Beware of repayment protection policies on credit cards particularly Virgin 0%

Catwoman68_2

Just a warning to anyone who takes up the Virgin 0% on balance transfers as I did. At the time I decided to take the repayment protection policy as I was unsure about it I needed it on my balance transfer. A couple of months into having the credit card I became aware that I didn't really need the repayment policy which was costing around £50 per month. So I rang to cancel. Cancelling was difficult as I had to almost prove I was protected and Virgin implied that my policy protected them. Secondly I had to give a month's notice to cancel.

All seemed well until I noticed a month later that I was being charged interest. Having not made any purchases on my card (except the 0% balance transfer) I was worried. Upon investigation it appeared that the policy I had cancelled was classed as a purchase and as it was cheaper than my balance transfer meant that whatever payment I paid off on the card, I would always pay of the larger amount first. The interest was on the policy I cancelled and would always exist. The only way to get rid of the interest was to pay off the whole balance transfer!! I am not sure that I ever read that in the small print. Crafty or what?!!

As the interest I am paying is minimal it isn't worth me pursuing this. However, this would be different on a larger amount of money.

Beware!

poker_face

Catwoman68 wrote: »

Just a warning to anyone who takes up the Virgin 0% on balance transfers as I did. At the time I decided to take the repayment protection policy as I was unsure about it I needed it on my balance transfer . A couple of months into having the credit card I became aware that I didn't really need the repayment policy which was costing around £50 per month. So I rang to cancel. Cancelling was difficult as I had to almost prove I was protected and Virgin implied that my policy protected them. Secondly I had to give a month's notice to cancel.

All seemed well until I noticed a month later that I was being charged interest. Having not made any purchases on my card (except the 0% balance transfer) I was worried. Upon investigation it appeared that the policy I had cancelled was classed as a purchase and as it was cheaper than my balance transfer meant that whatever payment I paid off on the card, I would always pay of the larger amount first. The interest was on the policy I cancelled and would always exist. The only way to get rid of the interest was to pay off the whole balance transfer!! I am not sure that I ever read that in the small print. Crafty or what?!!

As the interest I am paying is minimal it isn't worth me pursuing this. However, this would be different on a larger amount of money.

Beware!

Hmm, time for a new card maybe...:money:

Welcome to the forum :beer:

sarahs999

How annoying. But yes, it would count as a purchase. Very tricksy of them though, to trap it behind the BT. But of course that's what these companies try to do all the time to make money out of you, hence 0% BT for 10 months and 0% on purchases for three months - meaning that your trapped purchases ratchet up the interest after three months are up....

jgriggle

Both myself and my fiancee have taken the Virgin card to take advantage of the 0% offer. All good, but we did find that when youreceive the card and ring up to activate it, they are VERY pushy in trying to get you to take out the PPI. (I just told them I had rich parents who would bail me out. Not true but the salesperson couldn't think of anything to say to that. My poor fiancee howver nearly ended up throwing the phone across the room! They just wouldn't take no for an answer. The woman on the other end asked why she didn't want it, then went on to 'what if this happens, what if that happens etc. and actually got quite stroppy! My fiancee kept having to say "I'm sorry, I'm not interested - I just want to activate my card" over and over again until she eventually got the message! Good job it was an 0800 number as the call took over 15 minutes.

POSSETTE

thanks for all this..i have just applied for virgin card...i never take out ppi and i do actually use a similar excuse..that i have rich parents who would help me if i ever get stuck like that!!! it does work...that and also saying that i have got an insurance policy protecting my income at a third of thier price with another company!!..
although i do find keeping your answer to "NO" pure and simply "NO " all the time they give up quite quick!

sarahs999

I also found that when getting one of my cards recently (it may have been virgin, but I think it was actually barclaycard) I had to endure practically 15 minutes of them trying to sell me policies, other things they had on offer and everything but the kitchen sink. I got really fed up with it as I only rang to activate my card - and the woman kept asking things like, do you mind me asking how you would pay if you lost your job? Well, yes I do mind. None of your business! Give me the card yo've already agreed to give me and stop being nosey!

clio

sarahs999
lol nice one \0/

Mutton_Geoff

Sarahs999, perhaps it was Barclaycard? I commented I had the same problem in this post but perhaps I should have adopted your technique rather than writing to them!

POSSETTE

can i ask what price they were charging for PPI on what amount?..im expecting a call from them soon regarding my application,so they can try selling it me..im looking to trsf 4800, and PPI with a company recommended by Martin wants £29 a month..im armed ready for them!not that im having it full stop..but i just want to tell them i have already got something cheaper than they offer..just want to know it IS cheaper..

YorkshireBoy

POSSETTE wrote: »

...PPI with a company recommended by Martin wants £29 a month..im armed ready for them!not that im having it full stop..but i just want to tell them i have already got something cheaper than they offer..just want to know it IS cheaper..

I think you've misunderstood what you've read. £29 sounds like the annual premium for 'card protection' (such as that provided by Sentinel and CPP), which covers you if you lose your wallet/cards/passport/etc.

PPI is generally priced as, say, 79p per £100 of statemented balance.

POSSETTE

No..i clicked on the link and it said to insure credit card payment click here,then i had to put my amount in and it gave me a price per month...but i will recheck it now..

just rechecked..yes it is CC payment protection,from payment care, it .65p in the 100 pound..so it was £31.20 a month