New credit card problems.. groan!

UncleSAM_2

I recently used MSE to find the best card for 0% deals for balance transfers. One offered 15 months at 0% so I went for that and got accepted as I have a good credit score. I paid about £250 to transfer around £10k to the card.

My first statement arrived and unfortunately I didn't read it properly and assumed my direct debit would take care of it. Silly me. I didn't even have a DD set up! So the second statement arrives, theres a £12 late payment fee (fair enough) and £150 interest on there and the 0% deal is GONE!

I took a few days to calm down and decided I would pay the minimum payment from the first statement plus the £12 late payment fee and write to them disputing the status of the account.

I have a letter drafted stating I do not intend making further payments until the issue is resolved to my satisfaction. I have also stated I will contact the Ombudsman if this is not the case.

They did not attempt to contact me at any point.

Where do I stand? I see in the small print it seems they are within there rights to withdraw promotional rights if I break the contract. This just seems exceptionally harsh for such a simple mistake! I have played the credit card game a lot over the years, transferring balances round a lot. I have actually made mistakes like this before but never been punished so ruthlessly!!

Am I allowed to name the firm? The brand has a squeeky clean "fair" image but the credit card is provided by another bank.

never-in-doubt

smolloy wrote: »

I recently used MSE to find the best card for 0% deals for balance transfers. One offered 15 months at 0% so I went for that and got accepted as I have a good credit score. I paid about £250 to transfer around £10k to the card.

My first statement arrived and unfortunately I didn't read it properly and assumed my direct debit would take care of it. Silly me. I didn't even have a DD set up! So the second statement arrives, theres a £12 late payment fee (fair enough) and £150 interest on there and the 0% deal is GONE!

I took a few days to calm down and decided I would pay the minimum payment from the first statement plus the £12 late payment fee and write to them disputing the status of the account.

I have a letter drafted stating I do not intend making further payments until the issue is resolved to my satisfaction. I have also stated I will contact the Ombudsman if this is not the case.

They did not attempt to contact me at any point.

Where do I stand? I see in the small print it seems they are within there rights to withdraw promotional rights if I break the contract. This just seems exceptionally harsh for such a simple mistake! I have played the credit card game a lot over the years, transferring balances round a lot. I have actually made mistakes like this before but never been punished so ruthlessly!!

Am I allowed to name the firm? The brand has a squeeky clean "fair" image but the credit card is provided by another bank.

Is it Virgin, offered by MBNA by any chance? Yes, its fine to name and shame....

Personally, i'd complain saying "I rung on X date and sorted DD out, find it on your systems". Its then your word vs theirs and they will back down if they cannot disprove anything. Failing that dont pay them anything and just cancel the account, leaving the interest owing and write in disputing it retrospectively.

withnell

I think everyone knows its Virgin through MBNA!

Maybe give them a ring and see if they'll continue the 0% - I somehow doubt they will as you've waited until after your second statement to ask

---lee---

Hi smolloy - welcome to MSE.

I hope this does not sound harsh - I don't mean it too, I'm just being factual. Your are not the first and certainly won't be the last to be caught out with this. In fact, I’m sure I’ve fallen foul of this with Virgin myself some time ago.

It's pointless involving the Ombudsman as:

1. You broke the terms (by your own admission).
2. You need to exhaust the internal complaints procedure before involving the Ombudsman.
3. Not making further payments will end up damaging your credit history due to 1.

Your best bet is to ring them with a good excuse, be apologetic and hope that they will reinstate the 0% deal but they are under no obligation to do so, so be as nice as possible and hope for the best! Good luck.

never-in-doubt

---lee--- wrote: »

It's pointless involving the Ombudsman as:

Your best bet is to ring them with a good excuse, be apologetic and hope that they will reinstate the 0% deal but they are under no obligation to do so, so be as nice as possible and hope for the best! Good luck.

I don't agree. With a £10k balance the OP does hold the Ace card here - most banks will match the deal (citi will) especially if he is not a high risk....

At the end of the day the card issuer should have (and legally has to) notify you at least 15 days before any charge is applied - did the OP get this letter? If not then the whole deal can be written off as void as both parties broke the contract. Unfortunately the lender has broken the consumer credit act - the OP hasn't.

I'd blag it saying I rung up and gave DD details, if they dont sort it out tell them to shove the account! Move it to a more appropriate lender....

just my opinion.... :rotfl:

MABLE

smolloy wrote: »

I recently used MSE to find the best card for 0% deals for balance transfers. One offered 15 months at 0% so I went for that and got accepted as I have a good credit score. I paid about £250 to transfer around £10k to the card.

My first statement arrived and unfortunately I didn't read it properly and assumed my direct debit would take care of it. Silly me. I didn't even have a DD set up! So the second statement arrives, theres a £12 late payment fee (fair enough) and £150 interest on there and the 0% deal is GONE!

I took a few days to calm down and decided I would pay the minimum payment from the first statement plus the £12 late payment fee and write to them disputing the status of the account.

I have a letter drafted stating I do not intend making further payments until the issue is resolved to my satisfaction. I have also stated I will contact the Ombudsman if this is not the case.

They did not attempt to contact me at any point.

Where do I stand? I see in the small print it seems they are within there rights to withdraw promotional rights if I break the contract. This just seems exceptionally harsh for such a simple mistake! I have played the credit card game a lot over the years, transferring balances round a lot. I have actually made mistakes like this before but never been punished so ruthlessly!!

Am I allowed to name the firm? The brand has a squeeky clean "fair" image but the credit card is provided by another bank.

As you know it was stupidity that caused this situation. The worst thing you can do is withhold payments. Imagine how that will look on your credit report. Work with the company not against them. You are totally in the wrong and you do not want to upset them anymore.

UncleSAM_2

never-in-doubt wrote: »

I don't agree. With a £10k balance the OP does hold the Ace card here - most banks will match the deal (citi will) especially if he is not a high risk....

At the end of the day the card issuer should have (and legally has to) notify you at least 15 days before any charge is applied - did the OP get this letter? If not then the whole deal can be written off as void as both parties broke the contract. Unfortunately the lender has broken the consumer credit act - the OP hasn't.

I'd blag it saying I rung up and gave DD details, if they dont sort it out tell them to shove the account! Move it to a more appropriate lender....

just my opinion.... :rotfl:

I didn't receive any correspondence about late payment fees. Is this true about the Consumer Credit Act, what do others think? I'll certainly be co-operative but if they won't be reasonable and start saying I broke the contract, this really could be the trump card....

never-in-doubt

smolloy wrote: »

I didn't receive any correspondence about late payment fees. Is this true about the Consumer Credit Act, what do others think? I'll certainly be co-operative but if they won't be reasonable and start saying I broke the contract, this really could be the trump card....

Of course they have to notify you of any fees, all banking institutions do! But that's not what I mean, i'd be looking to argue the fact you did ring and set-up the DD (just lie, they'll never know and it is impossible to disprove you - it will cost them too much to pull the "tape" and locate it, especially as there will be no notes added to your account)...

Last resort is taking the "legal" route.

gt94sss2

smolloy wrote: »

I didn't receive any correspondence about late payment fees. Is this true about the Consumer Credit Act, what do others think?

The law and the T&C of the card are both on the lenders side in this case - not yours.

As such, I would ignore never-in-doubt's advice and state that it was a mistake and ask them to reinstate the deal - something they have done in lots of cases..

They notified you of the fees they charge for missed payments etc when you opened the account and even if you called them to set up a direct debit.. all credit card companies warn you to keep paying the way you were until you see the 'payment will be collected by direct debit' notification on a subsequent statement..

My advice is to do it by telephone though.. so you know ASAP and can make alternative arrangements if they won't reinstate the deal..

Regards
Sunil

never-in-doubt

gt94sss2 wrote: »

As such, I would ignore never-in-doubt's advice and state that it was a mistake and ask them to reinstate the deal - something they have done in lots of cases..

Do not listen to this advice - they will never back down. See here for proof: Read Me Assuming it is Virgin then it's the same parent company cos Abbey use MBNA also. So must be a silly MBNA thing going on here.

There have been less than 1% of cases whereby MBNA reapply original rate after a missed payment, google will confirm this - they do not make a habit of it, contrary to what you believe!

gt94sss2 wrote: »

They notified you of the fees they charge for missed payments etc when you opened the account and even if you called them to set up a direct debit.. all credit card companies warn you to keep paying the way you were until you see the 'payment will be collected by direct debit' notification on a subsequent statement..

True but on a new account, this could be argued.

gt94sss2 wrote: »

My advice is to do it by telephone though.. so you know ASAP and can make alternative arrangements if they won't reinstate the deal..

Exactly, ring and blag it. dont get stroppy, just say to them that you did set up the DD and tell them its their fault. If they do not rectify it then you'll cancel and take business elsewhere and retrospectively backdate your cancellation to the day the card arrived - perfectly legal in the Uk to do this. i.e. pay back the original amount and walk away with amount disputed.

Different people have different opinions but trust me, being honest doesn't always pay - as you'll find out if you listen to this nonsense.

Look here: http://blogs.thisismoney.co.uk/this_is_money_blog/2008/03/abbey-credit-ca.html

(quote from this article: Previously most credit card companies would refund charges on a first offence. It's now less likely. I tried this with Abbey - it now has a strict policy of one strike and you're out.)

gt94sss2

never-in-doubt wrote: »

Do not listen to this advice - they will never back down. See here for proof: Read Me Assuming it is Virgin then it's the same parent company cos Abbey use MBNA also. So must be a silly MBNA thing going on here.

There have been less than 1% of cases whereby MBNA reapply original rate after a missed payment, google will confirm this - they do not make a habit of it, contrary to what you believe!

They reinstated it in my own case and in lots of other people here on these boards..

Regards
Sunil