Virgin Money (MBNA) Potential Problem

ccozens

A month ago I transferred a balance of £10,000 to this credit card with 0% Fee and a 2.98% charge.

I cancelled the direct debit for the full clearing of the balance at the end of each month (I did this on the 15th July), and setup a standing order of £500.00 per month to be more than the payment required monthly, and begin hitting into the balance.

Well checking my account today, they applied on the 19th July for the full balance and on the 21st it was rejected...Charge from the Bank and MBNA, they then applied for the minimum balance...Charge from the Bank and MBNA.

Now as a result after logging onto MBNA website it appears the 0% rate has gone off the card, the interest charges are being applied and in addition 2 late payment charges made.

The general customer services have agreed to refund the £24.00 in 2 late payment charges, but said i must call the customer loyalty department tomorrow.

Bit worried about what they will say, but I believe I have done everything correctly. Any thoughts on what should be the going in position if it should get nasty? Has anyone else had issues with cancelling Direct Debits and them still applying for them?

In addition what are the chances of them refunding the charges made by my bank, for them applying for direct debits I had cancelled.

The best scenario is reinstating the 0% rate, and the removal of any interest charges.

Appreciate any help.

jamalfatty

ccozens wrote: »

Has anyone else had issues with cancelling Direct Debits and them still applying for them?

In addition what are the chances of them refunding the charges made by my bank, for them applying for direct debits I had cancelled.

The best scenario is reinstating the 0% rate, and the removal of any interest charges.

Appreciate any help.

Assuming you cancelled DD with your bank and didnt inform MBNA? If thats the case, how were they to know you had cancelled it?!

Think you'll have nil chance of getting your bank charges refunded, they will probably reinstate your 0% though if its a new account and now up to date with payments

shaf00uk

ccozens,

You should never cancel a direct debit on a credit card. You have left yourself exposed by doing that. What you should have done was CHANGE the direct debit to pay the minimum balance off each month. Then make additional overpayments as when you had the funds to do this.

Speak to the bank saying that you cancelling the DD in error. Most banks return you all the charges if is the first time in 12 month period. But you must ring them to make sure.

Re your interest charges on the card - I don't know. See what loyalty dept offer you. You may end up paying the late payment charge and get your 0% period reinstated. Good luck.

bankloather

I too transferred £10,000 to a Virgin Money 0% card and, as advised on this site, I set up a direct debit for as much as I could afford - £150 per month. In November, they wrote advising me that they were changing this to the minimum payment. I rang them and asked them not to, but they told me that the only way I could continue paying that amount was to set up a standing order, which I did. The next bill showed a missed payment charge of £12 and interest of £104. When I rang to query this I was told that a missed payment means I lose the 0% deal. I asked them if they would reinstate it, and they did. I rang the bank to find out why a standing order arranged on the 10th of November for the 6th of December hadn't arrived until the 10th and whilst I was listening to the lift music I realised it was down to the old three day clearance scam! The 6th December was a Saturday: electronic payments cannot be made on weekends and when they are made, they take 3 days...
NEVER USE A STANDING ORDER TO PAY YOUR CREDIT CARD!!!
When I rang to re-instate the 0% deal, I was told that I should have changed the DD to pay the minimum amount and then top up each month. This means adjusting the standing order each month to achieve a consistent level of repayment. I wanted a hassle-free consistent level of repayment - which is why direct debit is best.
I have read the thread, and it looks as though I can't get the interest or the charge refunded. Will I incur a black mark on my credit rating too? Do I have any recourse? I'm out of pocket £116 because I did as advised.