late charges & interest

ikesouth

Hi,

My partner took out a Virgin credit card with 12 months 0% on purchases. The 0% doesn't end until July 2011. Up until the incident all payments have been made on time and there were no problems with the account.

The payment for the December statement was due on 16/01/2011 (a Sunday), and the payment was made on Friday 14/01/2011 after 5pm from memory. However the payment did not arrive until Monday the 17th resulting in a £12 late payment charge.

We realise that the payment was made late, and realise that enough time was not allowed for the payment to clear in time, but if a credit card company sets a payment due date on a Sunday, don't the rules state that the payment date is moved to the next working day? In which case that would be the 17th and the late charge would not applie?

In addition to above, they have also charged interest of £14 ish for January (Credit limit has not been exceeded). However the account still have 0% until July. Would the late payment have caused the loss of the remaining 0%? Surely they can't take that away because of a payment that is one day late?!

Thanks

izools

Call them up, eat humble pie, explain that you made a mistake and are aware of what went wrong, reassure them that you will allow more time in future, and request they set up a DD for the minimum payment to prevent the same happening in future. Then ask nicely if they are able to re-instate the interest free period in light of the circumstances.

Most credit card companies, when spoken to in the manner suggested, will re-instate the interest free. They may or may not refund the fee / interest, but this is a price you'll be best advised to take on the chin given you didn't allow sufficient time for the payment to clear.

If you knew the payment due date was on a Sunday you should have allowed sufficient working days for the payment to clear - as detailed in your credit agreement and on the reverse of your statement.

Good luck with it though :beer:

YorkshireBoy

ikesouth wrote: »

The payment for the December statement was due on 16/01/2011 (a Sunday)...

Correction: It was due BY Sunday 16th, ie Friday 14th if not paying by DD.

and the payment was made on Friday 14/01/2011 after 5pm ...

How was the payment made?

...if a credit card company sets a payment due date on a Sunday, don't the rules state that the payment date is moved to the next working day?

ONLY in the case of payment by direct debit. Why haven't you insured against this by setting a minimum payment direct debit up?

However the account still have 0% until July. Would the late payment have caused the loss of the remaining 0%? Surely they can't take that away because of a payment that is one day late?!

Oh yes they can, and have done for you...as they said they would in the T&Cs.

Best way forward? Call their customer loyalty department* on 0800 783 1116 during office hours and plead your case. Asking to set up the aforementioned minimum payment direct debit during this call has proved successful for others reporting the same problem as you. However, some MBNA employees who post on here have said they only reinstate 0% offers following breaches made in the first 3 months so good luck...you'll need it.

* Four areas to negotiate on:

1. Interest paid to date
2. Interest yet to be paid (ie the reinstatement of the 0% offer)
3. £12 late fee
4. CRA update, and the damage to your credit file