Credit Card removes my promotional rate

jess1509_2

ok, so Virgin have revoked my 0%APR on balances for 12 months. This is because a payment was 2 days late back in August. This was over the bank holiday so although the payment was sent on time it didn't arrive until the tuesday after the weekend.

As a result i was charged a default late payment fee and interest for the whole of that month. I wasn't told that my interest rate had changed so continued using the cards as i previously had, and as a result unfortunately went over my balance every month since.

I've rung Virgin today, and they've acknowledged that payments take longer on bank holidays, so have agreed to reinstate my 0% deal. However they won't refund any of my interest, overpayment or late payment fees. The total is a little over £200.

So my questions are:

1) Should they have told me that i'd lost my initial interest rate?
2) I have read that the legality of these clauses, where you lose promotional rates, is in question. Is this true?
3) Because the initial payment was SENT on time, but i didn't allow extra time for the bank holiday, would a challenge to Virgin achieve anything?

BugsyBrowne

jess1509 wrote: »

ok, so Virgin have revoked my 0%APR on balances for 12 months. This is because a payment was 2 days late back in August. This was over the bank holiday so although the payment was sent on time it didn't arrive until the tuesday after the weekend.

As a result i was charged a default late payment fee and interest for the whole of that month. I wasn't told that my interest rate had changed so continued using the cards as i previously had, and as a result unfortunately went over my balance every month since.

I've rung Virgin today, and they've acknowledged that payments take longer on bank holidays, so have agreed to reinstate my 0% deal. However they won't refund any of my interest, overpayment or late payment fees. The total is a little over £200.

So my questions are:

1) Should they have told me that i'd lost my initial interest rate?
2) I have read that the legality of these clauses, where you lose promotional rates, is in question. Is this true?
3) Because the initial payment was SENT on time, but i didn't allow extra time for the bank holiday, would a challenge to Virgin achieve anything?

It does say in the T&C's if your late you will lose any offers or promotional rates.

[Deleted User]

1) No. It's in the t&cs. And you will probably find that it was indicated in the statement, either through a message or the loss of the promotion in the rates sections.
2) No. Not that I have heard of.
3) No. The payment needs to be received on time. Not sent. Like scoring a goal in football. It needs to be in the back of the net before the final whistle. Not kicked.

ElkyElky

jess1509 wrote: »

ok, so Virgin have revoked my 0%APR on balances for 12 months. This is because a payment was 2 days late back in August. This was over the bank holiday so although the payment was sent on time it didn't arrive until the tuesday after the weekend.

As a result i was charged a default late payment fee and interest for the whole of that month. I wasn't told that my interest rate had changed so continued using the cards as i previously had, and as a result unfortunately went over my balance every month since.

I've rung Virgin today, and they've acknowledged that payments take longer on bank holidays, so have agreed to reinstate my 0% deal. However they won't refund any of my interest, overpayment or late payment fees. The total is a little over £200.

So my questions are:

1) Should they have told me that i'd lost my initial interest rate?
2) I have read that the legality of these clauses, where you lose promotional rates, is in question. Is this true?
3) Because the initial payment was SENT on time, but i didn't allow extra time for the bank holiday, would a challenge to Virgin achieve anything?

It will be stated in your credit agreement that Virgin can remove any promotional offers if you miss a payment.

It's your duty to ensure they receive payment by the due date and it's your responsibility to ensure you consider any bank holidays, weekends etc. It doesn't really matter if you paid on time.. the point is that they never received that payment and thus punished you. You unfortunately have no come back.. you're quite lucky to get your 0% offer reinstated.

Next time, don't leave it so close to the due date before paying. Consider paying as soon as the statement arrives as this will save you a lot of headache.

jess1509_2

booo, that's what i thought. worth a try though.

just a bit annoyed that if i'd rung them a couple of months ago i'd have avoided 2 months of interest.

YorkshireBoy

jess1509 wrote: »

just a bit annoyed that if i'd rung them a couple of months ago i'd have avoided 2 months of interest.

Or read your T&Cs...or checked your monthly statement. Both would have limited/eliminated your costs incurred.

Have you now set up a (minimum payment) direct debit to stop it happening again?

Rupert_Bear

jess1509 wrote: »

ok, so Virgin have revoked my 0%APR on balances for 12 months. This is because a payment was 2 days late back in August. This was over the bank holiday so although the payment was sent on time it didn't arrive until the tuesday after the weekend.

As a result i was charged a default late payment fee and interest for the whole of that month. I wasn't told that my interest rate had changed so continued using the cards as i previously had, and as a result unfortunately went over my balance every month since.

I've rung Virgin today, and they've acknowledged that payments take longer on bank holidays, so have agreed to reinstate my 0% deal. However they won't refund any of my interest, overpayment or late payment fees. The total is a little over £200.

So my questions are:

1) Should they have told me that i'd lost my initial interest rate?
2) I have read that the legality of these clauses, where you lose promotional rates, is in question. Is this true?
3) Because the initial payment was SENT on time, but i didn't allow extra time for the bank holiday, would a challenge to Virgin achieve anything?

You are to blame. Could have easily set up a dd for the min amount.

Hax

jess1509 wrote: »

This is because a payment was 2 days late back in August. This was over the bank holiday so although the payment was sent on time it didn't arrive until the tuesday after the weekend

bank holiday

The clue's in the name... You must have surely known that banks don't "operate" on a bank holiday and the postal service doesn't deliver on a bank holiday?

Plus, the bank holiday in August only affects the Monday - you say that your payment was two days late - so even without the bank holiday, your payment would have still been one day late. Sounds like you should have sent it so that it arrived on the Friday of the previous week.

As for going over your limit, etc.... There's no excuse for that - it's your responsibility to check your statements.

IMHO, you got off lightly with this one.

chexum

jess1509 wrote: »

booo, that's what i thought. worth a try though.

just a bit annoyed that if i'd rung them a couple of months ago i'd have avoided 2 months of interest.

There's one thing about MBNA that I'm not particularly not fond of - the online only statements. Although I'm not with them, I imagine they are sending email notification about new statements.

If this is the only communication you are receiving from them, and you have some time you can afford to lose, I would complain that although you have made a mistake, they were happy to leave you in the dark that you have broken the terms and conditions.

With the default charges controversy from a few years back, it was established that those charges must not be a penalty, but should be used to recover staff, postage, and system costs.

If, and only *if* they made absolutely no effort to contact you, just put an additional note on the online statements, you could claim that their charges (which are in line with the rest of the lenders that do call and/or notify you by mail) are obviously higher than could be expected, and seem to serve only the purpose to keep you in the red for longer.

I'd imagine it might be something worth complaining about and take it to the FOS in the end, a few letters and a few months may not hurt as much.

That being said, I have to admit even your post sheds a positive light on them - despite the payment reaching them late, and your failing to set up a direct debit, and not checking the statements, they still reinstated the 0% deal as soon as you queried about it. Just based on that, it sounds they are among the best in customer service.

bengal-stripe

chexum wrote: »

There's one thing about MBNA that I'm not particularly not fond of - the online only statements. Although I'm not with them, I imagine they are sending email notification about new statements.

MBNA is not online-only statements only. You can opt for getting them mailed. And they do send notifications, when the new statement is available on-line. - Well, you still have to log-in.

Three days later the printed statement appears on the mat. - Well, you still have to open the envelope.

chattychappy

jess1509 wrote: »

1) Should they have told me that i'd lost my initial interest rate?
2) I have read that the legality of these clauses, where you lose promotional rates, is in question. Is this true?
3) Because the initial payment was SENT on time, but i didn't allow extra time for the bank holiday, would a challenge to Virgin achieve anything?

1) The deal was that the rate would only last whilst payments are on time. They wouldn't have time to give you notice. The statements show the interest rate being applied.

2) I'm not aware of a successful legal challenge. Penalties shouldn't exceed a reasonable estimate as to the cost of the breach. There is an argument that withdrawing a promotion is a disguised penalty, but I think it's a weak one. In the end both sides entered into a bargain, part of which was you'd pay on time.

3) No chance.

MBNA have made an offer which they didn't have to do. So I think there is nowhere further to go for this, unless you want to try and make yourself a legal test case and have the patience, time and money to see it through.

It seems you delayed before contacting them. If you haven't been checking statements since August, that is also a breach of T+Cs.