Virgin Minimum payment changes - can I do anything?

misterfusty

Hi

I got a letter from Virgin Money today informing me of minimum payment changes, before I was paying the interest plus £5, now it has changed to 1% of the balance plus the interest.
Unfortunately this means I have to find another £40 ish a month from somewhere, which I can't afford to do at the minute.
Is there anything I do to stop this or get them to reduce the interest so I don't pay so much per month? I understand that it will make the debt come off quicker I really can't afford it at the minute.
Anyone else had any luck with them?

jonesMUFCforever

Was there a telephone number on the letter - just for people like yourself who may be in financial difficulties?

misterfusty

jonesMUFCforever wrote: »

Was there a telephone number on the letter - just for people like yourself who may be in financial difficulties?

There was a number which, I called but unfortunately they are not there after six, I do have their number though. I'll try tomorrow. Thanks

CLAPTON

misterfusty wrote: »

There was a number which, I called but unfortunately they are not there after six, I do have their number though. I'll try tomorrow. Thanks

do think carefully before you phone

telling a financial company that you are in financial difficulties may have unintended consequences

misterfusty

CLAPTON wrote: »

do think carefully before you phone

telling a financial company that you are in financial difficulties may have unintended consequences

Ok, what do you think I should say? And what could be the consequences?

thatsean

Potentially them pulling the account, remember, you are telling them that you don't have the means to service the minimum level of payments. That said, if that's the situation you're in, perhaps working out a plan to clear the account isn't the worst idea?

You say you can't afford this at the minute, when are you expecting your circumstances to change, and why?

The peeps on the debt free wannabe board can no doubt help you take a longer term view to clearing this.

CLAPTON

it has been reported that when people say they are in financial difficulties and ask for rate reductions or lower payments then
-sometimes the opposite happens as they are now seen as some-one who might default on the debt ..
- so the APR might increase to reflect the higher risk
-the account might be frozen so it can't use used again (which may be a good thing but depends upon your situation)
- or if they do reduce the payments that might be reported as an 'arrangement to pay' on your credit reports and so will have an adverse affect on any future credit applications


without knowing your full situation I can't comment on whether or not you should do that but just be aware of the possible consequences

misterfusty

Ok thanks for the help. I think I might look to shift the debt onto another credit card. The virgin account is already frozen as they hiked the rate up last year and opted to keep the current rate and freeze the account.

oki25

If there is any way that you can avoid going on a payment plan with MBNA then please do so, they can affect your credit file for 11 years. There is no way to change the new min payment option as this is FOS recommended. Call them and ask!

chattychappy

oki25 wrote: »

There is no way to change the new min payment option as this is FOS recommended. Call them and ask!

It's a regulation in respect of new accounts, that's all. MBNA/Virgin are makng a commercial decision here, that's all.

This change is of doubtful legality IMHO - I hope someone does challenge it. Unfortunately it might have to be a court rather than the FOS that makes the ruling.

smiffy

I've been caught out by this Min Payment change - basically I'd not read anything about it.

I'd transferred a balance to the card at 0% back in February, set up a SO to pay £25 and then the remain £4000 balance in December before the 0% offer expired.

The first I know of a potential issue was a text I received yesterday telling me the min payment had changed. Upon checking I'm now in arrears as I only paid £25 and they wanted £16 more.

I've now paid this £16, and can pay the higher minimum payment. However they have now moved me from 0% to 18%!!!

I don't have the £4k to pay off the card now, the first line customer services can't help me. Am I within my rights to reject these changes to T&C's and stick with the original agreement / promotion rate?

I've requested a manager call back - but I'm not holding my breath.

The stupid thing is they have written to me and offered me an even longer 0% promotional rate for new transfers!

Any advice much appreciated.