Providian credit card rip off - advise desperately needed!

fraggle-111

Hi, can anybody give me any advise on the following..

Have had my credit card with Providian for a number of years now. About four years ago i had virtually paid off the balance and then my boyfriend (at the time) had a little trouble and i offered him to use my credit card to make a cash payment as long as he paid the repayments, which he agreed. Turns out he never gave me a penny and left me in a whole heap of debt. I struggled with the repayments and then did not make any for a number of months. I then took out a loan to pay the majority, cut up the card, and asked them to set up the minimum payment i could pay to clear the account, i also asked them to cancel the payment protection as i didnt even know i was paying for that as well. The balance to be paid was £300 and i think they had reduced my credit limit from £2500 to £350. As i could see the payments going out of my bank acc, i just forgot about it. I then moved and didnt even think of telling them as to me, the account was all but closed. Not so long ago i opened a recent statement which my tenants had a pile of, and to my horror the balance has not gone down, even though i've been making payments for years.. the balance is now nearly at £1000! :eek: They have still been charging me for payment protection l, the minimum payment has not covered the interest etc and obviously this has taken me over my credit limit for which they then charge an additional cost of £12 per month..

I have called them up to complain but just get a set of numpties.. they were supposed to be investigating the payment protection, they have cancelled it now but have heard nothing about them crediting payments for the last how many years...

I have so many charges and interest on top of interest... but since a couple of years ago they amended their charges to £12 each.. so does this mean they cannot be reclaimed now as it is classed as a reasonable charge?

My question is.. CAN THEY GET AWAY WITH THIS.. AND HOW WILL I EVER BE ABLE TO PAY THIS BACK.. AS I DON'T HAVE THE CASH TO PAY THE BALANCE OFF. :-(

Can anybody help me on this?

Thanks in advance ..

SwissLe

I don't understand how this is a rip off. You borrowed money at a rate you would've been aware of. You didn't clear the balance but paid the minimum payment and you are aware that the interest would still be charged. You didn't check your statements or confirm that the PPI was cancelled.

What are they getting away with exactly?

As much as I dislike companies such as Provident, they offer a service to people that would not normally be eligable and therefore charge a premium, I cannot see what they have done wrong.

You need to reduce your balance as soon as possible. Do you know exactly how much you owe and at what rate? The only options would be to transfer this to a lower rate card, although I doubt you will meet the criteria for this as you are with Provident in the first place or look to your bank for a loan at a lower interest rate. If not just work at paying it off sooner rather than later.

fraggle-111

Well aron, in reply to you, i actually came on here for advice, not smart !!!! comments from people like you who make comments and judgements when they havnt a clue.. and for your information, i moved out of my house as the area had gone down hill and i wanted a better school and upbringing for my daughter. My only option was to rent it out out a price lower than my mortgage and rent elsewhere. I'm a single mum, i have a full time job and a part time job and i'm at Uni, so before u make comments again, maybe open that tunnel vision up!

SwissLe

fraggle-111 wrote: »

Well aron, in reply to you, i actually came on here for advice, not smart !!!! comments from people like you who make comments and judgements when they havnt a clue.. and for your information, i moved out of my house as the area had gone down hill and i wanted a better school and upbringing for my daughter. My only option was to rent it out out a price lower than my mortgage and rent elsewhere. I'm a single mum, i have a full time job and a part time job and i'm at Uni, so before u make comments again, maybe open that tunnel vision up!

Well now that's sorted, any thoughts on my questions?

_Andy_

I'm still waiting for the day when I open a thread with the words 'rip off' in the thread and find it's been used appropriately.

fraggle-111

Hi SwissLe,

When i took out the card in 2001 my credit was a bit iffy but by the time i lent this money to my ex my credit was very good. When i got into trouble i rang them and said i was experiencing cash flow problems, and after paying off the majority with a loan, i rang them and said i didnt have the card anymore and a payment agreement was made to pay the balance off which as i mentioned above was £300. I agree whole heartedly that i have been an idiot and just forgetting about it etc..

They are still charging me the full 2.207% p/m cash interest rate on the balance which is now £934.36. This is what i think is a rip off.. i paid the majority of the cash payment off, so now they are charging a cash interest rate on a balance which is made up of overlimit fees and interest...

naijapower

_Andy_ wrote: »

I'm still waiting for the day when I open a thread with the words 'rip off' in the thread and find it's been used appropriately.

I am behind you in the wait...
Hopefully we shall not wait for long....lol

SwissLe

fraggle-111 wrote: »

Hi SwissLe,

When i took out the card in 2001 my credit was a bit iffy but by the time i lent this money to my ex my credit was very good. When i got into trouble i rang them and said i was experiencing cash flow problems, and after paying off the majority with a loan, i rang them and said i didnt have the card anymore and a payment agreement was made to pay the balance off which as i mentioned above was £300. I agree whole heartedly that i have been an idiot and just forgetting about it etc..

They are still charging me the full 2.207% p/m cash interest rate on the balance which is now £934.36. This is what i think is a rip off.. i paid the majority of the cash payment off, so now they are charging a cash interest rate on a balance which is made up of overlimit fees and interest...

Even though it's made up of charges, they still are charges within the terms of your account. It's unfortunate that these little mistakes cost us sometimes but the way I see it all you can do is write a letter of complaint stating your case. I wouldn't think a company like Provident will pay much attention.

I would also look at alternative sources of credit if you are unable to pay the balance off in full. Have you checked your credit report recently? Do you think you would have a good chance of getting a balance transfer such as Virgin? If not, would your bank be willing to give a more favourable rate loan or overdraft?

naijapower

SwissLe wrote: »

Even though it's made up of charges, they still are charges within the terms of your account. It's unfortunate that these little mistakes cost us sometimes but the way I see it all you can do is write a letter of complaint stating your case. I wouldn't think a company like Provident will pay much attention.

I would also look at alternative sources of credit if you are unable to pay the balance off in full. Have you checked your credit report recently? Do you think you would have a good chance of getting a balance transfer such as Virgin? If not, would your bank be willing to give a more favourable rate loan or overdraft?

hippy
:beer:
thats the answer u have been waiting for

jipp05

You people are a disgustingly smug lot. why bother replying to her if you had nothing constructive to say? she is obviously in a state over the whole thing and doesn't need you critisising her. you should be ashamed of yourselves

dmg24

jipp05 wrote: »

You people are a disgustingly smug lot. why bother replying to her if you had nothing constructive to say? she is obviously in a state over the whole thing and doesn't need you critisising her. you should be ashamed of yourselves

If you are going to have a go at someone, it is always good to use a spell check. Constructive enough for you?