Advice please. Virgin charging interest although balance is clear.

carolt2

Hi,
I have just finished paying off my virgin card.
I have just checked my next statement online and it shows that I have been charged £3.41 in interest.
I dont understand why. I have looked through the t&C but cant find anything about still charging interest on a clear balance.

I was wonering if it has anything to do with the balance transfer i did. BT 0% runs out in june.
I was planning on telephoning them but billing enquiries not open til tomorrow.
Can they do this? I want to cancel the card.

Any advice would be appreciated.

enigmam

It's the interest for the balance you had from the day the statement was produced to the day you paid off the balance. I think.

lisyloo

I think enigmam is right.
The interest on your last statement only includes up to your statement date, so if there was a gap between that and your payment being cleared then this will be the extra.

This is a common problem and the only way to get round it is to overpay by enough to cover the extra.

YorkshireBoy

With your 0% on BT's not due to expire until June, the only way you've incurred interest is either...

1. You paid late and have had the 0% rate withdrawn, or

2. You've made some purchases after you BT'd a debt to the card, or

3. You already had a purchase balance at the time you made the BT.

As lisyloo says, overpay the balance slightly (say £10 or so) and they'll refund any credit balance left on the card when you close the account.

mrsplinter

YorkshireBoy wrote: »

With your 0% on BT's not due to expire until June, the only way you've incurred interest is either...

1. You paid late and have had the 0% rate withdrawn, or

2. You've made some purchases after you BT'd a debt to the card, or

3. You already had a purchase balance at the time you made the BT.

As lisyloo says, overpay the balance slightly (say £10 or so) and they'll refund any credit balance left on the card when you close the account.

Don't some cards also charge interest on the balance transfer fee? I know Egg do.

YorkshireBoy

mrsplinter wrote: »

Don't some cards also charge interest on the balance transfer fee? I know Egg do.

Do, or did?

Someone posted recently that Egg had now ceased that practice.

MBNA, who run the OP's Virgin card, do not charge interest on BT fees for 0% offers.

carolt2

enigmam wrote: »

It's the interest for the balance you had from the day the statement was produced to the day you paid off the balance. I think.

Thank you for all for the replies.

Enigmam i think your right on this. I brainwave came to me whilst at work today.
I made payment when last statement arrived and then I finished paying the balance off in between statements so am assuming the interest is from time the last statement was genetarted to when the balance was cleared.
:beer:

jamalfatty

YorkshireBoy wrote: »

Do, or did?

Someone posted recently that Egg had now ceased that practice.

MBNA, who run the OP's Virgin card, do not charge interest on their BT fees.

Not strictly true this, they do charge interest but at same rate as the BT, so in majority of cases it is 0%, if you get a promotional rate of anything other than 0% though you'll be charged on fee at that rate.
However, even if this happened, would only be for one month as MBNA collect full amount of fee in first minimum payment after a BT

YorkshireBoy

jamalfatty wrote: »

Not strictly true this

Thanks for that jamalfatty, I had 0% (and stoozing with fee-free BT's) in mind.

I've now corrected my earlier post.