Vanquis (watch out!)

cruzier

18 months ago I received a letter from a company called Vanquis offering me a credit card with an APR of 19.9%.

I decided to go for it and I was accepted with an initial limit of £500.

However, 18 months on and I have had the APR on my Vanquis card increase 4 times and now stands at 55%!!

In September this year I applied for a Halifax card to obtain their 0% interest free period. I was accepted and the first thing I did was rang Halifax to do a balance transfer to my vanquis card.

Guess what?... Vanquis was not on their list and the guy said its normally because these companies don't want you to be able to pay the balance off. So I then decided to use some of my wages which usually pays the mortgage to pay off my vanquis card and I paid my mortgage on my card so I still get the 0% of the balance.

So I rang Vanquis and asked them could I close my account if I pay my account in full? The lady said yes, so I paid with my debit card and paid £489. After I paid I asked if I would recieve confirmation that the account is closed, she then said that I had to wait until the 2nd October before I could close it due to the ongoing incurred interest.

A month later I rang them and confirmed that I only owed them £1.11 in interest so I paid that and asked to close my account, I was told I would have to wait until the 3rd November before I can cancel it. I don't hold much hope that they won't say 'you will have to wait another month'

So its going to have taken me over 2 months to close my account down!

I feel its just a reason to prolong and keep my account open and their staff have no idea of quality customer care or support.

Does anyone else have similar problems with Vanquis?

jamalfatty

All credit cards would work the same, this isnt just Vanquis being awkward I'm afraid.
If you carry a balance over from one month to next, you will then see whats called residual interest on the following statement regardless of if you paid balance in full, this is the interest that accrues from the date of your charging period beginning (usually the statement date) until the date you make your full payment.
Even if they could have closed your account, it wouldnt have been 'officially' closed until you received this next statement and paid it off

cruzier

Oh I see, but I closed my littlewoods on the day I paid my outstanding balance? I've had nothing from them since.

simongregson

jamalfatty wrote: »

All credit cards would work the same, this isnt just Vanquis being awkward I'm afraid.
If you carry a balance over from one month to next, you will then see whats called residual interest on the following statement regardless of if you paid balance in full, this is the interest that accrues from the date of your charging period beginning (usually the statement date) until the date you make your full payment.
Even if they could have closed your account, it wouldnt have been 'officially' closed until you received this next statement and paid it off

Surely they should be able to work out a settlement figure based upon the daily interest incurred though?

In actual fact being able to close your account by paying off any money due under the agreement, at any time, is one of your rights set out in the consumer credit act 1974.

The poster could make an overpayment, of say £2, to cover the interest. Then after the month is up phone to cancel the card, which will be slightly in credit, and ask them to return the extra as a cheque. This will cost them more in admin than the value of the cheque, serves them right for having such a silly policy in the first place!

inmypocketnottheirs

Hmm interesting.

I have always defended Vanquis, but only when the balance is paid in full, so no interest is incurred. Their customer service has been exemplary, friendly and above all UK based.

However, this month I have had a different experience. I have a £1750 limit, and I generally run quite a high balance as I travel to the US and book flights, car hire and hotels etc. So as soon as my statement arrives I either make an online payment or phone through with my debit card and clear in full. Generally on line payments arrive into the Vanquis account 4 days after payment and debit cards 2 days after.

So, last Monday 8th October I call Vanquis and pay via my debit card £1440, to clear the balance on the statement. For a couple of days the £1440 has been deducted from my available balance on my current account (as usual) then I notice on Thursday it has not been taken from my account and is now part of my available balance. So yesterday I then call Vanquis and ask why have they not taken the payment. I am given, what is frankly, a load of BS, about because of the large amount it has to go through security procedures before being credited to my account.

Anyone else had any similar experiences?

cruzier

May I ask what your APR is? Has your APR not increased like four times in a year?

I rang them two weeks ago and asked if my APR could be reviewed (which was currently at 45%) and said if they could not reduce it to a more managable rate I would close the account. Anyway I got a letter on thursday saying that after reviewing my account they were increasing the interest rate to 55% APR with effect from 1st November.

I rang up and spoke to a guy and he said I have had the account for 19 months and that I only missed one payment which was the first month (which was only due to me thinking they were setting up a direct debit).

So I feel there is no reason to hike it so much. Its gone from 19.9% to 55% in less than two years.

inmypocketnottheirs

cruzier wrote: »

May I ask what your APR is? Has your APR not increased like four times in a year?

TBH I don't worry about the rate as I don't pay any interest. I just use the card for the Visa credit facility. All because I had some problems a few years ago, and my credit file is only now getting straightened out. 1 more default off next June and I will be clean.

wayoflife

judge credit card like people, if it has a bad reputation (not bad as such but primarily a lender for the sub prime market)

then do not expect anything more of them.

I laughed at the title when I read it, its like posting something entitled:
"EX CONVICTS- watch out!"
sorry I dont mean to take the mick!

As far as the residual interest goes then they are prerfectly right to do this, every card works like this.

My advice is as follows:

Vanquis will want you to keep your card open. Ring them once the extra interest has been paid and go through to cancellations. Explain the situation and say that you want the interest back or you will close the card. Ad you have paid interest (and therefore apeal to them as they are making money from you) then they will want to keep you as a customer and will refund the money.

You will then be shown as a positive balance then you can spend the money and close tha card anyway, or keep it open.

I did have a similar problem, but was interest that wasnt supposed to be charged, due to a direct debit payment being delayed (at no fault of my own) I rang and they refunded the money.

I sugggest ringing them, and not on the 08 number if you need a geographical number then reply to this and ill post it.

Cheers

cruzier

Just spoken to Vanquis;

1. Refused to refund any interest
2. Refused to put me through to cancellations
3. Whilst I was asking why I could not be put through he said, okay your card has been cancelled.

4. End of call!

I've had such a wonderful experience with Vanquis... NOT!