Why are Vanquis charging me £22.74 on a outstanding balance of £65?

J4M13

Re. redux, I agreed with you in my first response, yes I should of cleared the full amount to avoid interest chargers but why do you keep needing to reiterate your point I don't know. My issue is with Vanquis procedures, not how credit cards operate.

Re. Peaceful waters, if you think any business isn't out to maximise profits, especially financial services then your just being naive, there have been enough scandals in the finance sector recently to justify my skepticism.

If you'd like some further reading? Just search Consumer Action Group Vanquis....Billed-Deferred-Interest-Charge (i can't post a link) where they discuss Vanquis's policy being wrongly implemented and the companies response to customer inquires, I'd consider this typical. If they hadn't questioned the fee would Vanquis return the money once they had realised their error? Of course not or at least not until they were told to.

Banks and other financial services have and always will seek to make as much money as possible, their only priority is profit, customers are nothing more than a means to an end.

The point is now moot anyway, the balance has been cleared and the account will be closed. I hope this is an end to it. Unless either of you just has to have the last word?.........

CLAPTON

if vanquis is your only credit card the I would suggest you keep it open but use it to your advantage to build a good credit rating
i.e.
use it regularly but always pay in full (preferably by direct debit to avoid ever forgetting)
this will help build a credit rating so you can apply for a CC with benefits in the future

meer53

J4M13 wrote: »

Re. redux, I agreed with you in my first response, yes I should of cleared the full amount to avoid interest chargers but why do you keep needing to reiterate your point I don't know. My issue is with Vanquis procedures, not how credit cards operate.

Re. Peaceful waters, if you think any business isn't out to maximise profits, especially financial services then your just being naive, there have been enough scandals in the finance sector recently to justify my skepticism.

If you'd like some further reading? Just search Consumer Action Group Vanquis....Billed-Deferred-Interest-Charge (i can't post a link) where they discuss Vanquis's policy being wrongly implemented and the companies response to customer inquires, I'd consider this typical. If they hadn't questioned the fee would Vanquis return the money once they had realised their error? Of course not or at least not until they were told to.

Banks and other financial services have and always will seek to make as much money as possible, their only priority is profit, customers are nothing more than a means to an end.

The point is now moot anyway, the balance has been cleared and the account will be closed. I hope this is an end to it. Unless either of you just has to have the last word?.........

Correct, and your point is ?

PeacefulWaters

J4M13 wrote: »

Re. Peaceful waters, if you think any business isn't out to maximise profits, especially financial services then your just being naive, there have been enough scandals in the finance sector recently to justify my skepticism.

I'm not the naive one in this thread.

If you'd like some further reading? Just search Consumer Action Group Vanquis....Billed-Deferred-Interest-Charge (i can't post a link) where they discuss Vanquis's policy being wrongly implemented and the companies response to customer inquires, I'd consider this typical. If they hadn't questioned the fee would Vanquis return the money once they had realised their error? Of course not or at least not until they were told to.

The thing is, your card company works the same way as just about every other credit card company for the situation described in your opening thread.

Banks and other financial services have and always will seek to make as much money as possible, their only priority is profit, customers are nothing more than a means to an end.

As is the same with every profit making company.

The point is now moot anyway, the balance has been cleared and the account will be closed. I hope this is an end to it. Unless either of you just has to have the last word?.........

Well I feel the need to respond to your points, yes.

redux

J4M13 wrote: »

Re. redux, I agreed with you in my first response, yes I should of cleared the full amount to avoid interest chargers but why do you keep needing to reiterate your point I don't know. My issue is with Vanquis procedures, not how credit cards operate.

You still seemed to be saying that Vanquis practice is different from other cards.

It isn't.

Chrysalis

My view of credit for the vulnerable is different to what the media portrayed.

The main reason interest rates have been high for payday loans is that the cheaper companies wont touch those customers, so the result of payday loan companies been shutdown is no credit rather than cheaper credit. Now one can argue people shouldnt borrow money, buts thats easier said than done, the real world isnt simple, and credit makes the world go round, large companies work on debt, I know wealthy people who use credit cards every month because it eases cashflow, manchester united was purchased entirely with debt.

A real solution would be to enforce cheap credit as a right for everyone, but that would never happen as the banks would throw a fit. So instead these payday companies are been made out to be evil when they just providing a service, the interest rates are high when looking at APR but the loans are designed to be short term which when paid back as expected the levels of interest are comparable to long term loans.

I find it funny as well there is a 100% cap, when I had a loan of lloyds tsb 10 years ago, I paid back over 200% of the loan, and thats to a reputable bank. It was 39.9% apr over 5 years.

PeacefulWaters

Chrysalis wrote: »

My view of credit for the vulnerable is different to what the media portrayed.

Having read the rest of your post, your view of credit for the "vulnerable" seems somewhere between off the wall and complete insanity. I'll let others make their own call.

For context, a Vanquis credit card is not a product for the vulnerable.

The main reason interest rates have been high for payday loans is that the cheaper companies wont touch those customers

This isn't true. Payday loans, on the whole, are advanced to credit worthy people at high rates over short time periods. The rate is high because the time period is short. Indeed, when you compare the rates on payday loans to an authorised bank overdraft's mix of interest and fees the costs are fairly similar.

While we will find examples of payday loans being misused (or mis advanced) on these pages these are dwarfed by "loan before payday to employed" advances.

so the result of payday loan companies been shutdown is no credit rather than cheaper credit.

Some have been shut down, many remain. In the same way many banks have tightened their lending criteria compared to where we were a few years ago.

Now one can argue people shouldnt borrow money, buts thats easier said than done, the real world isnt simple, and credit makes the world go round, large companies work on debt, I know wealthy people who use credit cards every month because it eases cashflow, manchester united was purchased entirely with debt.

There is a big difference between giving a credit-worthy billionaire a mortgage on Old Trafford and lending £200 to a somebody who repeatedly demonstrates an inability to make ends meet.

Equally, there is a huge difference to giving somebody in a job a payday loan and giving somebody without work a payday loan.

A real solution would be to enforce cheap credit as a right for everyone, but that would never happen as the banks would throw a fit.

I am still pretty comfortable with the concept of giving a lender the choice of who to lend to. After all, they stand to lose the most if they get it wrong. The idea of forcing banks to lend to anybody including those they can demonstrate will never repay a penny is utterly ridiculous. So in no sensible world is it a "real solution". It's a recipe for economic disaster well beyond the scope of Credit Crunch, bank bailouts and austerity.

So instead these payday companies are been made out to be evil when they just providing a service, the interest rates are high when looking at APR but the loans are designed to be short term which when paid back as expected the levels of interest are comparable to long term loans.

You are pretty close to spot on here. Which is bizarre given your early sentences. While my instincts around intervention by the state are minimalist, i do think a 48 hour cooling off period for payday loans where the money can't be released to the borrow and requires a proactive click or call after 48 hours would be a good thing for the country.

I find it funny as well there is a 100% cap, when I had a loan of lloyds tsb 10 years ago, I paid back over 200% of the loan, and thats to a reputable bank. It was 39.9% apr over 5 years.

What 100% cap? Different lenders have different lending criteria for different customer groups.

However, what has all this got to do with charging interest on a credit card?

planteria

overly harsh, but true from SnowTiger..

and J4M13 has said that they have other credit cards. fwiw i wouldn't have suggested taking a Vanquis card in that circumstance. a sub-prime card that i wouldn't take unless it's the only option available. one of my friends is just closing hers, having managed to get a Barclaycard to use instead--after a few months of 'spend&pay' on Vanquis and CapOne.

as Deleted User suggests, i would close it.

have you now cleared the balance in full J4M13? if not, do so asap.

and chalk this up to learning how credit cards work, and play the system to your advantage from now onwards:)

pvt

Chrysalis wrote: »

I find it funny as well there is a 100% cap, when I had a loan of lloyds tsb 10 years ago, I paid back over 200% of the loan, and thats to a reputable bank. It was 39.9% apr over 5 years.

You're confusing what you paid back with what interest you paid. You always have to pay 100% of the loan back, even if the interest rate is 0%.

In your case, for a loan at 40% APR over 60 months, you would have repaid 232% of the original amount, so a total of 132% total interest.

msallen

J4M13 wrote: »

The point is now moot anyway, the balance has been cleared and the account will be closed. I hope this is an end to it. Unless either of you just has to have the last word?.........

Just a heads up... As you don't seem too sure how (all) credit cards operate. If you have now settled in full, but didn't last month, then there will still trailing interest to pay next month. It won't be much, but it will be there.

Take that how want - I shan't be replying again whether you throw your toys out of the pram or not, but you have been warned about it now!