Vanquis Billed Deffered Finance Charges - Causing Overlimit Charge

davidmartin_3

Hi All,

I have had a Vanquis credit card for a couple of months now, and for both month statements I have gone overnight and have had unknown charges put onto my account.
I took out the card to make a large purchase (almost to my £500 limit)

In May, I had spent almost to my limit (as expected as this is what I got the card for) which was fine, as I was about to make a reasonable (£130) payment on it.
On 18th, I checked my account online to find a £10.38 Billed Deffered Finance Charge, a £12 Overlimit Fee, and £13.05 Purchase Interest.
I check my account every couple of days, but these didn't show up until I got a text asking for £30.35 to be paid immediately on 17th, which I signed in and it said I was £30.35 overlimit and to pay immediately, so I paid the £130 I was going to anyway.

This month, again I was close to the limit.
I paid £400 on 16th, however I checked my account this evening and I have 85p Billed Deffered Finance Charges, £12 overlimit and £7.59 Purchase Interest.
These were not showing on my account this morning, and it states that these were charged on 16th.
I had an email this afternoon asking for my minimum payment of £27 to be payed by 11th next month.

What I don't understand is what these Billed Deffered Finance Charges are? (I also have a Luma Card, but I only get 1 purchase interest per month)
I phoned Vanquis and asked, but they told me that it is like purchase interest but not called that, but couldn't answer why I was being charged 2 lots of interest.

Secondly, I have been in control of my accounts, it is only the interest charges that have put me overlimit, but my interest hasn't been charged on the same day of each month. I have never set up a payment date, nor have I been made aware of the date that interest is added to my account.
I don't think that is fair, as it is only these charges that have put me overlimit, causing charges for overlimit and impacting negatively on a credit profile I am trying to build. I've had 2 overlimit charges, and especially this month, I already payed 80% of my balance in one, but because they have charged interest, and another unknown charge I've gone overlimit. And the dates I've been charged these charges are not consistent.

Also, my payment date doesn't coincide with my interest billing date. I would expect them to be on the same date? - Maybe I am wrong, but it would make sense for your interest to be billed on your payment date as it all gets paid in one?

I'll be calling them tomorrow, but I would like to know what these charges are if anyone here knows?
And also if anyone knows where I stand in regards to clearing my balance, but being charged for going overlimit on a balance I've paid.

Sorry for the long winded post, and thanks in advance for any help/advice offered.
Cheers

molerat

A few threads on the subject in this forum. It seems that "deferred finance charges" is interest on carried forward balance and "purchase interest" is interest on current purchases.

Payment / due date and billing date are not the same, due date is usually some time before the next bill is processed. You need to carefully read your statements to find the relevant important dates and ensure you pay in advance of the due date allowing for the payment to clear ....... plus carrying a balance on a Vanquis, or any sub prime card, is very expensive.

davidmartin_3

Thanks for your help.
I would pay at very least the minimum if I had any idea when my payment dates were! Ill try and find them out.

I know Vanquis and Luna are an expensive way to borrow, unfortunately I don't have a good enough credit file to have anything 'better' but hopefully over time that will change.
Since having credit cards, I've been accepted for a mobile phone contract when I couldn't before.
I'm paying them off as soon as I can. I only have £100 owing on my Vanquis and £140 on my Luna which I am pleased with. But the sooner they are zero the better!

SnowTiger

molerat wrote: »

A few threads on the subject in this forum. It seems that "deferred finance charges" is interest on carried forward balance and "purchase interest" is interest on current purchases.

Yes. Vanquis didn't charge interest on the previous statement because they didn't know the OP wouldn't pay it in full.

People often forget that, usually, if you don't pay your credit card bill in full every month you pay interest on purchases from the day they hit the system.

This is the norm.

What is, perhaps, unique about Vanquis is that they separate interest that as been deferred from that of the previous month. Other credit card companies simply lump it all together and call it interest.

SnowTiger

davidmartin wrote: »

Also, my payment date doesn't coincide with my interest billing date. I would expect them to be on the same date? - Maybe I am wrong, but it would make sense for your interest to be billed on your payment date as it all gets paid in one?

I don't pay interest on my credit cards, but I would expect interest to be applied to the account when the statement is produced.

The 'pay by' date is usually a week, or so, before that.

davidmartin_3

Thanks. If Vanquis explained it to me as you have, then it makes perfect sense!
Why can't the company who issue the charges explain as clearly what they are for as you just have!