Charged a late payment fee, for paying too early!

Kanichen

Just had a totally incredulous phonecall with Virgin Money. I had been charged a late payment fee of £12 - for paying too early!! Every month on payday I transfer the minimum payment (card was on an interest free deal).

Apparently, my statement closing date is the 2nd of the month. My payment due date is the 21st of the Month. Because I have been paying on payday every month (25th) this doesn't fall within the 2 days so apparently doesn't fall within the optimum window so I go down as having missed a payment!

Even the girl on the phone says its the most ridiculous thing shes ever heard and has refunded the £12 fee. Needless to say I have also cleared my balance and closed the card.

What I'm more concerned with though is my credit record, I have never missed a payment and I don't want any blots on my credit record!

Is this likely to have any impact?

tomsco

Kanichen wrote: »

Just had a totally incredulous phonecall with Virgin Money. I had been charged a late payment fee of £12 - for paying too early!! Every month on payday I transfer the minimum payment (card was on an interest free deal).

Apparently, my statement closing date is the 2nd of the month. My payment due date is the 21st of the Month. Because I have been paying on payday every month (25th) this doesn't fall within the 2 days so apparently doesn't fall within the optimum window so I go down as having missed a payment!

Even the girl on the phone says its the most ridiculous thing shes ever heard and has refunded the £12 fee. Needless to say I have also cleared my balance and closed the card.

What I'm more concerned with though is my credit record, I have never missed a payment and I don't want any blots on my credit record!

Is this likely to have any impact?

No real point closing the card. All CC companies do this.

trikidy

Yes a late payment will have an effect.
I think you can ask them to change the status of it, or put a note on the late payment explaining it.

chattychappy

Kanichen wrote: »

I have never missed a payment

But you have now....

Kanichen wrote: »

Is this likely to have any impact?

A single late payment has a limited effect, but it quickly fades with time. Many people who are a good risk occasionally make a mistake.

I think you were treated pretty well. You broke the rules, but despite that, they refunded the fee. Why close the card?

Gromitt

Kanichen wrote: »

this doesn't fall within the 2 days so apparently doesn't fall within the optimum window so I go down as having missed a payment!

Typo? I think you mean 20 days, not 2 days. All card issuers give you 20 days to pay the minimum amount due on your statement. You can't expect them to wait until you decide you want to pay them.

Kanichen wrote: »

Even the girl on the phone says its the most ridiculous thing shes ever heard and has refunded the £12 fee.

Then she's probably new. You were lucky to get the refund considering its your fault.

Yes, it will be a blotch on your credit report. You might get more declines than usual over the next 6 months (maybe longer if you no longer have any open lines of credit). Closing your account was a silly thing to do. Seeing one late payment with green ticks either side can often be ignored.

izools

Just remember this when you get a card elsewhere. Others mightn't be so forgiving.

You made two payments in one billing cycle and none in the next so yes, you did miss a payment. If you chose to make one payment on the 2nd and another on the 3rd would you expect the payment you made on the 3rd to count towards the following months bill? Of course not.

Same thing.

Next time pay each bill after the bill date and before the due date.

You should set up a direct debit to take the minimum amount by direct debit to avoid this happening with a new provider.

Good luck!

papalimabravo

An option would have been to change your statement date to ensure your payment date was more suitable for you.

pauldave91

That is really true and you are lucky too missing a payment and even got a refund, so how about going back to it and open the account you have closed?

katejo

Kanichen wrote: »

Just had a totally incredulous phonecall with Virgin Money. I had been charged a late payment fee of £12 - for paying too early!! Every month on payday I transfer the minimum payment (card was on an interest free deal).

Apparently, my statement closing date is the 2nd of the month. My payment due date is the 21st of the Month. Because I have been paying on payday every month (25th) this doesn't fall within the 2 days so apparently doesn't fall within the optimum window so I go down as having missed a payment!

Even the girl on the phone says its the most ridiculous thing shes ever heard and has refunded the £12 fee. Needless to say I have also cleared my balance and closed the card.

What I'm more concerned with though is my credit record, I have never missed a payment and I don't want any blots on my credit record!

Is this likely to have any impact?

I am puzzled about why you think you have paid early. If the statement closing date is the 2nd and the payment due date is the 21st, then a payment on the 25th is late.

My statement closing date (different credit card) is the 21st and my due date is about the 10th. I get paid on the 27th so then clear my debt on the 28th.

pqrdef

When the statement is issued on the 2nd, it tells you to pay a certain amount by a certain date. If this could be satisfied by a payment you've already made, which is already shown on the statement, why would it ask you to pay again? Why wouldn't it just say "you have already made your payment, nothing further to pay for now"?

opinions4u

In summary, you made a mistake. You didn't understand how this credit card works.

The problem is all credit cards work this way.

It's not to try and catch you out. If you paid before the statement was issued you paid against the previous statement, not the latest statement.