Virgin credit card rate increase

I've had a Virgin credit card for about 2 years now, initially on 0% for 12 months and been approx 16.9% since this ended.

Today I received a letter saying that from August my rate will be 24.9% for purchases and 26.9% for balance transfers!! I've never heard of such ridiculous rates outside the sub-prime market or such a high rate increase for no reason whatsoever. Never missed a payment in my life etc etc.

Obviously they feel they don't make enough money from me but an 8% rate increase?!? 1 or 2% I can accept but 8%! Do I wish to accept this or opt out and close my account? Hmmm I wonder which option I'm choosing!!

I always thought being screwed by a Virgin was supposed to be a good experience!!

Anyone else had this from them?
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Comments

  • CannyJock
    CannyJock Posts: 3,838
    Combo Breaker First Post
    Forumite
    Nope, but you can refuse the increase if you stop using the card - have a search for ratejacking and you'll get all the info you need.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • I HAD SOMETHING similar - just call up and they wil close the account and you continue to pay at the 18. what ever rate it was before.
    O/S Debt: PL £[STRIKE]15207.34[/STRIKE] £9884.55; HSBC £4060.99; Tesco£1430.15; M&S £5990.17; Virgin [STRIKE]£5158.69[/STRIKE] £4210.14; Egg £4619.00; O/S = ££30,292.42 AIM - To Be Debt Free 56 months
  • Pantera_Fan
    Pantera_Fan Posts: 117 Forumite
    Thanks for replies - found lots about Virgin / MBNA rate jacking shortly after posting this. Luckily when I logged into Egg last night they were offering me an anniversery 0% for 6 months so shifted everything. I've had egg for years and thought they stopped doing anniversery offers after a certain amount of years but worked out well in the end as was planning on cancelling one or the other before all this.
  • Pantera_Fan
    Pantera_Fan Posts: 117 Forumite
    edited 6 July 2010 at 7:36PM
    MRSARON wrote: »
    ME AND MY HUSBAND ARON ARE HAPPY THAT THAT FAKE MUPPET NEVER-IN-DOUBT HAS GONE, ALTHOUGH THE SCOTTISH SECURITY GUARD WILL ACTUALLY STILL BE READING THIS TO SEE HIS WHAT HIS SO CALLED "MATES" ARE UP TO :D:D:D:D:D

    PROBABLY USING ONE OF HIS MANY ALIASES INCLUDING MRS NIDDY...I MEAN REALLY CANT IT DO BETTER THAN THAT:rotfl::rotfl::rotfl:


    THE HEARTFELT OUTPOURING OF EMOTION FRON YOU LOT IS TOUCHING TO SEE BUT YOUVE ALL BEEN SUCKERED IN BY YOUR "MATE" NIDDY, YU MIGHT THINK HE/SHE/IT IS HELPING YOU, WHEN IN FACT MOST OF THE INFORMATION IS GLEANED FROM GOOGLE AND IF YOU BOTHERED TO CHECK IT OUT FOR YOURSELF YOU WOULDNT NEED TO RELY ON NIDDY TO LICK YOUR !!! AND HOLD YOUR HAND EVERY STEP OF THE WAY :D:D:D:D:D:D


    THANKS GOD HE/SHE ITS GONE, THE PLACE WAS GETTING CLOGGED UP WITH TOO MUCH OF NIDDYS RETORIC....SO THANK GOD ITS GONE :T:T:T:T:T:T:T:T


    MOST OF YOU COULDNT TAKE A LEAK WITHOUT A HELPING HAND JUDGING BY SOME OF YOUR DESPERATE CRIES FOR HELP

    AND ALSO REMEBER LIKE MSE MANAGER SAID, THIS IS NOT THE REAL WORLD,REMEBER THAT,FAR TOO MAY OF YOU TREAT IT AS A PLACE TO SOCIALISE, NOOOOOOOOOOOO THATS WHAT THE REAL WORLD OUTSIDE IS FOR,DO REMEMBER THAT NOW "MATES"

    ALSO YOU DONT GAIN ANY KUDOS BY MAKING THOUSANDS OF POSTS AND !!! LIKKIN EACH OTHER BY THANKING EVERY SINGLE POST WHEN THE VAST MAJORITY OF TIME ITS ALL PART OF YOUR LITTLE GAME TO INCREASE YOURE WORTH AMONGST YOUR SO CALLED NON REAL LIFE M8S,MOST OF WHOM WOULD STAB YOU IN THE BACK AT THE FIRST OPPORTUNITY.

    ANYWAY PEEPS,TOODLEPIP AT LEAST ME AND MY HUSBAND ARON HAVE WON.

    NO MORE NIDDY,THE BUILDING SITE SECURITY GUARD WHO CANT GET HER/ITS/HIS STORIES STRAIGHT.

    :D:D:D:D:D:D:D:D:D:D:D:D:D:D:D

    Smoked a bit too much crack today?! Are you referring to me?!? Sorry but I really think you have the wrong person. I simply asked a question in a moment of shock as never had anything like this before then did a bit more searching a bit later.

    Edit - I see you have now deleted your post from this thread.
  • moneypenny2k
    moneypenny2k Posts: 1,121
    First Post First Anniversary Combo Breaker
    Forumite
    Smoked a bit too much crack today?! Are you referring to me?!? Sorry but I really think you have the wrong person. I simply asked a question in a moment of shock as never had anything like this before then did a bit more searching a bit later.

    Edit - I see you have now deleted your post from this thread.
    Pantera - ignore it, they're a troll, trying to cause mischief and it's not directed at you.

    Virgin tried to do this to me also. Thankfully I was in the middle of moving my balance elsewhere, paid it off and closed the account. I think it's a blanket thing. I'd never missed a payment either albeit my Virgin card was last on the snowball list as it had the lowest min payment.
  • Back to the topic - lucky old you! Virgin have jacked my rate to 29.9%. I have never missed a payment and not heard of anyone on a rate like this before. Moreover I'd stopped using the card for over six months to get the balance down but in spite of this and my ALWAYS making the payment the balance has gone UP over that period by a very substantial amount. How does THAT work?
    I phoned them today to ask them how in the world this was justified and a very embarrassed young man called Brian tried to sell me a loan at a non fixed rate. Would you buy a loan at a non fixed rate from a company who had just jacked your interest up to 30% when you were trying to pay off your card?

    With some difficulty I got an address to complain to:
    MBNA Europe Bank
    PO Box 1004
    Chester Business Park
    Wrexham Road
    Chester
    CH4 9WU
    Can anyone suggest any sensible legal jargon to try on them given that it's presumably a waste of time and just going through the motions until I can get to the ombudsman?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541
    Name Dropper First Post First Anniversary
    Forumite
    ...in spite of this and my ALWAYS making the payment the balance has gone UP over that period by a very substantial amount. How does THAT work?
    Do you have PPI on the account?
    Have you made cash withdrawals in the past?
    Have you read the minimum payment calculation information in your T&Cs or the summary box?
    With some difficulty I got an address to complain to:
    They're quite open about that address on their website...

    http://uk.virginmoney.com/virgin/contact/complaint.jsp
    Can anyone suggest any sensible legal jargon to try on them given that it's presumably a waste of time and just going through the motions until I can get to the ombudsman?
    What are you complaining about?...the fact that they've increased your 'variable' rate or the fact that your minimum payments are not reducing the balance? Or maybe both?

    I assume by now you've already exercised your right to 'opt out' and stay on your old rate?
  • Do you have PPI on the account?
    Have you made cash withdrawals in the past?
    Have you read the minimum payment calculation information in your T&Cs or the summary box?They're quite open about that address on their website...

    What are you complaining about?...the fact that they've increased your 'variable' rate or the fact that your minimum payments are not reducing the balance? Or maybe both?

    I assume by now you've already exercised your right to 'opt out' and stay on your old rate?


    I don't have PPI - they tried to put it on in the beginning against my wishes and I made them take it off again.

    I'm complaining about the ursurus rate of interest Yorkshireboy and I don't recall getting any opt out letter. Doesn't mean they didn't send one, the post round here is awful. I've also never had a card before where the minimum payment didn't reduce the balance.

    As you don't have anything constructive to contribute perhaps you can go and have a go at someone else because I've got enough problems right now?
  • Jigga
    Jigga Posts: 167 Forumite
    Virgin is well known for rate jacking those who don’t clear their balances. See this thread from last week that outlines basically the same issue.
    http://forums.moneysavingexpert.com/showthread.php?p=37976440&highlight=#post37976440

    I admit it doesn’t help your situation, but it shows that you are not alone. They did it to me once and like you I wasn’t very happy, but I was fortunate that in I could clear the balance and close the account. I became wiser the second time around..........and also got some low cost credit for another 15 months too.
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    I don't have PPI - they tried to put it on in the beginning against my wishes and I made them take it off again.

    I'm complaining about the ursurus rate of interest Yorkshireboy and I don't recall getting any opt out letter. Doesn't mean they didn't send one, the post round here is awful. I've also never had a card before where the minimum payment didn't reduce the balance.

    As you don't have anything constructive to contribute perhaps you can go and have a go at someone else because I've got enough problems right now?

    I think the best bet since the rate rise's is to spread your balance's onto different cards,and only try to have reasonably small amounts and then your not to worried if they hike your rate up as you can quickly swap your limits over and sack the card.
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