New minimum payment scam?
Old_Codger
Posts: 11 Forumite
in Credit cards
Hi, I have a Vanquis card that I make minimum payment plus a bit more every month. This month due to my wifes hospitalisation I overlooked the payment date.
I have been in a text conversation with an 'advisor' who says she is trying to 'help' me as I was late in paying, only a day and payed extra. During the course of the conversation she informed me that my minimum payment from now on would be £91 a month, its currently £68 and reducing every month as I clear the amount owing.
Is this even legal ? and will make budgeting every month difficult, allegedly it is to reduce the amount owing more quickly, Barclaycard do the same thing but balance never seems to come down.
I have been in a text conversation with an 'advisor' who says she is trying to 'help' me as I was late in paying, only a day and payed extra. During the course of the conversation she informed me that my minimum payment from now on would be £91 a month, its currently £68 and reducing every month as I clear the amount owing.
Is this even legal ? and will make budgeting every month difficult, allegedly it is to reduce the amount owing more quickly, Barclaycard do the same thing but balance never seems to come down.
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Comments
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I think you may have misunderstood the meaning of the word 'scam'.
There have been recent changes in minimum payments which you may have seen in the NoV they sent you.0 -
Old_Codger wrote: »Is this even legal ? and will make budgeting every month difficult, allegedly it is to reduce the amount owing more quickly, Barclaycard do the same thing but balance never seems to come down.
Is it legal? Check your credit agreement to see if they have broken any laws.
If paying an additional £23 has put your monthly budget difficult then you probably have greater problems.
Allegedly reduces balance....errrr it actually does which in turn will save you money on interest payments....they ARE trying to help you.
If your Barclay card balance never comes down then your probably spending on it.
Can you not balance transfer all the high interest card debt onto low or 0% cards, cancel the vanquish card and cut it up....or are you spending on the cards each month?0 -
Oh dear, you all seem to think I am thick, I am a pensioner living on a fixed income so yes an extra £23 a month makes a big difference, my agreement hasnt changed since I took the card out, so rather than trying to find a friendly helpful answer on here I shall have to look elsewhere.0
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Old_Codger wrote: »my agreement hasnt changed since I took the card out
That's unlikely if you have had your card for more than a couple of months, given minimum payments and GDPR, amongst others.0 -
"I am a pensioner living on a fixed income"
So am I but it's still not a scam!0 -
Old_Codger wrote: »my agreement hasnt changed since I took the card out,
Updates to terms and conditions are not uncommon. As need to reflect current regulatory requirements. These would have been sent to you.0 -
Old_Codger wrote: »Oh dear, you all seem to think I am thick, I am a pensioner living on a fixed income so yes an extra £23 a month makes a big difference, my agreement hasnt changed since I took the card out, so rather than trying to find a friendly helpful answer on here I shall have to look elsewhere.
I wouldnt say you are thick no, just ill informed....
https://forums.moneysavingexpert.com/showthread.php?t=5853792
You havent grasped how credit card interest is calculated - maybe noone has told you or you havent asked the right questions...
You will pay more interest if there is 31 days in the month than 29. Probable why more interest was added to your Barclaycard even though the balance went down - you thought THAT was a scam.
Now you think this is a scam because you missed a contractual payment and now asked to pay more - maybe its in the terms and conditions that if you miss a payment then the minimum payment goes up.......
I do not have a Vanquis card as the rates are too high but looking on their terms and conditions it clearly states how they work out the minimum payments - hence why I said have you check the terms and conditions that you agreed to - so have they acted in accordance with the terms and conditions?
https://www.vanquis.co.uk/credit-cards/terms-and-conditions
On previous threads you have got PPI refunds from barclays and others, good job! I hope you put the money onto clearing your current unsecured debt to help your cash flow. By the way, the extra £23 is still YOUR money - so you can use the Vanquis card to spend the £23 on something that you would normally use your cash for - so you havent really lost out at all.
I hope these ramblings make sense.0 -
Old_Codger wrote: »my agreement hasnt changed since I took the card out
Even if your agreement hasn't changed, surely by making a late payment you've broken that agreement.
Or does it allow you to make late payments and keep the same minimum payments, doubt it.0 -
I understand that if I miss a payment there will be an extra £12 added to the next one, the following one should revert to normal, it wont instead I will have to pay £91 a month.0
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!!!8220;I don!!!8217;t like the new terms so it must be a scam and I want compensation!!!8221;
Is how this post comes across.0
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