighted a glitch in Vanquis' billing process which has led to them being incorrectly charged interest when they make a purchase on the day their statement is produced. Perhaps paying on the day a statement is produced is triggering a similar problem?

Thanks for your help.

1. That would totally make sense.

2. I'm paying the min payment on the new statement, on the morning it is produced.

Vanquis: Minimum payment question

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