Is 34.9% grounds for complaint?

~Brock~

AndreaE wrote: »

I just telephoned the Financial Ombudsman and they are writing to Virgin on my behalf.

I was asked my objective and I said it was to pay less each month but at a reduced rate so that at least some of the payment was going towards repaying the debt rather than just paying them £4k interest a year on a debt that will never reduce.

Virgin will be given 8 weeks to come to an arrangement with me and if they don't, I will need to make an official complaint with the Ombusdsman.

The card company has not done anything illegal or 'wrong' - your problem is that you cannot afford to pay.

It's not the Ombudsman Service you need, its a Debt Management arrangement.

AndreaE

I'm not suggesting they have done anything illegal Brock but as for wrong - we'll have to agree to disagree.

I think an interest rate of 34.9% cannot be justified and I would think that whether I could afford to pay it or not.

~Brock~

That's why I put 'wrong' in quotations, meaning in absolute terms as opposed to your opinion.

I dont agree or disagree with your stance, its just that in your position I cannot see what good the FOS will be able to do as they are in no position to set a lenders interest rates for them, whereas if you cannot afford your credit commitments and do something proactively about it you may well find that interest charges get reduced or frozen anyway.

dmg24

~Brock~ wrote: »

The card company has not done anything illegal or 'wrong' - your problem is that you cannot afford to pay.

It's not the Ombudsman Service you need, its a Debt Management arrangement.

I agree with ~Brock~, this is not within the jurisdiction of the Ombudsman. In complaining to them, all you are doing is drawing out the process, and eliminating any chance of a goodwill gesture from Virgin.

tamarto

You chose to borrow a substancial amount on a card which has a variable apr, surely the point to have noticed there was the fact that the interest rate can go up?

They have given you an option which you didn't chose several times it seems, if they have kept raising the apr enjoying the perks of having the card in the meantime and now when the cost doesn't suit you are complaining....

Is the card now maxed by any chance? :rolleyes:

Wickedkitten

If I were you, I would have a really good look at the debt free wannabe section to see about working on your outgoings.

_Andy_

Agreed with the above - feel free to complain to the Ombudsman about the rate but be warned a) they are snowed under so will take ages and b) won't do anything as the agreement was for a variable rate

~Brock~

_Andy_ wrote: »

Agreed with the above - feel free to complain to the Ombudsman about the rate but be warned a) they are snowed under so will take ages and b) won't do anything as the agreement was for a variable rate

and c) will add a pointless £500 case fee to Virgin's account that WILL somehow get clawed back from their customers in the future.

_Andy_

May I be so bold as to add d) Will frustrate the OP even further as it won't get the result they're after

Daisy_Duck

AndreaE wrote: »

I just telephoned the Financial Ombudsman and they are writing to Virgin on my behalf.

I was asked my objective and I said it was to pay less each month but at a reduced rate so that at least some of the payment was going towards repaying the debt rather than just paying them £4k interest a year on a debt that will never reduce.

Virgin will be given 8 weeks to come to an arrangement with me and if they don't, I will need to make an official complaint with the Ombusdsman.

I'm confused. You don't need to contact the Ombudsman to keep your old rate... you just call Virgin and they must do this.