Very & Additions APR gone up 400%

deanos

The interest rate on my Very & Additions account was 9.9% however i have received my statement's today and it now shows 39.7% :mad: , i have had no warning or letters.

Can they do this ?

Luckily i don't owe anything , but i can see this affecting other people especially if they have a big balance owing.

RadoJo

I would have thought that in their Ts and Cs it would say that they reserve the right to vary their percentage rate, but if you're not sure then check them and see if they have a clause which relates to the interest.

deanos

Yes it does say it can vary i had a look last night, but surely they must give some sort of notice , i thought there may be some sort of limit as from 9.9% to 39.7% is a huge difference

Broken_hearted

Best thing to do is pay off anything you owe and close the account, making sure you tell them why.

HouseHuntr

deanos wrote: »

The interest rate on my Very & Additions account was 9.9% however i have received my statement's today and it now shows 39.7% :mad: , i have had no warning or letters.

Can they do this ?

Luckily i don't owe anything , but i can see this affecting other people especially if they have a big balance owing.

The APR (just as all non-offer credit cards are)is variable and can be ammended at any time. The notification process is via the statement. Does seem a rather large increase though which could suggest your nearing your limit perhaps, paying abosolute minimums or they've reassessed your credit file and perhaps you're stretching things overall financially and are therefore now a greater risk ?

As you'll know though purchasing from them on BNPL is very easy which effectively puts the APR at 0% if you budget accordingly.

vuvuzela

deanos wrote: »

The interest rate on my Very & Additions account was 9.9% however i have received my statement's today and it now shows 39.7% :mad: , i have had no warning or letters.

Can they do this ?

Luckily i don't owe anything , but i can see this affecting other people especially if they have a big balance owing.

Sadly they can do whatever they want as it's a variable account. Desn't make them anything less than moneygrabbers though
Oh, and it's an increase of 300%, not 400%.

deanos

HouseHuntr wrote: »

The APR (just as all non-offer credit cards are)is variable and can be ammended at any time. The notification process is via the statement. Does seem a rather large increase though which could suggest your nearing your limit perhaps, paying abosolute minimums or they've reassessed your credit file and perhaps you're stretching things overall financially and are therefore now a greater risk ?

As you'll know though purchasing from them on BNPL is very easy which effectively puts the APR at 0% if you budget accordingly.

Like i say i don't owe anything, i always pay on time, just miffed its gone up so much !

rsykes2000

It's presumably designed as they aren't making any money from you out of monthly carry-over to try and catch you out if you miss a monthly payment. Pretty cynical.

Hank_Marvin

Can anyone answer me this, if you use bnpl, do they use deferred interest backdated to when you made purchase or, does interest start from the 1st month after bnpl has ended.

fozmcfc

Hank_Marvin wrote: »

Can anyone answer me this, if you use bnpl, do they use deffered interest backdated to when you made purchase or, does interest start from the 1st month after bnpl has ended.

Below is taken from Very's website, I would say interest is backdated. Very have a direct debit payment option "take minimum, interest free payment.". This further suggests to me, it will be backdated.

"Interest will be calculated from the date of your purchase but it will not be charged to the account until the expiry of the Buy Now Pay Later period. You can avoid paying interest on the products purchased on this offer by paying the cash price in full prior to the expiry of the Buy Now Pay Later period"

I have 2 purchases on buy now pay later, I have basically been paying into my account for the past year, so when the first one finishes next month, they can take the minimum, interest free payment. I won't be happy if they try to charge me interest. My account at the moment shows -£242.05, credit limit £1300 amount to spend £1300.

Hank_Marvin

Cheers Foz that does sound like /is deferred interest - cheers.