Balance Transfer Fees – Misinformed by customer service?

joycopeland

Thanks for the advice, but my efforts have been fruitless. I rang three different departments within Virgin credit card system, who all advised that there is indeed a 2% balance transfer fee after the initial transfer on account openeing. I quoted your advice and was told to ring customer loyalty at MBNA, who again re-iterated that after the initial transfer everyone is charged 2% fee. So far I have found no-one within Virgin who will confirm nil balance transfer fee. Can anyone offer a dept or name to agree otherwise?

nadnad

Hey Den - I have checked and haven't been charged the 2% after all. If you're worried just ask the customer service person when you phone to activate it just to make sure - be prepared for a long wait though I was on hold for 20 mins plus.

Den

I will phone tomorrow to Virgin to activate my card... will let you all know.
Thakns for answers

Den

Keeping my promise, I would like to ensure everyone that there were NO charges to my account for balance transfer to credit card, and was promised today that there are no charges for SBT. Virgin CS and then MBNA CS were happy to confirm it.
Was refused credit limit increase prior activation.

WSO

Just followed the MSE Virgin link as in post #1 above as I wanted to by items on my Egg Blue card and transfer the balance to the Virgin card each month while putting the rest I would have paid into my ISA (effectively building up a stooze pot slowly).

However, just looked at the * by the 9 months at 0% p/a, and it says:-

* from the date the account is opened. There is a handling fee. See the summary box for full details.

Looking at the summary box:-

2% handling fee (min. £3, max. £50) for credit card cheques and balance transfers.

Now, as I understand the details on the Virgin website, they ARE going to charge the 2% if I sign up... has this changed recently because it goes against the advice given here as recently as last week?

Also, would the 9 months apply from account opening (read when they get the signed docs) or when the card is activated?

YorkshireBoy

websiteowner wrote:

has this changed recently because it goes against the advice given here as recently as last week?

Midnight last Friday night.

websiteowner wrote:

Also, would the 9 months apply from account opening (read when they get the signed docs) or when the card is activated?

I believe it's when they receive your signed credit agreement.

nik.gibson

I went into my local Abbey branch today to apply for the Balance Transfer card as recommended. They printed out the terms and conditions which clearly show that a fee (2% min £3 max £35) is payable. This seems to be contrary to the advice you posted that this was not applicable if you applied for the card via Abbey

YorkshireBoy

nik.gibson wrote:

I went into my local Abbey branch today to apply for the Balance Transfer card as recommended. They printed out the terms and conditions which clearly show that a fee (2% min £3 max £35) is payable. This seems to be contrary to the advice you posted that this was not applicable if you applied for the card via Abbey

Deals change all the time, and it is impossible for articles to be 100% accurate all the time. This is why you should always do your own research based on others' recommedations.

For example the max £35 fee you quote today from the branch may be out of date in itself, because the Abbey website shows it as being £50. However, I would "imagine" the fee charged would always be the one that was written on the credit agreement that you sign when applying (not an illustration they showed you at the branch) - unless their T&C's allow for notifying you of changes?

maurbwn

Hello,

New to this so apologies for any mistakes!

My expenditure has increased but I have had to cut my hours at work so less money coming in! I'm sure a lot of people know what I mean.

I was wondering if I could pay off say £3K of my mortgage, (currently owe £17k on 6.14£ SVR, mortgage lender won't give better rate as only 3 years to go) by transferring the balance to one of these 0% credit cards. Maybe I could get a couple? That way I wouldn't be paying 6.14% on 3-6K and would save hundreds of pounds?

Does anyone know if there could be any pitfalls in doing this please? My husband isn't so keen!

Grateful for any advice. Thanks, Maureen.

YorkshireBoy

maurbwn wrote:

Does anyone know if there could be any pitfalls in doing this please? My husband isn't so keen!

It's a non-starter I'm afraid.

You can pay £3K off your mortgage and your monthly payment will reduce (by how much I don't know - have you asked?). However, it's going to cost you around £90 a month to service a £3K CC debt making minimum 3% payments or £60 a month making 2% minimum payments.

You could apply for an MBNA (or MBNA branded) card which allows £5 minimum payments but this will only cover you for 9 (possibly 18) months of your 3 years. You could then pay the extra £55/85 each month off your mortgage. At the end of this 9 month term, you will need to find another provider to take on the £2,955 remaining debt - which is risky for you if your income is reducing and your outgoings are increasing as you have stated.

Some other thoughts...

* 0% deals might not be around at the end of this year, let alone in 3 years time.
* BT fees (2% max £50 on most) could/would/will be payable everytime you switch - possibly 4 to 6 switches needed.
* If your income has reduced and (by your own admission) your outgoings have increased, you might not pass lenders credit checks.
* Any problems in getting new/adequate 0% deals over the next 3 years may see you on 15.9% interest if you can't get a loan at say "typical" 7.9%. Either way you'll pay more than your 6.14% mortgage rate.