Virgin Credit Card: rate of interest 34.9%!

cashflow

My son has just shown me a letter he received from Virgin Money ( MBNA Visa ) in which he has been informed that the rate of interest that he pays on his credit card is increasing to 34.9% per annum from next month!
I then discovered that the current rate of interest that he pays is in excess of 27%.

I am appalled that these rates of interest exist in the U.K. and I wonder who is reponsible for condoning such outrageous rates of interest? If it is the FSA, I can only hope that they get their act together now, ( and clamp down on extornishist rates), partly as they are going to be 'strengthened' as a result of the Northern Rock fiasco.

CLAPTON

Not sure if you are serious but APRs in the twenties are common place and those in the thirties not exactly uncommon. Partly as an unintended consequence of the 'illegal penalties clamp down' and partly as a consequence of the general credit crunch.
Fortunately no-one is forced to borrow at these rates as if you pay in full each month then you pay no interest.

BenL

Tell your son to dump them and switch.

I got a Marbles card last month with a nice 12.9% rate and £41 quidco cashback.

They are trying to make their money back from people claiming fees and existing customers are the people who pay for it.

_Andy_

Whilst I agree it is a high rate, ultimately the agreement he took with Virgin was on a variable rate of interest, therefore I can't agree this is 'outrageous'.

Ivan_Konstantinov

BenL wrote: »

Tell your son to dump them and switch.

I got a Marbles card last month with a nice 12.9% rate and £41 quidco cashback.

on the marbles site it says no new customers?

BenL

Indeed it does, just checked.

I think they were just bought by barclaycard so they must have taken offence at MSE users getting £41 a pop for credit cards that we don't use.

lol, revenge

BenL

D'oh. I said Marbles.

I mean Goldfish, the other white and Orange card.

Offer still on.

Must be time to go home

cashflow

<P>( Yes, I was serious.....the card was issued to my son when he was a student.) Consequent to my posting earlier today, we have closed his account, and I have now also cancelled my Virgin credit card too (16.9%) - having been a customer for about seven years.</P>

CannyJock

I'd have cleared the balance, waited a month then phoned and asked them for a 0% deal and stoozed their money.

They won't miss your custom, but you could have made some money out of them

Paul_Herring

cashflow wrote: »

I wonder who is reponsible for condoning such outrageous rates of interest?

Clearly the customers who carry over balances and actually pay those rates.

Either pay off the balance so interest is not incurred, or ditch and switch to a card with a lower interest rate.

MABLE

cashflow wrote: »

<P>( Yes, I was serious.....the card was issued to my son when he was a student.) Consequent to my posting earlier today, we have closed his account, and I have now also cancelled my Virgin credit card too (16.9%) - having been a customer for about seven years.</P>

There is nothing in the terms and conditions to say you have to carry a balance over. You can still pay the balance off monthly. Also very short sited cancelling the card at 16.9%. You will now lose out on special promotional rates they offer existing customers.

Oh well thats the price of being a martyr.