Virgin Credit Card charge

gabthoms

Hi, I payed off my Virgin card in full about a month ago as the 0% offer was running out. My online balance showed 0 so I wrote and cancelled the card. Virgin wrote back to say that this had been done and so I cancelled the direct debit with my bank. I've just had a new statement which shows that I've been charged £25 for a returned payment fee as it seems that they still tried to take my direct debit payment even though my balance was 0 and I had a letter saying that the card has been cancelled. I'll phone them on monday, as they are only monday to friday, but my question is if you think they are in the wrong and I can get my money back or did I cancel my direct debit too early?

Any help would be appreciated

grumbler

I think you made a common mistake: you assumed that 0% end date and payment date are the same. See, for example this most recent thread: Im a little bit puzzled . As a result, after paying the full balance you still owe them some interest that they tried to collect by DD. Your other mistake was in cancelling the DD so fast - there is no harm if it stays on a current account for 1-2 months. And if you cancell a DD it is always recommended to inform the other side about this. IMHO they are not in the wrong. It's a pity that you pay such high price for this lesson.

gabthoms

Hi grumbler, thanks for your reply. I see what your saying, but I didn't make that mistake. My 0% end date was 1st March. I payed off the full balance on 22nd February. My payment due date for February statement was 16th March. My new online march statement shows interest is 0.00 and my full total owed is £25 returned payment fee. Although I realize I cancelled my direct debit early and I should have informed them of the direct debit cancellation, should they have still been trying to take a £5 minimum direct debit payment on 16th March when I payed it all off on 22nd February? If I'm in the wrong then fair enough.

grumbler

Yes, I see ...:think: Now I do think they are in the wrong. If they tried to collect money you didn't owe them after the card was cancelled, I think you have serious grounds to complain and not to pay this £25.

MPH80

gabthoms wrote:

Hi grumbler, thanks for your reply. I see what your saying, but I didn't make that mistake. My 0% end date was 1st March. I payed off the full balance on 22nd February. My payment due date for February statement was 16th March. My new online march statement shows interest is 0.00 and my full total owed is £25 returned payment fee. Although I realize I cancelled my direct debit early and I should have informed them of the direct debit cancellation, should they have still been trying to take a £5 minimum direct debit payment on 16th March when I payed it all off on 22nd February? If I'm in the wrong then fair enough.

The problem comes from having a direct debit and the phrasing a company use on your statement.

Take one of my statements for example:

"The full amount, minus any payments between now and xx/MAR/2006 will be taken by direct debit on xx/APR/2006"

And yet on another:

"The minimum payment will be collected from your account on XX/APR/2006".

The phrasing is quite important. If they say they'll take other payments into account - they may cancel the DD - but otherwise - they WILL take it (they have to - unless they give you notification that your DD has changed - it's in the DD guarantee).

So that's what's happened. However, I think you can argue that they shouldn't be charging you £25.

M.

gabthoms

I did get charged the £25 for not telling Virgin that I had cancelled the direct debit and, yes, it does state in the t&c's that the direct debit will be taken regardless of any additional payments made. However, a quick phonecall and they have reversed the charge so all sorted and lesson learned for next time!

Thanks for everyone's help