Late fees from Virgin Money (MBNA Europe)

samaryd

Hi everyone

My first post - I was so angry I had to let you all know!

I have a number of debts that last year, after a bout of illness that meant I had to leave my well-paid job, I fell behind with. I was in the process of setting up an IVA with CCCS. However, in November 2011 I got a new job and was able to resume my payments. I write to all my creditors to offer them what I had previously been paying plus 10%, and to the best of my knowledge they all accepted. I set the payments to leave my bank account by standing order on the 1st of each month, starting on 1 Jan 2012, and informed all my creditors of this.

Last month, I noticed that on each of my credit card statements from Virgin Money, I had been charged a £12 late fee because the statement says they want payment by 24th of each month. Clearly I've been paying as my payments are received on each statement, but they're still charging the £12.

I wrote to them last month to complain and they basically said 'tough luck - we never said we'd accept you paying on 1st'. They knew I was in financial difficulties last year and they knew I'd be paying regularly. On my statement, it says that my 'account is withdrawn - please don't use the card' so I have no benefit from the card (not that I want to use it) and yet they refuse to change the statement date or refund the late fees.

I am really cross about this - I am obviously doing what I can to get myself out of difficulties and all my other creditors are fine with this arrangement.

Am I being unreasonable?

Tixy

They are simply following the terms & conditions of the account.

Statements showing all transactions and the due date for payment are the primary way a credit card company communicates with you. They've presumably sent you a number of statements with late charges on and the payment due date on so would have presumed you were aware of the charges.

With Virgin/mbna quite a lot of people find that phoning them, apologising and accepting you have made an error and agree to set up a direct debit means that they will agree to refund charges. This may be worth a try, although if you have made a formal complaint it may be too late for them to use their discretion in such a way.

dzug1

Presumably the payments you made on the 1st of each month were taken as being those due on the previous 24th and hence were late

samaryd

One phone call to a nice lady at the end of the 'are you having financial troubles' phone line, and she offered to change the statement date immediately. Shame the 3 letters I sent them didn't elicit the same response. Oh well.