virgin credit card minimum payment

YorkshireBoy

chattychappy wrote: »

The rules require that the balance goes down over time.

I think that was the 'intention' of the rules, rather than the rules themselves.

I thought the 'rule' was the minimum payment had to at least cover the interest charged on that statement...not the 'estimated interest' to be charged next statement (if you make the min payment on the due date and make no further transactions)?

However, even after the rule change, since PPI was added at statement date (at circa 79p/£100 of statemented balance) this was the reason many cardholders saw their balances creep up month on month.

Maybe the OP has PPI on their account?

chattychappy

I'll do the honours since normally you do the leg work in looking up T+Cs..

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

Most CCs seem to subscribe these days. Seems you were thinking of 129 and I was thinking of 131!

129. Subscribers should ensure that the minimum monthly repayment covers more than that month’s interest. This means that the minimum repayment will cover that month’s interest and a proportion of the balance outstanding from the previous month.
...
131.
The minimum payment amount on the account should be clearly shown. This amount should normally be sufficient to avoid negative amortisation over a period of 12 months (i.e. the sum of 12 minimum payments would exceed the sum of additional interest added to the account over the same 12 month period).