Virgin MBNA have removed the fixed payment option

swoods

I received a letter this morning stating that MBNA had conducted a review of my account and, to ensure I could continue to meet the minimum payment on the card, would be changing my fixed monthly payment to the minimum payment on the card statement.

It later goes on to say that "if your previous fixed amount was greater than the minimum payment, it will take you longer to pay off any outstanding balance." My payment was great than the minimum monthly payment so while I understand this bit of the letter, it does irritate me a great deal.

On calling Virgin CC, I was told that it wasn't a targetted change, they had removed the ability to accept a fixed monthly payment for all customers. Has anyone else received a letter or call from Virgin/MBNA to confirm this? I've got the 15 month 0% balance transfer card.

I questioned the agent's statement (about it not being a targetted change and rather a system-wide adjustment) and read her the relevant parts of letter I received, to which she responded "yes, that is a bit ambiguous, isn't it?". If they know it is ambiguous, how/why were they able to clear it through their legal and PR departments?!

I do have another option available, in that I can set up an additional standing order, although I'm annoyed at their insinuation that I'm not able to meet my current repayment obligations and that they're doing me a favour by cutting my monthly payment.

Oh, this has turned into a rant. Not a good first post, so apologies for that. I'm just unhappy MBNA/Virgin has angried up my blood this early on a Saturday morning!

YorkshireBoy

It's a global change and has been reported here several times recently.

As I've asked previous posters though, why on earth are you overpaying a 0% deal? Why not pay the minimum £25 and save the rest in a high interest savings account and make a little interest out of them?

johnllew

YorkshireBoy wrote: »

As I've asked previous posters though, why on earth are you overpaying a 0% deal? Why not pay the minimum £25 and save the rest in a high interest savings account and make a little interest out of them?

Because they don't really understand what they're doing? A bit frightenimg, really.

NickX

johnllew wrote: »

Because they don't really understand what they're doing? A bit frightenimg, really.

Well John, we know that YorkshireBoy is absolutely right and the best thing to do with a 0% deal is to pay the minimum and save the rest in a high interest account, but not everyone is a stoozer and some people manage their finances differently to the way you or I would. I don't think this necessarily means a lack of understanding, just a different mindset perhaps.

rodent

Mrs R pays a set amount each mth (on a 0%) as enforced savings !!!!
Had same letter !
No problem .....Just set up SO for required amt over and above "min paymt"..

Job Done

The Rodent

Scousebird_2

I have not heard this-however, my fixed payment is more than my minimum so I probably won't get one. They did call me the other day and ask if I wanted to do a BT of any other balances. I was interested until they told me that I would be paying £16 on £500 that I am going to pay off next month anyway, and barclaycard are offerring 14mo interest free with no BT fee so I politely declined. The service is good with MBNA but I never seem to see my card balance go down on it and I cut the card up last year so I'm jumping ship-not that it will make much difference lol!!

YorkshireBoy

Scousebird wrote: »

...barclaycard are offerring 14mo interest free with no BT fee

Do you have a link, or is it a special offer on an existing account?

...with MBNA but I never seem to see my card balance go down on it...

That's due to their "interest + £5" minimum payment calculation. Great for stoozers (and snowballing real debt), but bad news for those in trouble.

Scousebird_2

YorkshireBoy wrote: »

Do you have a link, or is it a special offer on an existing account?That's due to their "interest + £5" minimum payment calculation. Great for stoozers (and snowballing real debt), but bad news for those in trouble.

Aye............

I am sure this is the one I have applied for but it says in this ad 6.5% interest for life of balance PA.

I only have £600 on my card and that balance will decrease each month. It's just over half a percent interest per month on my balance so on £600 the most I will pay is the 1st month at £3.00 and then decreasing from there-plus you get some great features and extras. Try it and see if it works for you.

http://www.barclaycard.co.uk/personal-home/cards/platinum-hero/long-term-balance-transfer/index.html

johnllew

NickX wrote: »

Well John, we know that YorkshireBoy is absolutely right and the best thing to do with a 0% deal is to pay the minimum and save the rest in a high interest account, but not everyone is a stoozer and some people manage their finances differently to the way you or I would. I don't think this necessarily means a lack of understanding, just a different mindset perhaps.

But a wrong mindset, nevertheless. The whole idea of stoozing is to extract the most profit out of credit cards and to do that you really need to know what you're doing. Overpaying on a 0% deal suggests you really don't know what you're doing. If you don't know what you're doing, you can get into big trouble with credit cards.

somnerd13

johnllew wrote: »

But a wrong mindset, nevertheless. The whole idea of stoozing is to extract the most profit out of credit cards and to do that you really need to know what you're doing. Overpaying on a 0% deal suggests you really don't know what you're doing. If you don't know what you're doing, you can get into big trouble with credit cards.

Nobody has said that the OP is stoozing though, have they?

Markyt

johnllew wrote: »

Overpaying on a 0% deal suggests you really don't know what you're doing.

I'm overpaying on mine (or at least I was - ta, OP) and I know exactly what I'm doing, ta. I'm using the card in place of a car loan and paying it off over the same period I would have had a loan for, albeit without paying interest.