Revenge! Make free cash from credit cards/MoneySavingExpert.com Discussion

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  • jaggybunnet
    jaggybunnet Posts: 23 Forumite
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    Ha.. Just thought I'd share.. I got caught out with the SONY MBNA 0% on transfers. As this was interest free for purchases for 3 months I had spent to collect points. Even though I had paid off purchases in full after the 3 months this quickly built up the interest owing "pot". I'm just going to suck it in and take the money out of my ISA to pay it off in full ASAP. I consider myself street wise, but these guys get me all the time. I must spend more time on this site!! before I do ANYTHING else.

    or should I check Barclaycard..
  • MoneyLovesCompany
    MoneyLovesCompany Posts: 37 Forumite
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    I hope someone from the FSA is reading this.

    I received some Balance Transfer (BT) cheques from Virgin at the end of April offering me 0% until Feb 2008 with a 3% BT fee capped at £75.

    Good deal, I thought.

    The small print mentioned that the above rate was invalid if there had been recent rate changes which I took to mean 'within the last couple of weeks' since the last letter from Virgin announcing such changes was 2 months earlier (February).

    First thing I did, as an experienced stoozer, was to arrange a credit limit increase after which, I took up their offer.

    It was only when I received the next statement did I discover that they had charged me 2.50% with no capping. A massive £500+.

    Was I fuming? You bet.

    I called Virgin for an explanation and was told that they were using up "old stationery". In other words, they knew perfectly well that the rates contained within their offer did not exist at the time they sent it out.

    Misleading or what? I would very much like to bring this to the attention of the FSA but am not sure how.

    Virgin have agreed to cancel the charges providing I return the money to them within 10 working days, which I have now done. However, it was extremely inconvenient and time-consuming. If I had known what they were going to charge, I would not have used their cheques. Sure, I would have made some money over and above their fees but not enough to have justified the effort I put in.

    My advice to fellow stoozers is simple and I should have done it myself "as an experienced stoozer" at the outset: Confirm the terms of any Balance Transfers over the telephone before accepting any offers.

    Virgin ................... you should be ashamed of yourselves. You have given Richard Branson a bad name and shame on MBNA for letting them do it.
  • watcherman
    watcherman Posts: 570 Forumite
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    http://www.moneymadeclear.fsa.gov.uk/guides/making_a_complaint.html
  • wittak
    wittak Posts: 4 Newbie
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    I'm new to stoozing and whilst I am strongly considering it I am a little concerned about the net gains available.

    If I BT £1000 to the Ulster Card and transfer the money via the Egg Card to a 6% savings account, that will earn me £60 over the year?

    However, the minimum payment on the Ulster Card is 3%. That means I will be paying £30 a month for the privilege.

    Correct me if I'm wrong but doesn't that mean over the course of the year I will be down £300?

    Rob
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    Correct me if I'm wrong but doesn't that mean over the course of the year I will be down £300?
    You're wrong - you're paying back money you've borrowed - your post gives the impression you think the £1000 is yours.

    Assume you didn't have to pay anything back over the year. At the end of the year you'd have to pay back £1,000.

    But since you have paid back (roughly 12x£30) £360, you only owe £640.

    You haven't lost the money - you never had it to begin with.

    Your gain is the interest on the money you've borrowed. (Which will either be £1000 x interest rate or the [decreasing balance] x interest rate, depending on where your monthly repayments are coming from.)

    Edit: Note - the one thing you will have to deduct from your interest earned is any balance transfer fee they charge.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • wittak
    wittak Posts: 4 Newbie
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    Of course. I was forgetting that I would be decreasing the balance owed each month!

    Thanks Paul.
  • AndyCoates
    AndyCoates Posts: 1 Newbie
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    Heres a quick question, I'm sorry if this has been covered before but I couldn't find the answer i was looking for using the search function. Ive just had a quick look on the egg website and it says that there is a 3% handling fee on any balance transfer. Does this mean that if I use another 0% card to transfer £3k to my egg account making it a positive balance, when i move that money from my egg account to my high savings account will i be charged 3% for doing this? Or does this 3% handling fee just apply when you are using your egg credit (e.g transferring money from egg into your high savings interest account when you have a zero balance in your egg account?)
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