News: Vanquis Reforming Credit Agreements

T-G-C

Vanquis have released an official email, detailing some changes being made in July to their credit card agreement. Some of these changes tend to favor the customer, which is nice to see.

1. The cash interest rate will be abolished. You will now be charged at the purchase interest rate instead. The purchase rate could be renamed to incorporate both together. The cash fee is not affected and the base rate (now purchases and cash) will not increase from this change.

2. The minimum payment will be higher each month, in an effort to reduce the amount of interest paid and clear outstanding balances faster. Payment arrangements will not be affected. 3% if the interest rates you pay are from tiers C to H (34.95% - 79.93%); or
2.5% if the interest rates you pay are from tiers A to B2 (19.94% - 29.95%).

3. A fee for an additional cardholder will be removed from the credit agreement, irrespective of whether the charge is currently 0.00 or higher.

4. Changes made to their rights, for disabling your credit card; refusing to authorize a transaction or terminating your credit agreement. If over a 36 month period you have owed Vanquis more than £200 and over that period you have repaid less of the principal part of your account balance than you have paid in interest and fees and you are unable to increase your payments, they may stop you using your credit card.

5. GDPR incorporation and other legal additions, including the new address for the FCA. The SAR is now 0.00 but must be requested in writing - they reserve the right to request ID.

There are a few other little things I've not included, but Vanquis customers should have or will receive an email with this information soon.

What do you think of these changes?

Let's not put any hatred comments here against Vanquis, we all know they are subprime and we all know the interest rates, but it's important to remember that they can, when used correctly, be a lifeline for those who won't be accepted by snooty mainstream providers offering 36 months 0% to their select clientele.

[Deleted User]

All pretty standard.

Not sure about insisting SARs are made in writing though. I would expect that to be challenged.

T-G-C

Deleted_User wrote: »

All pretty standard.

Not sure about insisting SARs are made in writing though. I would expect that to be challenged.

I did read somewhere that companies should make a reasonable effort to make the SAR available through electronic means.

I have no clue as to whether this is enshrined by law. I would imagine this is a popular tactic now, used by companies like National Hunter for example to deter SARs on the basis of having to physically post the request to them.

SnowTiger

T-G-C wrote: »

2. The minimum payment will be higher each month, in an effort to reduce the amount of interest paid and clear outstanding balances faster. Payment arrangements will not be affected. 3% if the interest rates you pay are from tiers C to H (34.95% - 79.93%); or
2.5% if the interest rates you pay are from tiers A to B2 (19.94% - 29.95%).

New terms here.

From the old terms:

2.3% of the remaining balance owing on your Account as at the statement date; or

4.5.2 if your APR is from Tier A), (i) 3.5% of the balance owing on your Account as at the statement date and (ii) any amount by which your Account is in arrears under paragraph 4.7 below;

if your APR is from any of Tiers B1) to F), (i) 4.5% of the balance owing on your Account as at the statement date and (ii) any amount by which your Account is in arrears under paragraph 4.7 below;

if your APR is from Tier G or Tier H), (i) 5.0% of the balance owing on your Account as at the statement date and (ii) any amount by which your Account is in arrears under paragraph 4.7 below; or

4.5.3 £5.

Presumably, everyone is on tier A to H, so no one will be paying the 2.3% minimum mentioned in the first line from the quote.

Minimum payments are currently in the 3.5% to 5% range.

That will drop to 2.5% or 3%.

What is increasing is the monthly minimum payment, from £5 to £10.

SnowTiger

T-G-C wrote: »

4. Changes made to their rights, for disabling your credit card; refusing to authorize a transaction or terminating your credit agreement. If over a 36 month period you have owed Vanquis more than £200 and over that period you have repaid less of the principal part of your account balance than you have paid in interest and fees and you are unable to increase your payments, they may stop you using your credit card.

IIRC the idea that borrows shouldn't pay back more than twice what they borrowed was mooted.

I guess this update from Vanquis means they will review accounts that fall in to that sort of category every three years.

A gold star to show the FCA when they next come knocking?

boo_star

They!!!8217;re making the purchase and cash interest the same? When people are paying up to 79.9% APR on purchases, the least you can do it not take the mick and slap an extra 10% on cash withdrawals.

T-G-C

boo_star wrote: »

They!!!8217;re making the purchase and cash interest the same? When people are paying up to 79.9% APR on purchases, the least you can do it not take the mick and slap an extra 10% on cash withdrawals.

I can’t see how anyone would be on the highest tier of interest, in response to your example.

I literally had a blank (NULL) credit file, at the age of 18, as well as being a student (not employed) and was still offered 59.9% as opposed to 79.9% APR.

You would have to have a complete and utter diabolical credit file to be given no other option other than a 79.9% APR card with Vanquis. In which a case, I don’t blame them for charging that much, as someone with a complete and utter diabolical credit file is a huge liability and part of the very reason that we have such extortionate rates in the first place on sub-prime cards.

Regardless of whether they should or shouldn’t have charged 10% extra for cash in the past, we have to look at this positively and that Vanquis have finally taken a step in the right direction with this change. It’s much better news to everyone who uses Vanquis than an interest rate rise or other negative implementation.

Provident Finance / Vanquis are not the monsters, it is the small minority of irresponsible people who create their bad reputation by taking on credit they can’t afford and then scream blue murder when they take collection actions against them or have interest added every month, which is being charged at such high rates for the very reason they’re carrying a substantial balance in the first place.

Vanquis help people who need to build their credit ratIng. If people want a credit card with little or no interest then MBNA and all the other top lenders are there for that purpose. Most people who aren’t even in a position to receive low interest seem to be the ones who expect it the most. I see all these people on Facebook slagging off Capital One, calling them con artists and thieves. The only thieves are the people who willingly spend money that isn’t theirs and then can’t or won’t pay it back.

Dandytf

Are all Vanquis group cards effected e.g.Chrome
Haven't found the time to log on as I've been reading latest Aqua terms- interest linked to Boe base rate etc...
Maybe card providers are preparing for upward base rate path