Virgin credit card interest on late payment charge

genericname111 · 6 December 2017 at 11:00AM

Hello,
I have a quick question as I have spoken to Virgin on the phone to ask about charges on my credit card account- I was late with my payment last month, and thus I was charged
a) late payment charge-9£, b) interest charge-2.05£ which the lady on the phone explained is an interest on the late payment charge! (I was also charged normal interest).
I have never realised this can happen- is this a standard practice with other banks too? It seems little sketchy...

[Deleted User] · 6 December 2017 at 11:05AM

Yes - it's standard practice.

However, the £2.05 will not all relate to the late payment charge of £9.

bengalknights · 6 December 2017 at 11:31AM

Yes this is standard practice as the charge is still a amount that is payable.

Anthorn · 6 December 2017 at 11:49PM

Or to put it a different way: Charges are added to the balance which is then subject to interest.

However there is not a lot to stop you adding together the charge and the interest accrued by that charge and then complaining that the total charge is unfair. The question is whether it's worthwhile to do that for such a small amount of money.

Dobbibill · 7 December 2017 at 11:09PM

The interest will be due to the late payment making the interest free grace period on purchases invalid.

You have been charged interest on the amount borrowed for the length of borrowing.

Virgin credit card interest on late payment charge

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