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  • FIRST POST
    • genericname111
    • By genericname111 6th Dec 17, 10:00 AM
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    genericname111
    Virgin credit card interest on late payment charge
    • #1
    • 6th Dec 17, 10:00 AM
    Virgin credit card interest on late payment charge 6th Dec 17 at 10:00 AM
    Hello,
    I have a quick question as I have spoken to Virgin on the phone to ask about charges on my credit card account- I was late with my payment last month, and thus I was charged
    a) late payment charge-9£, b) interest charge-2.05£ which the lady on the phone explained is an interest on the late payment charge! (I was also charged normal interest).
    I have never realised this can happen- is this a standard practice with other banks too? It seems little sketchy...
Page 1
    • zx81
    • By zx81 6th Dec 17, 10:05 AM
    • 14,386 Posts
    • 15,174 Thanks
    zx81
    • #2
    • 6th Dec 17, 10:05 AM
    • #2
    • 6th Dec 17, 10:05 AM
    Yes - it's standard practice.

    However, the £2.05 will not all relate to the late payment charge of £9.
    • bengalknights
    • By bengalknights 6th Dec 17, 10:31 AM
    • 4,176 Posts
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    bengalknights
    • #3
    • 6th Dec 17, 10:31 AM
    • #3
    • 6th Dec 17, 10:31 AM
    Yes this is standard practice as the charge is still a amount that is payable.
    • Anthorn
    • By Anthorn 6th Dec 17, 10:49 PM
    • 3,278 Posts
    • 841 Thanks
    Anthorn
    • #4
    • 6th Dec 17, 10:49 PM
    • #4
    • 6th Dec 17, 10:49 PM
    Or to put it a different way: Charges are added to the balance which is then subject to interest.

    However there is not a lot to stop you adding together the charge and the interest accrued by that charge and then complaining that the total charge is unfair. The question is whether it's worthwhile to do that for such a small amount of money.
    • Dobbibill
    • By Dobbibill 7th Dec 17, 10:09 PM
    • 2,542 Posts
    • 3,631 Thanks
    Dobbibill
    • #5
    • 7th Dec 17, 10:09 PM
    • #5
    • 7th Dec 17, 10:09 PM
    The interest will be due to the late payment making the interest free grace period on purchases invalid.

    You have been charged interest on the amount borrowed for the length of borrowing.
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