Interest Calculation Increasing - No rate change

barncourt

Hi. I've got a Virgin Credit Card with a balance which I am currently paying down each month. My payments are always at least twice the minimum payment. I am not putting any new items on the card. Despite a reasonable reduction in the overall balance over the last six months, I find the minimum monthly payment is actually increasing, and so too is the interest calculated and applied each month - why is this? Surely, if the overall balance is decreasing, the amount of interest applied should also be decreasing not increasing particular where there is no rate change applied? The initial balance was a transfer at 0%, then Virgin shafted me by increasing the interest rate to a ridiculous amount for no obvious reason. After I complained, they agreed to reduce the rate (still high!), and I've been consistently reducing the balance outstanding to pay off the card. But I cannot understand how the interest is being calculated - and therefore I am unable to check whether it is correct. I've tried to get a more competitive deal with another provider, but keep gettting turned down. Don't know why, because my Experian rating is 482 out of 500, and Lloyds TSB say I'm 2 out 9 by their measure (1 being the best and 9 the worst).

Totally p****d off with the banks and their treatment of long standing customers who have maintained their accounts in good standing. Complete bunch of sharks as far as I'm concerned. I'm following the general advice from Martin and other financial experts and paying off any remaining debts as fast as I possibly can before the country goes completely tits up.

HappyMJ

When you make payments to the card you are paying off the 0% debt first and the debt incurring interest is increasing so the interest goes up every month until there is no 0% debt left then it will start decreasing.

barncourt

HappyMJ wrote: »

When you make payments to the card you are paying off the 0% debt first and the debt incurring interest is increasing so the interest goes up every month until there is no 0% debt left then it will start decreasing.

Hi. Yes.. But I don't recall making any transactions on the card other than the initial balance transfer. I've contacted Virgin and await their reply. Will post the results back once I get them.....

jonesMUFCforever

Have they started charging interest on the balance transfer fee?

oscar52

BT fee gets rolled into the BT balance so will not accrue interest.

However, if you have PPI - this counts as a purchase and will accrue interest at standard rate 16.6% on most Virgin cards (if relatively new account)