Virgin - Changes to interest rate

M4RKM

Woah!

I'm glad I've closed my Virgin account down, but I did get a letter that missed the cut off.

Anyway, I'm suprised that they'd upped the interest rate from 15.9%, up to 23.9% APR.

That, IMO, is a HUGE increase, from a card, which had never missed a payment, and is now, fully paid off.

So, from what i'm thinking, is that because I paid my card off, they realised they weren't going to make money out of me, so upped my interest rate.

There can't be any other reason for it, and no other card company recently has upped my rate to anything over 15.9%

Mad!

Anyone else got a letter recently?

YorkshireBoy

markymoo wrote: »

Anyone else got a letter recently?

There doesn't seem to be a week goes by without someone reporting an APR increase from MBNA. And many of them are far greater than yours...34.9% is not uncommon.

Usually, in cases such as yours, had you kept the card open with a zero balance a quick call to retentions (on 0800 783 1116) threatening to close the account would get the old rate reinstated.

Sportbilly_2

I got one myself today as well. Purchases up to 26.9%, balance transfers to 28.9%, money transfers and cheques to 30.9% and cash withdrawals up to 32.9% when my current interest free period ends. I can opt out of these rates, but the card then becomes unusable. I think I'll pay it off with my free A&L overdraft and let them cancel the card.

M4RKM

It's shocking that they're offering 16.6% typical APR for new customers, but are clobbering existing customers with this kind of rate!!

When I had my card open, I was bombarded with balance transfer deals, purchase deals, etc etc, and only once did they try increase my rate, but I called up for them to reduce it back down..

This is where the government needs to help people, the interest rate is low enough, so surely they could/should do something to cap CC rates.

23.9% is expensive, and 26.9% is even worse. this is going back to the olden days of credit cards!

Sportbilly_2

It is pretty sharp. I had the same sort of offers, plus they eventually increased my limit to £8700. Fortunately, I've never gone anywhere near that- and actually called them up a few weeks ago to reduce it to £5000- but it almost seems like they want you to spend big on it and rake the interest in once the deals finish.

PNPSUKNET

not sticking up for them but maybe due to so many people claiming charges from them, next they will add annual charges back on.

CannyJock

PNPSUKNET wrote: »

not sticking up for them but maybe due to so many people claiming charges from them, next they will add annual charges back on.

They won't need to make annual charges or dormancy charges, they make enough money from people not setting up direct debits, losing their 0% promotions and not clearing the balance before their 0% period runs out

oscar52

YorkshireBoy wrote: »

There doesn't seem to be a week goes by without someone reporting an APR increase from MBNA. And many of them are far greater than yours...34.9% is not uncommon.

Usually, in cases such as yours, had you kept the card open with a zero balance a quick call to retentions (on 0800 783 1116) threatening to close the account would get the old rate reinstated.

Not with this new (ish) Government idea to close your account and keep the old rate thingy (technical word) that came iut in January this year. You can either take the interest increase, or close the account and pay it off normally.

YorkshireBoy

oscar52 wrote: »

You can either take the interest increase, or close the account and pay it off normally.

But I'm talking about an account with a zero balance (and so is the OP). In such a case there is no balance to pay off "normally". Are you saying they now still won't revisit the APR to retain a customer?

oscar52

YorkshireBoy wrote: »

But I'm talking about an account with a zero balance (and so is the OP). In such a case there is no balance to pay off "normally". Are you saying they now still won't revisit the APR to retain a customer?

Thats about the size of it. Have seen these letters go to people with £50 balances.

staffie1

markymoo wrote: »

this is going back to the olden days of credit cards!

Let's hope so. It might make people think twice in future before running up debts they can't service and then being forced into bankruptcy!

What we need more of is people managing their finances properly. Used to be called home economics or something when I was at school.