MSE News: Vanquis Bank to pay customers £169m 27 February 2018 at 3:40PM edited 28 February 2018 at 12:44PM in Credit cards 45 replies 14.1K views

Former_MSE_Megan_F

Vanquis Bank is to pay 1.2 million customers about £169 million in compensation and a further fine of £1.9 million following an investigation into its credit card repayment add-on by the Financial Conduct Authority...

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'Vanquis Bank to pay customers almost £169 million in compensation'


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Rachaelg88xx

I recently cancelled my repayment add on because i realised it was charging interest! really glad this has been investigated...after 4 years I am hoping to receive compensation!

[Deleted User]

If used sensibly and your balance paid in full each month, then this wouldn't have happened

Rachaelg88xx

How rude!?
I am responsible with my card and I do not have a large balance. I always pay more than the minimim but cant always afford to pay the balance off

John-K_3

I can see banks just withdrawing from large sections of the market soon. Offer a service at a level that makes a profit and you end up being fined. Offer something at !!!8220;normal!!!8221;rates and go bust as people default.

So many sectors turn out to have never actually made mi eh. It looked rosy, but the risks were not being properly accounted for.

It would not be a surprise if we see banks doing what landlords now do, and turning away benefit claiminats, anyone with even a late payment, and simply not offering mortgages to anyone who is not squeaky clean.

boo_star

John-K wrote: »

I can see banks just withdrawing from large sections of the market soon. Offer a service at a level that makes a profit and you end up being fined. Offer something at !!!8220;normal!!!8221;rates and go bust as people default.

So many sectors turn out to have never actually made mi eh. It looked rosy, but the risks were not being properly accounted for.

It would not be a surprise if we see banks doing what landlords now do, and turning away benefit claiminats, anyone with even a late payment, and simply not offering mortgages to anyone who is not squeaky clean.

A tad overdramatic don't you think?

There was nothing wrong with the service that Vanquis were providing, it was simply that they should have explained to customers that interest would be applied to the monthly fee. Based on the article it would appear that they're in the process of reintroducing it now that the investigation is over and the only thing they did wrong was failing to disclose the interest.

As far as banks turning away people who are on benefits or who have late payments go, they can't do this for current accounts. They would at least have to offer these people a basic account (which aren't a whole lot different to normal current accounts.

For mortgages and other lending? If it isn't profitable to lend to certain customers they won't, which is no different to the way it is today and has basically been forever.

poshlady40

Please could you let me know how you apply for refund i have had a card for a long time with this company

[Deleted User]

Vanquis will be in touch with you if you're impacted.

samcov72

I have had this cover on my card since I had it, I had no idea I was being charged interest until a few months ago when I cancelled the cover. I had a couple of payment holidays over the years so hope this doesn't stop me getting any compensation, I am sure they earned more from me in interest than my payment holidays cost!!

dazzaofdagenham

I’ve had a Vanquis card for about 6 years....I think in the first year I had this but as I’ve always kept a fairly low outstanding balance from month to month I’ve paid minimal interest.

Would be interested in any refund....current balance is 25 pounds, s9 I hope this refund doesn’t put me in credit.

Amy368

Hi, I has a Vanquis card and definitely paid ROP. I ended up defaulting and the card is now paid off via a debt agency. Am I entitled to anything or should I just leave it? Thanks