Virgin credit card - a tale of woe!!

GSD4ME

Last January I took out a Virgin credit card to get use of their interest free balance transfer. Things worked well for a couple of months, then I noticed I was being charged interest. I eventually found the right telephone number after searching the back of their statement for ages and I contacted them to ask why.

I was told, by a pretty rude man, that I had paid a bill late. When I expressed surprise he said that I had to allow five working days for the internet transfer to reach their bank. I stated that this was the twenty first century, not the dark ages, but he did not seem impressed. When I asked where in the small print it stated that a late payment meant I would lose the interest free credit he rattled off the paragraph number, something like paragraph 2.5.4.6.A1. I got the distinct impression he had been asked this question a lot of times before, by other dissatisfied customers. I realised I would have to accept it as being my fault.

It was only after this call had ended that I realised that the main reason the payment had arrived late was that they had changed my payment date from the 16th of the month to the 13th. I had not noticed, partly because it is not printed on the front of the statement, but is hidden away on the back. Now I know it is my own stupid fault for not reading the statement in more detail, but I could see no reason to move the payment date forward by three days. Annoyed, I transferred the money out and did not intend to use the card again.

For the next few months I was absolutely bombarded with letters and e-mails offering me cheap credit transfer deals, I ignored them until Egg raised my interest rate by 4 points when I stupidly transferred the balance from my Egg card to Virgin.

Now, blow me down! The same thing has happened again. :eek: I noticed, just in time – I hope, that this month’s payment date has moved from the 11th to the 8th. Since it takes 5 banking days to clear the payment I have to pay it on the 1st to be sure it is there is in time, this compares with having to make payment on the 10th when I first took out the card.

This strikes me as a real rip-off. Forgive me if I am being cynical, but this looks like a real scam for the credit card company. First you offer really cheap rates and send existing customers a deluge of mail offering cheap BTs, then you take five days to clear money and sneakily shift the payment date forward every now and then to try and catch them out. You can then say they have relinquished to right to the cheap deal and charge them your top rate of interest.

This is clearly legal and maybe other cards do it, although my other credit card companies do not change their payment dates every month or so. But it is certainly not ethical and I am most annoyed at it being part of the Virgin brand. Virgin has a reputation as a cuddly, friendly, nice guy sort of company, not a rip off.

Oh by the way the card is run by MBNA, which I know has a rather poor reputation on here. With tricks like this it is hardly surprising.

heppy23

I avoid this situation by making weekly payments by standing order.
As long as you can pay by internet banking you can pay by standing order.

Add £10 to the average minimum payment then divide that by 4 and set that up as a standing order.
Never had a late payment problem.

It's not a level playing field, the companies have to try and trick you into breaking the deal you made.

GSD4ME

That's a good idea.

I never thought of doing it weekly. Paying by monthly DD would not work if they keep shifting the payment date forward, but weekly is a good idea.

Phoenix79_2

heppy23 wrote:

It's not a level playing field, the companies have to try and trick you into breaking the deal you made.

The 'company' is giving you an interest free loan for 12 months and the only thing you have to do is read your statement and make sure you pay on time? I'm happy with that deal.

bengal-stripe

GSD4ME wrote:

Paying by monthly DD would not work if they keep shifting the payment date forward...

DD does work, the money (either minimum or full payment) will be taken out of your account on the day payment is due. You only have to take care that sufficient funds are available on that day.

tom188

you wont get charged if you read when the payment is due and how long in advance you should make the payment from the due date. both are clearly shown on your statement. just read what youve agreed to and any changes and youll be fine.

dazed

GSD4ME wrote:

That's a good idea.

I never thought of doing it weekly. Paying by monthly DD would not work if they keep shifting the payment date forward, but weekly is a good idea.

The dd would move with the payment date..........

So setting up a monthly dd for the minimum amount is a good idea. They also send you a letter advising that the payment date is moving too......

tinkerbell212

You cannot really expect the date of payment to be in to be the same every month. One month has 30 days, the next 31 days. So it really is up to you to check the date the payment has to be in. I've set up a direct debit for the approximate monthly payment. That way, if I ever do forget the paydate, at least an amount has been paid to avoid incurring extra costs.

sdj25

GSD4ME wrote:

When I asked where in the small print it stated that a late payment meant I would lose the interest free credit he rattled off the paragraph number, something like paragraph 2.5.4.6.A1.

This just tells me you didn't read the terms & conditions. A simple question from me, why didn't you?

And another question, will you in the future?

Got to say I agree with Phoenix79 on this one, they are effectively giving you money for nothing, as long as you adhere to the rules you agreed to when signing the document.

vwman_3

Banks (not that they ever will) should make it a condition that DD's are set up at the time of application for cards then these types of problems would never arise.
Until that magical time comes WE HAVE TO DO IT OURSELVES, think application, think DD..........

GSD4ME

bengal-stripe wrote:

DD does work, the money (either minimum or full payment) will be taken out of your account on the day payment is due. You only have to take care that sufficient funds are available on that day.[/QUOTE]

That's the point. I am loathe to set up a DD as my income is variable, I only get a certain amount paid into my account directly, the rest arrives by cheques, internet transfer etc. at different times so I can never guarantee having enough there to meet the DD and my bank is very quick to charge £38 for bouncing a DD if there are insufficient funds.