What the hell is going on with Virgin credit card?

Gemmzie

ZTD wrote: »

That's interesting...

I read somewhere that when banks refuse to lend, it becomes a recession. When people refuse to borrow, then it becomes a depression.

That'll not be fun...

The article refers to it as a depression.

I do think a lot of it's panic though - don't have credit :eek: store cards are evil :eek: . Both of which are actually not true in a lot of cases :rolleyes:

jeanmd

Hi, it seems Virgin are increasing their interest rates on credit cards.:mad:

We got a letter this morning saying it was increasing to 29.2%.
we use the card well and pay on time.
:mad:
The only thing we've done recently is set up a direct debit as Martin suggested.

We have phoned them and they say it's the bank thats put up the rate, but virgin very nicely:rolleyes: lowered it back to normal.

They have also increased minimum payment to 5% or £10

Please Phone them!!!!!!!!!!

Can someone contact Martin and ask him to find out why this is happening. Sorry I don't know how.

talc

I paid MBNA a day late in January, and they immediately upped my APR from 20.90% to 34.90%. I complained on two occasions and was given the brush off. They told me they could do what they wanted basically. I told their customer services they are trying to bankrupt people, and they may as well make the APR 134.90%. Managed to borrow the £3.50k I owe them, so I can pay them off. Will have great pleasure in telling them to stick the card where the sun doesn't shine.
Be warned MBNA are vultures :mad:.

LYNSEY2008

OMG................
I am with mbna and i already need help, but now and deffo scared

Gemmzie

It's ironic really - they put the interest rates up to make more money but surely the amount of people that actually end up being pushed into DMP/IVA/bankruptcy situations means they lose more overall?

mummytofour

Yes well MBNA own them what more do I need to say? We have MBNA and when the put our APR up I went on a DMP... I borrowed the money and I WILL pay it back but when the keep charnging the goal posts there is not much I could do, I didnt have anymore money to give them. The thing its now they get way less than before they put up the ARP so they loose out in the long run,

TeetersOnHeels

Having got my letter from Virgin today with increased interest and a 5% min payment, a dmp is now a very real prospect. I had been managing to keep things afloat switching utilities and doing a spending diary, but this has now just blown everything out of the water...Totally agree with previous posters, they've ended up pushing people into a corner, but now it'll take them twice as long to get their money back from me....

ZTD

Gemmzie wrote: »

It's ironic really - they put the interest rates up to make more money but surely the amount of people that actually end up being pushed into DMP/IVA/bankruptcy situations means they lose more overall?

My theory is that if they go in hard while there still is credit to be gotten, their customers will borrow from someone else, and that someone else will suffer more of the bankruptcies.

Gemmzie

ZTD wrote: »

My theory is that if they go in hard while there still is credit to be gotten, their customers will borrow from someone else, and that someone else will suffer more of the bankruptcies.

I guess so, but that's not looking to last too long, passing the buck.

ZTD

Gemmzie wrote: »

I guess so, but that's not looking to last too long, passing the buck.

It'll not last long, because they all eventually will try it. Credit is starting to tighten. Be interesting to see how the Government tries to loosen it.

By the Law of Unintended Consequences, they'll make the problem worse - but that's the nature of Government...