Help - charged interest & a fee for going over limit!

Harry_McGarry

I'm sure I'm not the first to do this, but any advice will be gratefully received before I contact Virgin.

Editted : Sorry, should also point out that I had a 12 month interest free offer on joining.

A couple of months ago I opened a Virgin cc account and made a balance transfer of £3500. My limit was £4000 and I have made a few other purchases on it since then. My statement now says that last month I went over the limit by approx £21 and I have been charged a fee of £12 for doing so. I also have to pay interest of £55.35 and it says that the estimated interest for the next statement will be £47.67.

Firstly, I'm pretty annoyed as I always thought that a cc had a limit and a purchase would be rejected if you tried to go over your limit. Maybe times have changed and I have been caught out? But now, will I have to pay interest every month? Am I in breach of my terms and conditions? I know the first point of call is to contact them but I would appreciate some advice before I do this to ensure I limit the damage.

Thanks.

CheeseCat

Have a look on the back of your statement - I have an Abbey card so my card is probably similar in conditions to yours as both Abbey and Virgin credit cards are run by MBNA.

On the back of my Abbey statement it says (under the header "Interest Charging Information"):

"Estimated interest... ...is for guidance only and will not be accurate for example if you make further transactions, you incur fees, your promotional interest period ends, your payment due date changes, or your interest rates change"

I think I have also read elsewhere that if you go over your limit and incur charges that any promotional rates (so your 0%) no longer stands.

maltesedog

The banks always find their ways and means to impose charges!

I doubt what's the use of the credit limit, if the card actually allows you to purchase more than the limit. Where is the security!!!!

benf90

maltesedog wrote: »

The banks always find their ways and means to impose charges!

I doubt what's the use of the credit limit, if the card actually allows you to purchase more than the limit. Where is the security!!!!

For the OP, yes times have changed and credit card companies put all the emphasis on people to manage their own accounts.

Most cards will allow you to go a certain percentage over the credit limit. As maltesedog says, it allows the credit card companies to make extra money through charges.

But, the OP has made three mistakes that have turned out to be expensive mistakes.

1. They made purchases on a card used for a balance transfer offer.
2. They presumed the credit card company would decline a transaction if it takes them over the limit.
3. Not read the T&Cs (or not paid close enough attention to them).

In the T&Cs it will state the charge for going overlimit. There wouldn't be a charge listed if it wasn't possible to go over the limit.

Please don't take this post in the wrong way, as I'm not having a go. There's certainly plenty of other people that make exactly the same mistakes and it's what credit card companies hope will happen when they entice a new customer with an offer.

Unfortunately, the T&Cs will also state that if the account goes overlimit or a payment is missed etc then they will remove the introductory offer on the account and start charging interest.

So, it is likely that interest is now accruing on a daily basis and will be charged each month.

There's no harm in phoning them to see if the intro rate can be reinstated. I don't hold out much hope as they're now due to make money from you but you never know I suppose.

Harry_McGarry

Thanks for all the feedback. I contacted them and they confirmed that the 0% promotional offer had been withdrawn because I exceeded the limit (by a mere £20). I was put through to the 'loyalty' department where I was told that they could do nothing to reinstate the 0%. I asked if I could appeal the decision - she went off to talk to her manager and came back to say that, just this once, they would reinstate the 0% but it mustn't happen again. So I am suitably chastised and repentent!

I realise this was my mistake but I do feel the banks are making people jump through hoops and setting them up to break the Ts & Cs. I guess I have learnt my lesson and won't venture into one of these deals again.

YorkshireBoy

Harry_McGarry wrote: »

I guess I have learnt my lesson and won't venture into one of these deals again.

Or rather...

"and I can now (more) safely venture into one of these deals again"?

PROLIANT

maltesedog wrote: »

The banks always find their ways and means to impose charges!

I doubt what's the use of the credit limit, if the card actually allows you to purchase more than the limit. Where is the security!!!!

Visa cards have what is called a "floor limit" as do MasterCard, if the transaction is under the retailers Visa or MasterCard auth limit then it will go through with out checking available credit etc, I always leave a little fat on my limit say £40 or £50 just in case, never went over yet.

MABLE

Harry_McGarry wrote: »

Thanks for all the feedback. I contacted them and they confirmed that the 0% promotional offer had been withdrawn because I exceeded the limit (by a mere £20). I was put through to the 'loyalty' department where I was told that they could do nothing to reinstate the 0%. I asked if I could appeal the decision - she went off to talk to her manager and came back to say that, just this once, they would reinstate the 0% but it mustn't happen again. So I am suitably chastised and repentent!

I realise this was my mistake but I do feel the banks are making people jump through hoops and setting them up to break the Ts & Cs. I guess I have learnt my lesson and won't venture into one of these deals again.

These deals are good. Do not blame the credit card company for your own stupidity.

NickX

MABLE wrote: »

These deals are good. Do not blame the credit card company for your own stupidity.

Harsh as ever there Mable. However, I think the point for the OP is not to say "Don't go for the deals again" but rather "Manage the deals more carefully" and you will reap the benefits. The deals are good and have proved excellent value to many stoozers.

Linzii_2

Tesco CREDIT CARD have applied a charge of £12 for allowing me to go over limit, i had no idea i had and that credit cards allow you to do so and i had no idea that they would charge until i got my statement (although i did receive a letter and paid the over limit back straight away, this was not a large amount by any means!!!). In the past i have always found that if you unknowingly go over the card automatically does not allow payment! I am disgusted and very angry IS THIS LEGAL, CAN BANKING OMBUDSMAN HELP, DOES ANYONE KNOW?

jonnyb

MABLE wrote: »

These deals are good. Do not blame the credit card company for your own stupidity.

Flippin heck Mable. Don't pull any punches.

Another few lambs to the slaughter.