Virgin Card Interest Rate Increase :(

YorkshireBoy

evildalek wrote: »

...and their website is still advertising an APR of 15.9% which I think would be considered highly misleading under section 46 of the Consumer Credit Act so I'll be bringing a complaint against them before I transfer my balance.

The rate advertised on their website is a typical rate for new customers. Under current legislation/FSA guidance, what this means is that 66% of those accepted for the product have to be given this rate.

Perhaps you could explain, in laymans terms, why you think this is misleading under section 46?

Once accepted, and you have shown some account conduct, they use internal scoring (and ad-hoc credit searches) to manage your account. Primarily, this is risk-based and they (or rather the computer program, because they subsequently manually lowered the rate) clearly saw something they didn't like.

Without wishing to defend MBNA, I think you're wasting your time, and that of MBNA and the FSA/FOS if you do make a complaint about misleading advertising.

fear_and_loathing_in

I just rang Virgin as I wasn't happy about the increase from 21.9% to 29.75%, asked them if they could do anything about it?

"Certainly sir, you've been with us a while, we can drop it to 16.9%"

Still not the best rate, but better than 29.75%, so I suggest if it has happened to you, give them a call, they might change it.

ad44downey

The chancers. They fully realise most people won't notice or won't be prepared to phone up and challenge them. The government should outlaw this sort of usury. It's practically criminal.

lattenrost

i just called up virgin to discuss my interest rate hike from 15.9% to 29.9%!
after a friendly chat with the adviser (who had quick word with her manager), they offered to lower the increase to 20.9%. still fairly high, but certainly better than 29.9%.
i would encourage everybody to give them a quick call.

DeeEm

Just a quick update. Virgin responded to my complain letter by saying they sent a letter confirming my interest rate increase. This letter was never received by me, and I am self employed, I keep ALL financial papers, including the statement sent to me at the same time as this letter alledgedly was, confirming an expected interest amount due the following month at the standard rate.

In their response letter they advised they had enclosed a copy of this original letter, and lo and behold, NO COPY LETTER WAS ENCLOSED.

Their letter also said this was their final correspondence and they would not entertain any further discussions, go to the Ombudsman if you're not happy basically. So now, I can't even call them to say the letter wasn't enclosed.

Frankly, I don't believe it exists, funny how it has failed to appear on two occasions now, and that they hope I will go away and assume I must have received it. I know I did not.....I even keep the stupid letters confirming a change to the benefits on the card, why would I not keep this letter, and why would I wait until the interest had been applied before complaining about it.

Anyway, filled out FSA form and sent copies of all documents that I did receive. Will see what they say!