When is a BT for life not for life?

Pixie5740

Hi, this is my first post so please be gentle.

I took out a Virgin Money credit card quite some time ago to make use of their balance transfer for the life of the balance at a rate of 6.9%.

I seem to recall that sometime late last year I received a letter from Virgin Money saying they were going to change interest rates (i.e. hike them right up) but I had the option of opting out but it meant I wouldn't be able to make any more purchases with the card (didn't want to anyway) and when the balance was paid off my account would be closed. Fair enough I thought so I opted out of the interest rise.

Last month I changed banks and my Virgin Money direct debit came out my old account which I was closing and not my new account. Fair enough, my fault for not keeping a closer eye on things but made a debit card transaction the very same day the direct debit bounced. Virgin have now charged me two £12 fees, one for a returned direct debit and one late fee as the debit card transaction didn't credit until the following day.

Virgin have also removed my 6.9% balance transfer for life rate and are now charging me over £17%. Can they do this? Is a balance transfer for life really for life?

YorkshireBoy

Pixie5740 wrote: »

Can they do this?

Yes.

Is a balance transfer for life really for life?

Yes it is, providing you don't breach the T&Cs (as you did).

I'm sure that's not what you want to hear though.


EDIT: Here's the relevant condition...

3.4 If we do not receive the minimum payment when due, it does not clear or you go over your credit limit:

. your promotional rate will be withdrawn from the start of the statement period in which this happens;

and

. we will withdraw any promotional offers for which you are eligible.

JakeGreen

With credit cards you lose most of the promotional low (or zero) interest rates if you slip up.

This is always in the terms and conditions.

Pixie5740

Oh well I'd better get the balance paid off quick smart. I suppose it wouldn't do any harm to write to Virgin explaining the situation just on the off chance they take pity on me but I won't hold my breath

chattychappy

Pixie5740 wrote: »

Oh well I'd better get the balance paid off quick smart. I suppose it wouldn't do any harm to write to Virgin explaining the situation just on the off chance they take pity on me but I won't hold my breath

Just phone them and ask them nicely. You are by no means the first to run into trouble with failed DDs causing late payments causing loss of BT deals. People have reported having some success on their first offence.

Failing that, can you pay off the balance promptly? If not perhaps consider applying for a new card with a BT offer. (This slip up won't necessarily appear on your credit file, so it doesn't put the kibosh on things.)

Laura_Figel

Yes it is, providing you don't breach the T&Cs

Pixie5740

chattychappy wrote: »

Failing that, can you pay off the balance promptly? If not perhaps consider applying for a new card with a BT offer. (This slip up won't necessarily appear on your credit file, so it doesn't put the kibosh on things.)

Thankfully I can pay the balance off in about 3 months. I don't seem to be able to get credit these days as I sold my flat in Glasgow to move to Aberdeen just over a year ago and I've gone from employee to self-employed so lenders seem to see me as a bigger risk at the moment which is not helped by me making a late payment. What a silly sausage.

Pixie5740

I know this is an old thread now but I thought I'd post an update anyway.

I contacted Virgin Money who said the £24 of charges would remain on my account (boo) but that would revert my interest rate back to the promotional rate (yay). So I am pleased with that outcome.

chattychappy

Always nice to hear the outcome!