0% Credit card hidden interest rates

caramackenzie

Hi first time on a forum but need some advice and thought this was the best first step.
I got the 0% for 16 months Virgin credit card in Dec 2008 and have just been reviewing my statement online and almost had a panic attack after realising that I've been paying interest the whole time...adding up to over £1200! in addition to £12 late fees for entire life of the card.
At the start of the card I set up a direct debit so not have to worry about late fees. However in May 2009 I noticed I was paying interest. I called and found that the day I was paying in was a couple of days after the bill date (not sure how this happened). They reinstated my interest free and I set up the correct date (that's what they said anyway). I was paying well over the minimum payment every month so thought I was fine....and as a result never looked at my account again. I know this isn't smart but as I wasn't spending on it I didn't think I needed to or want to be reminded of how much I still owed. However, to my horror the 0% interest was cancelled again the following month because it said I was late again and have been every month since....despite paying more than I need by direct debit every month. I'm freaking because I've paid £1200 interest and most likely have the worst credit score in the world - which ruins my plans to move the balance in April.
Can someone please give any advice....apart from why didn't you look at your statements earlier...I'm already beating myself up about this and still think £1200 is too much to learn this lesson.
Can I get the interst back? as well as the £12 charges every month and my credit rating back to normal????
Desperate!

jonesMUFCforever

You say that you set up a direct debit - did you get confirmation that £xx would be taken on xx date on either your paper or online statement?
If not then the first payment should have been done manually.
I know you do not want to hear this but you really should look at your statement at least once a month - you know this by now!
If you were paying by direct debit then you would not be getting late fees - so something is amiss in your story there.

If you were late or missed a payment they have the right to levy charges and unless it is a mistake on their part they do not have to refund them.
However a phone call won't cost you much - see what they say.

As for your credit files again unless it is a bank error then your files will show a row of late or missed payments and yes will affect your chances of switching the balance over to a new card.

oscar52

Im confused. You state that you were paying more than you needed to be Direct Debit - yet MBNA will only accept a DD for the minimum pr full amount - is this a Standing Order with your bank?

MBNA only report to your credit file after 5 days - so if your payments were due on 20 or 21 for example and being made on 22 or 23 - this would not have had an effect (unless you completely missed the first payment and have been in arrears ever since - ie paying the minimum payment but not the arrears)

soul619

people come here for advice! this is ment to be a place were people can admit there mistakes and look for help to resolve them yet time an time again people like you 2 just post trash that really dosnt need to be posted! you have been reported!

caramackenzie

Hi again,
Some comments helpful others not so. I'm not financially savvy but trying hard to sort my debt out so wanted help not a lecture. With regards to oscar's question, I had a direct debit for min payment and a standing order for extra payment. Luckily I have a friend who works in the bank who spoke to them on my behalf...I was way too emotional. Anyway positve news was that there were several bank errors...although it took them 45 min into the phone conversation and a lot of bartering to agree to pay back £612 of the £1100 back into my account and reinstate my in interest free and add another 2 months onto it. My friend who again is knowledgeable about how these people work wants to take it further so I'm now writing a letter to the Ombudsman to see if I can get the remainder sorted.

To James, genuine mistakes/misunderstandings happen, hope future posts are more supportive.