Problems with Virgin/MBNA once I've paid the balance off!!

rachaelt_2

I paid my Virgin credit card off and was at £0 balance as of 20th February. I called Virgin on 21st Feb to cancel the account so I could cut the card up and I then followed it up in writing (I'm a bit like that!) - I also cancelled my direct debit with my bank as I had no intention of using the card again thus not needing to make any more payments.

I then received a letter dated 29th Feb saying that they had tried to take this month's dd and it had been declined by my bank, please make payment asap etc. I checked my account online (to double check that I didn't owe them any money) to find that they had now charged me a £12 default payment for a deffered payment that I didn't owe! Spoke to someone who 'wasn't authorised to make a refund', but would get a manager to call me back in 48 hours. Needless to say, I didn't receive a call, so I have just called them back to find that not only do they think I still owe them £12,m but they are also charging me £33 in interest for this month as they are insisting that I didn't close the account. They can refund the £12 default payment but the interest stands.

Is this correct? Surely I cannot incur interest on a £0 balance...please help! (apologies for the essay)

YorkshireBoy

Were you paying the card off at the end of a 0% introductory period? If so, the Virgin (as with all MBNA run cards) 0% rate ends on the statement date...not the payment due date.

Also, MBNA will claim the DD based on the statement balance, and will not take any interim payments you make into consideration UNLESS you notify them 7 working days in advance of the payment due date. If you check your DDI letter you'll see they inform you of this.

It's always a good idea not to be too hasty in cancelling DDI's because there are several other providers who operate in the same way as MBNA do. For that reason, it's best to wait until you receive confirmation that the account has been closed before cancelling DDI's.


DDI = Direct Debit Instruction.

rachaelt_2

My 0% discount rate was not due to end until end of March, I was paying off the card at the end of February so as to avoid paying at the higher rate the following month (my payments came out on the 27th of the month). Do I still owe them this money?? I am confused, as I am happy to pay what I owe, but only if I do actually owe it.

I was not told by the customer 'satisfaction' department on the 21st Feb that I should keep my dd active beyond that point and I confirmed with the lady I spoke to that my account was at £0 at the point of me making the call to cancel the card - this £33 interest has come completely out of the blue as even when I called on Monday to ask about the £12 deferred payment, was not told that I was also about to be billed for interest.

As I said, I'm happy to pay what I owe, but this feels like it will be a never ending series of calls back and forth to MBNA and their un'satisfactory' customer services as well as having a potential impact on my credit rating - which is more valuable to me than a £30 interest bill!

:mad:

skintstudent84

The exact same thing happened to me this month with Virign- I clear the balance, was sent a default bill for £12 which they refunded then sent one for £4.20 interest- I rang them up and the guy refunded it no problems at all- just keep going. I was lucky that the first person I spoke to was so reasonable.

YorkshireBoy

OK, I think what's happened here is they have removed the 0% rate because you 'broke' the T&C's by refusing them a DD collection. They've then backdated the interest to the date of that month's statement, as they say they will in the T&C's.

I think you'll have to try ringing again to explain what's happened. If you don't get anywhere you'll have to register a formal complaint. I'm sure I've seen reports of similar instances and seem to remember the fees/interest being cancelled.

rachaelt_2

Update: I spoke to a Manager at Virgin today and we concluded that the interest was in fact owing from 5th Feb to when I paid the balance on 20th Feb. However, when I asked if it was normal practice for their advisors not to inform the customer of a 'total' figure when that person wants to clear the account.....which is how I felt they had treated me....she actually said 'its up to them if they want to declare that'.

NickX

rachaelt wrote: »

My 0% discount rate was not due to end until end of March:mad:

interest was in fact owing from 5th Feb to when I paid the balance on 20th Feb.

If your 0% rate continued until end of March, then interest accrued between 5th Feb and 20th Feb should be zero.

I would advise you to clarify the exact end date for the 0% promotion. It is possible that they have charged you interest when they shouldn't by removing the 0% promtion when you closed the card down. If this is the case you are owed a refund.