Virgin - minimum repayment (£5 or 2.25%)

Grumpy_Old_Duffer

Took out a Credit Card with Virgin recently, and when I received the card I Bank Transferred the allowed 95% of £5,000 Credit Limit to a High Interest Account.

Received my first statement this morning asking for the minimum repayment to be made of £5.00. I was expecting the minimum repayment to be the greater of £5 or 2.25% of the Balance Transfer, i.e. I was expecting to pay £111.38.

Are they right or should I just keep quiet and benefit from what I think is a mistake:rolleyes:

Tim_L

Virgin is an MBNA card, and this is a normal repayment. If you check your T&C you will find something about the payment being the lesser of £5 or 2.25 of the balance transfer during the intro period.

zcaprd7

Yes its right. It confused me but I think the equation is £5 plus any interest and as your are on a 0% deal its just the £5.

Handy for stoozing and cash flow if you are moving balances around - not sure if its naughty of them from a consumer debt point of view?

roaming_rhino

I checked into this also , thought they had mad a mistake as I have 8.5 k on my virgin card

thought sly buggers - they know many will only pay £5 instead of what is should be which is about £260

they didnt catch me out , still paying it off a whack at a time while its interest free

Grumpy_Old_Duffer

zcaprd7 wrote:

Yes its right. It confused me but I think the equation is £5 plus any interest and as your are on a 0% deal its just the £5.
Handy for stoozing and cash flow if you are moving balances around - not sure if its naughty of them from a consumer debt point of view?

Yipppppppeeeeeeeee!! :j :j

YorkshireBoy

roaming_rhino wrote:

I checked into this also , thought they had mad a mistake as I have 8.5 k on my virgin card

thought sly buggers - they know many will only pay £5 instead of what is should be which is about £260

they didnt catch me out , still paying it off a whack at a time while its interest free

If I've mis-read it, I'm sorry but I don't understand your last statement.

By "whack", are you saying you're paying off the £260 or just the fiver? Because I've now spoken to 3 people (including an underwriter today) at Virgin who all assure me that you only have to pay the fiver!

I'm still clarifying the details of this offer, as I'm considering going for one myself - see the "is stoozing really this easy?" thread.

YB

Reaper

roaming_rhino wrote:

thought sly buggers - they know many will only pay £5 instead of what is should be which is about £260

they didnt catch me out , still paying it off a whack at a time while its interest free

Rather than paying off more than you need to how about putting that extra £255pm into a savings account and paying it off all in one go just before the deal ends? That way you can earn interest on it.