HELP - Virgin Credit card lifetime balance percentage change

Jalapino

I took out a Virgin card a while ago with a low % lifetime of the balance on transfers. Yesterday I received a letter that they are changing this from the comfortable 4.9% to a whopping 34.5% effective in August. Is this legal, in my mind it is flying in the face of the original agreement?

The letter contained a couple of paragraphs saying that if i contact them i can keep my current terms if a agree to stop using the card, keep making minimum payments and once its paid off give the card up.

My activity on the card itself has been constant minimum payments while I've been clearing off more expensive debt. So the balance has only been very slowly reduced over the year or so I've had this card.

I would very much appreciate any advice you can give me, thank you in advance.

YorkshireBoy

When people post questions such as yours it usually transpires that they haven't read the letter properly, and the higher rate applies only to new purchases placed on the card (which should be an absolute no-no with a LOB deal such as yours).

Perhaps thats the case here as well?

NickX

To be honest, YorkshireBoy is spot on, you shouldn't have made any more purchases after completing the LOB transfer. Then that balance would be guaranteed to stay at 4.9% for ever.

Best bet is to get a separate card for purchases. Tesco currently offer an excellent 12 months at 0% on purchases.

As you have already fallen into the trap of spending on the card, I would advise you take the option of closing the account and paying off at the existing rates. Then get a fresh card for fresh purchases. This would definitely save you money in paying less interest.

Good Luck.

_Andy_

Jalapino wrote: »

I took out a Virgin card a while ago with a low % lifetime of the balance on transfers. Yesterday I received a letter that they are changing this from the comfortable 4.9% to a whopping 34.5% effective in August. Is this legal, in my mind it is flying in the face of the original agreement?

1) This has been done to death several times, if you'd used the search facility you would have found this.

2) Yes it is legal.

3) In what way does it 'fly in the face' of the original agreement? You signed up to a variable credit agreement and the lender has varied the rate.

aj2703

Gotta admit though a 30% rise is a very steep increase even if increases are in the T&C's.

jpwjpw

_Andy_ wrote: »

1) This has been done to death several times, if you'd used the search facility you would have found this.

2) Yes it is legal.

3) In what way does it 'fly in the face' of the original agreement? You signed up to a variable credit agreement and the lender has varied the rate.

How is it legal? If this is indeed a lifetime of balance transfer, then the rate is not variable, but fixed for life. I don't reckon this is right at all....

I have a feeling that the purchase rate is going up to 34.9% and not the balance transfer rate. I'd definitely check though

Maelstrom_2

Was the 4.9% a promotional rate?

I would suggest that the 34.9% will apply to any new balance transfers that you do, not the existing one you're paying off.

NB: Jalapino didn't say he had made any purchases people....

Nicole_Wa

the balance has only been very slowly reduced over the year or so I've had this card.
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