Virgin MasterCard minimum payment has increased by over £100, why?

disneybelle

Can Virgin legally do this? When I transferred some other debts on to this card I specifically asked what the minimum payment would be so I knew I could afford the repayments. My payment has now risen from £48, which I was just about managing, to £127. I can't afford the rise and Virgin have given me a number to call for help but if they agree to lower the payment will it affect my credit score?

drbesty

Yes they can legally do it, otherwise they wouldn't have, they can set the minimum payment at whatever they like aslong as they give you notice before increasing the charges

chattychappy

disneybelle wrote: »

Can Virgin legally do this? When I transferred some other debts on to this card I specifically asked what the minimum payment would be so I knew I could afford the repayments.

Based on this, I think you have a legitimate complaint. Don't get into the "I can't afford it" thing, this is not the issue. If they promised you something and you relied on this, then argue on that basis. No doubt they will say they will they were just advising you of the arrangements as at the time they spoke to you, etc. But worth a try. Do it in writing, and escalate to the FOS if necessary. Don't get your hopes up though.

drbesty wrote: »

Yes they can legally do it, otherwise they wouldn't have,

Well... that's naive for a start. Companies often fall foul of regulation - sometimes by mistake, sometimes knowingly or sometimes because the law or its interpretation moves on.

drbesty wrote: »

they can set the minimum payment at whatever they like aslong as they give you notice before increasing the charges

Just because the written T+Cs allow them to do this, doesn't mean they can. Would you still hold that view if, for example, they decided to raise the minimum payment to 50% of the outstanding balance? Or 90%?