Best Balance Transfers Discussion Area

oosaboos

Hi
I set up a 0% balance transfer deal with virgin in january of this year. As I became ill and someone else was dealing with my finances I wasn't able to check my statements and therefore didn't realise I had been paying interest since april. I rang them this month and was informed 1st that the 0% was switched off because of a late payment; at which point I explained my predicament and that despite the min payment being £20 I always pay £100 per month. Then, after being transferred, was told the deal would be put back on and I would be refunded 4 months interest. When I asked why not all of the interest, I was told it was because I had left it too long to contact them. I said I would be contacting them in writing but first I'd like to know my rights. Can anyone help with this? Thanks so much.

Moggles_2

oosaboos wrote: »

I set up a 0% balance transfer deal with virgin in january of this year. As I became ill and someone else was dealing with my finances I wasn't able to check my statements and therefore didn't realise I had been paying interest since april. I rang them this month and was informed 1st that the 0% was switched off because of a late payment; at which point I explained my predicament and that despite the min payment being £20 I always pay £100 per month. Then, after being transferred, was told the deal would be put back on and I would be refunded 4 months interest. When I asked why not all of the interest, I was told it was because I had left it too long to contact them. I said I would be contacting them in writing but first I'd like to know my rights. Can anyone help with this?

This is consistent with what normally happens if (for whatever reason) you don't keep within the Ts & Cs of your credit agreement. If, having left things for 8 months, you've been charged 4 months interest, Virgin has met you half way. It is quite common for lenders to refuse a refund of any interest at all in these circumstances.

If you feel you have grounds for complaint against Virgin, I would request a copy of its complaints procedure. This sets out the time limits allowed for dealing with your complaint. The bank is also obliged to confirm the result of your complaint in writing.
You have right to take your complaint to the Financial Ombudsman if you are still not satisfied with the outcome.

JimmyTheWig

oosaboos wrote: »

first I'd like to know my rights.

From what you've said it doesn't sound like you have any rights here, harsh as it seems.
Their terms and conditions say that the 0% will be withdrawn if a payment is late.

I think all you can do is appeal to them to make a goodwill gesture and wipe all the interest.
But even if they don't and you are stuck with the 4 months interest I presume that you are better off than if you hadn't done the transfer?

Ryan_Taylor

I'm sure this has already been stated, but it you find a 0% offer, try to negotiate down to 0% with your current card before transferring balances. If you're in good standing, they should do this for you.

You're much better off keeping a long credit/account history with your current card. It will help your credit score.

Millie-Moo_4

Will this work how I want it to work?

I have two credit cards (different banks) - both owing between £2500 and £3000. I have offers from both of them right now for 0% on balance transfers. If I sent cheques from each card to pay off the balance on the other - am I going to end up with 0% interest for the period of the offer on the entire balance on each card...or would it depend on whether it was processed on exactly the same day?

I keep thinking I should do it - and I'll definately do one - but am I likely to get the full deal that I'm after here?

Help me out - my brain hurts!

Thanks.

molley

Millie-Moo wrote: »

Will this work how I want it to work?

I have two credit cards (different banks) - both owing between £2500 and £3000. I have offers from both of them right now for 0% on balance transfers. If I sent cheques from each card to pay off the balance on the other - am I going to end up with 0% interest for the period of the offer on the entire balance on each card...or would it depend on whether it was processed on exactly the same day?

I keep thinking I should do it - and I'll definately do one - but am I likely to get the full deal that I'm after here?

Help me out - my brain hurts!

Thanks.

Have you asked them if they will give you the 0% on the balance on their own card ? That would save any messing around . The way you are suggesting might not be considered as a BT ...but I'm not sure about that .

oosaboos

Moggles wrote: »

This is consistent with what normally happens if (for whatever reason) you don't keep within the Ts & Cs of your credit agreement. If, having left things for 8 months, you've been charged 4 months interest, Virgin has met you half way. It is quite common for lenders to refuse a refund of any interest at all in these circumstances.

If you feel you have grounds for complaint against Virgin, I would request a copy of its complaints procedure. This sets out the time limits allowed for dealing with your complaint. The bank is also obliged to confirm the result of your complaint in writing.
You have right to take your complaint to the Financial Ombudsman if you are still not satisfied with the outcome.

Thanks for this...I kind of suspected as much

JimmyTheWig

Millie-Moo wrote: »

Will this work how I want it to work?

I have two credit cards (different banks) - both owing between £2500 and £3000. I have offers from both of them right now for 0% on balance transfers. If I sent cheques from each card to pay off the balance on the other - am I going to end up with 0% interest for the period of the offer on the entire balance on each card...or would it depend on whether it was processed on exactly the same day?

I keep thinking I should do it - and I'll definately do one - but am I likely to get the full deal that I'm after here?

Good question. And quite a nice situation to be in, though not an easy answer.

I very much doubt that doing what you suggest will work. As you say, timing it right would be pretty much impossible.

The way to do it would be to transfer the balance from card A to card B (assuming there is enough spare credit on card B to take the full amount). Then when you get a statement through from card A to show that you owe nothing* (I believe the statement itself is important rather than just confirming you have a zero balance) you can transfer the full balance from card B to card A (assuming there is enough spare credit on card A to take the full amount).
Then the whole balance will be on card A at 0%.

Whether this is worth it depends on various factors...
The big problem is that it means paying a balance transfer fee on the amount currently on card A twice. What are the balance transfer fees involved?
In fact, it would probably be better to do that first transfer not on a 0%, if you could get it at card B's standard rate with no transfer fee. As the debt will only be there about a month the interest is likely to be smaller than the fee.
As I mentioned, it depends whether the cards have the credit limit to make it work.
I said to check your statement says you owe nothing*. This may well show residual interest. You can class that as meaning nothing, though you will then pay interest on this interest for the whole time you have the 0% deal in place. But the interest on this interest is likely to be less than the interest you will pay by leaving it another month.
It will also depend on what interest rates you are currently paying, how long the new 0% deals are for, how long you expect to take to pay off the debt, what you plan to do at the end of the 0% deal if the debt isn't cleared, etc.

Millie-Moo_4

Well, JimmytheWig got there just as I did too!

I phoned Mint & Barclaycard. Neither of them wanted to offer ANYTHING to keep me there, so I had to do something with the balance transfers.

Mint offered 0% until June 09 and NO TRANSFER FEE, so that was a no brainer! Have moved all my money from Barclaycard to Mint. The offer from Barclaycard expires at Christmas. It is for 0% until November 09, but with 2.5% transfer fee. This is still less than the interest I would be charged over that period, so I'm going to transfer it over at Christmas.

Barclaycard lady wasn't at all happy that I was using their 0% against them and stopped answering my questions!

Have made the call to Mint, so just have to wait until I get my nil statement and all will be well!

Thank you!!

Granite35

Hi Everyone,

I know this may sound obvious BUT, learn a valuable lesson from me in becoming too complacent! I have just decided to do a money makeover and was both horrified and astonished at the APR's I was paying (Marbles)......I think of myself as financially savvy, but what a mess my finances are in.

Ask yourself...what am I paying on credit cards now and PLEASE do something about it, as when you leave it for as long as I did, I could have been in a much better financial position to the one I am in now!

I go now to do a budget and plan which i will post in due course!!

Come on.......just do it!