Help with interest on credit card

squirrel68

I have just received my Virgin credit card statement for which I am on % interest until next year. However last month I had a late payment (one day late) and they have charged me £160 interest and it looks like they are going to charge me interest next month too. Is this right and is it because I defaulted with a late payment? Can you advise what I should do I have £10,000 on the card. Please help.

td_007

To take advantage of the 0% rate you need to make at least the minimum payment by the payment due date. If you do not or are late then you will not only be hit with late fees but will also lose the 0% rate and be hit with interest.

This has happened to others before but many have had luck in talking to Virgin and have the fees revoked and the 0% rate reinstated. In the first instance, I would suggest calling them up to see if this can done given that you were just a day late etc. etc.- appeal to their goodwill. If you get a reply in negative try again and you might get through to someone some sympathetic.

TrickyDicky

I suggest in future setting up a direct debit for the minimum payment each month, then you will never have a late payment.

Moggles_2

Is it because I defaulted with a late payment?

Yes.

From feedback here, Virgin will normally reinstate your special rate, provided that it's a "first offence" and you ask nicely.

If you ring Virgin Card Services on 01244 673700, you'll avoid the perishing 0870 numbers

Might be an idea to set up a direct debit to pay the minimum amount. That way, it's Virgin responsibility, not yours, to make sure the monthly repayments get there on time.

time2fight

I have just come out of my interest free period with virgin and have already had a letter saying my interest rate is going up from 16.9 to 24.9%. They say it is 'due to a change in your circumstances or the way we look at your risk factor'!.

What a load of rubbish. I have never missed any payment off any of my cards, (I have 5) My credit report and score are both excellent as well. I spoke to one of their 'interest rate managers' but they could do no more than tell me what was on the generic letter.

I put it to her that the reason they have increased it could be because I always have an outstanding balance on my cards and they thought they would up the rate to try and squeeze extra money out of me. She replied by saying I have the option to 'opt out' but this would, in effect be closing the account so why are they doing this to loyal customers who have always paid on time. This has also just happened with Barclaycard whom I have been with for over 20 years. That rate has now gone to 22.9 from 12.9%.

Are all of the top bosses trying to make sure their pensions are covered by screwing us for every last drop they can before we pay off or shift the balance elsewhere?

YorkshireBoy

time2fight wrote: »

They say it is 'due to a change in your circumstances or the way we look at your risk factor'!.

What a load of rubbish.

How can you argue against that. We've had a massive credit crunch in the last 18 months or so...coincidentally the time you've had your 0% promotion.

Times are different now.

I have never miss any payment off any of my cards, (I have 5)

That may be scaring them a little, with their revised risk profiling post credit crunch.

My credit report and score are both excellent as well.

Credit scores are worthless and meaningless...as you now know. However, I'm interested in your statement that you have an "excellent credit report". In what way do you deem it "excellent"?

She replied by saying I have the option to 'opt out'...

I assume you'll be taking them up on this?

...but this would, in effect be closing the account so why are they doing this to loyal customers who have always paid on time.

The way they assess risk has changed.

This has also just happened with Barclaycard whom I have been with for over 20 years. That rate has now gone to 22.9 from 12.9%.

My thoughts are that they can't both be wrong? I suppose if one of your other cards does the same then that would be conclusive proof that you're not the "excellent" risk you thought you were?

Are all of the top bosses trying to make sure their pensions are covered by screwing us for every last drop they can before we pay off or shift the balance elsewhere?

Is that a serious question?

td_007

time2fight wrote: »

I have just come out of my interest free period with virgin and have already had a letter saying my interest rate is going up from 16.9 to 24.9%. They say it is 'due to a change in your circumstances or the way we look at your risk factor'!.

What a load of rubbish. I have never missed any payment off any of my cards, (I have 5) My credit report and score are both excellent as well. I spoke to one of their 'interest rate managers' but they could do no more than tell me what was on the generic letter.

The important bit then in you case if everything about is exactly the same as when you opened the a/c is ...or the way we look at your risk factor'!

Virgin have now a different assessment in place which makes you a greater risk and hence the increase. You can always opt-out and there will be no increase - or is that a problem?

moneysavingmarrow

time2fight wrote: »

I have just come out of my interest free period with virgin and have already had a letter saying my interest rate is going up from 16.9 to 24.9%. They say it is 'due to a change in your circumstances or the way we look at your risk factor'!.

What a load of rubbish. I have never missed any payment off any of my cards, (I have 5) My credit report and score are both excellent as well. I spoke to one of their 'interest rate managers' but they could do no more than tell me what was on the generic letter.

I put it to her that the reason they have increased it could be because I always have an outstanding balance on my cards and they thought they would up the rate to try and squeeze extra money out of me. She replied by saying I have the option to 'opt out' but this would, in effect be closing the account so why are they doing this to loyal customers who have always paid on time. This has also just happened with Barclaycard whom I have been with for over 20 years. That rate has now gone to 22.9 from 12.9%.

Are all of the top bosses trying to make sure their pensions are covered by screwing us for every last drop they can before we pay off or shift the balance elsewhere?

Sorry to hi-jack the thread from the original op..............
I too had that letter (as have many others) a couple of months ago, after coming off of their 0% deal.
Anyways. After paying a couple of months interest on the 6K I had with them, I managed to pay them off the other day and on ringing early yesterday morning, I discovered that my account was clear and indeed had a positive balance of £49.
I rang the no. on the letter yesterday to say that I would like to close my account with them as I was disgusted with their game plan and the guy on the other end didn't seem to bat an eyelid and proceeded to go through the proccess of shutting me down.
I mentioned to him that he didn't seem too worried about losing my custom, (expecting to be put over to customer retentions) and that seemed to also go completely over his head!
Virgin are obviously just using this card and as a publicity/marketing tool and most likely have orders from MBNA to get accounts closed as soon as possible on those that don't get hooked.

Looking forward to my next 0% deal from them in a couple of months though:rotfl::rotfl::rotfl::rotfl::rotfl:

bengal-stripe

moneysavingmarrow wrote: »

....to say that I would like to close my account with them.....and the guy on the other end didn't seem to bat an eyelid and proceeded to go through the proccess of shutting me down.

I mentioned to him that he didn't seem too worried about losing my custom, (expecting to be put over to customer retentions) and that seemed to also go completely over his head!

That is dreadful!!!

It’s like telling a girlfriend/boyfriend: “We are going nowhere, I think we should call it a day.” and they just say:
”Good idea, let’s do so.”

Doesn’t do anything for one’s ego....the shame....the shame....

maninthestreet

time2fight wrote: »

why are they doing this to loyal customers who have always paid on time.

The lesson you have learned is that don't get rewarded in the financial sector for being a loyal customer.

david39

I had the same problem with Capital One about 18 months ago.
I had the card for about three years and always paid off any purchases at the end of each month so no interest paid. Then had a minor emergency that caused me to use the card and leave a balance of about £500 carrying over, upon which they wrote and upped the interest rate from 14.9 to 29.9.
When I rang and complained they didn't seem to care and quite happily accepted that I would pay it all off within the next statement period and close the account.
Just before the date I said I would pay it, they even wrote to remind me!

I obviously had not been a profitable customer until I carried a balance over and then they upped the interest rate to try to collect as much money as they could from me. Well - they got one month's interest at 14.9% on £500 !