Unfair Treatment by Ulster Bank in 0% offer

DocWatson

I should like to ask for anyones advice over a matter arising from a 0% credit card deal with the Ulster Bank earlier this year. I feel that I have a strong case against them for very poor treatment and want to know what I can do to report this to the FSA or some other body that could censure them.

I opened a credit card with Ulster bank at the end of March this year taking advantage (or so I thought) of their offer of 0% interest on balance transfers. Due to a delay in setting up a direct debit in order to pay the required minimum payment each month I missed the first payment which was made up the following month when the direct debit began working. For this I was charged £12 in late payment charges. I telephoned them about this, explaining the circumstances and the person I spoke to agreed to refund this. I thought no more of this and until last week did not look too closely at the statements I received each month as I was under the impression that no interest was being taken until last week.



On close inspection I noticed that interest was being taken at an annual rate of approx.18.25%. On calling Ulster bank call centre I was told that this was in the terms and conditions and that nothing could be done. I asked to speak to the supervisor and got the same message (terms and conditions). I told her that this condition should have been mentioned to me either while speaking to the person agreeing to return the late payment charge or by letter.



There was no attempt to speak to me about what was reasonable. If they thought it was reasonable to return the late payment charge but to continue with this unreasonable condition or even mention it, I consider this tantamount to trickery. They have charged me £126 that if I knew about it would have made other arrangements. The agreement I made with them was to do with 0% interest and they have taken advantage of the obscurity of their terms and conditions.

YorkshireBoy

The only thing you could try is to make a formal complaint, perhaps in writing, because your T&C's (condition 2) clearly state...

If you break any terms of this agreement, we may reduce or end any period that applies to any special offer we have made under the agreement

It sounds like you have been accruing interest for several months now before noticing/doing something about it. For that reason, and condition 2 being 'pre-notified', I think an escalation to the FOS would be a waste of time.

Best to move on and resolve to keep a closer eye on things in future?

Milarky

The (non)collection of the first month's payment under a direct debit is a well-known issue. Unfortunately it is the customer's responsibilty to read the statement when it arrives and only if it is stated on there that the next minmum payment will be collected, will it be collected.

And, like YB, I'm surprised that you did not notice interest charged straightaway if it was printed on any statement. The earlier you can arrange to bail out and transfer your balance away from a card charging standard rates the better for you..

johnllew

DocWatson wrote: »

I thought no more of this and until last week did not look too closely at the statements I received each month as I was under the impression that no interest was being taken until last week.

You mean you didn't look at them at all. That's the whole point of statements: they state what's happening on your account. To ignore them is foolhardy.

On close inspection I noticed that interest was being taken at an annual rate of approx.18.25%.

Close inspection? You mean when you actually read the statements.

If they thought it was reasonable to return the late payment charge but to continue with this unreasonable condition or even mention it, I consider this tantamount to trickery.

They did mention it: they sent you statements each month telling you they were charging interest.

The agreement I made with them was to do with 0% interest and they have taken advantage of the obscurity of their terms and conditions.

You signed up to the (whole of the) T&Cs; you can't cherrypick which parts you like and which you don't.

I don't think you have a leg to stand on. Just move on and learn from your experience.

CannyJock

Would add that they're not all bad. I had a delay in the setup of my Ulster Gold card, phoned their CS department and queried the delay saying I was disappointed means I wouldn't get my full 6 months at 0%. Few minutes later they'd agreed to extend if by another month so I'd get just over 6 months. Just cleared it this month and it's all gone according to plan.

For 0% fee for 6 months 0% they're still up there in the fee-free card. Have to agree with the other posters to chalk it up to experience.

Before cancelling your card in the heat of the moment and vowing never to have anything ever to do with them again, I'd pay if off in full first (remember to over-pay to cover residual interest). Then write to complain that the 0% hadn't been reinstated as you'd been advised and request a refund of the total amount of interest. You're relying on a bit of good will here - if you have the name of the CS person you spoke to with the date and time of the call then you might improve your chances.

Either way, clear the card, wait till your outside the initial promotional period then phone them and ask for a repeat deal. Full guide on requesting repeat deals on the stoozing site at www.stoozing.com. If you can get a decent repeat offer you can make some money back from them

DocWatson

Thank you all for your admonitions. I will read my statements more closely from now on. The reason I did not do so originally was that I thought I had an agreement with Ulster Bank that I did not have to pay interest so why should I be looking for the interest on the statement. I am not sure that reading the terms and conditions that closely would have alerted me to this eventuality. I thought that it was established that not all disputes could be won by the bank by referring to terms and conditions.

DocWatson

Very impressed by Virgin customer service. They set up the card in 3 days enabling me to reach deadline on payment transfer and set up DD at the same time as doing balance transfer. Transfer charge slightly more expensive than Barclaycard 2.98% to 2.5% but Barclay card haven't even sent me the paperwork yet wheras Virgin do it all over the phone. They informed me about the critical T&C without me even mentioning it. Goodbye Ulster Bank.