Virgin Money Screwed Up My Credit - Help!
Options
digitalvibe
Posts: 23 Forumite
Hadn't used my Virgin Credit Card for a while and received a letter telling me I'd need to use it or they'd close the account. I dutifully made a couple of purchases. When the time came for my Direct Debit to come out, I checked my account area to make sure it had gone through without issue and it had. A few days later I was checking my account again and discovered I'd been hit with a reversal charge. Took a while to find out why but seems that Virgin Money had cancelled my Direct Debit order since I hadn't used the card for a while, then tried to take payment and it was refused. Virgin Money admitted this was their mistake and removed the reversal charge. I then paid off the card balance in full. I was given assurance that my account was in good standing. A couple of days later, a letter from their head office that they were closing my account. No explanation given. I called but was told they had no information and that all I could do was write their head office. This has really hit my credit score which had previously been excellent.
Does anyone have any ideas of what I can do besides write the head office?
Does anyone have any ideas of what I can do besides write the head office?
0
Comments
-
I wouldn't worry about the score.
One closed account is going to have very little impact on your history.
Check your credit files and see how it is recorded. If a late payment is shown challenge it on the basis that they have admitted it was their fault.
Then move on - it sounds like you had no need for the card anyway.0 -
digitalvibe wrote: »Took a while to find out why but seems that Virgin Money had cancelled my Direct Debit order since I hadn't used the card for a while, then tried to take payment and it was refused.
Most likely it was your bank (not Virgin) who had cancelled the DD, as mandates that haven't been used for at least 13 months get cancelled automatically.
Did you check with your bank the DD was still in place.0 -
digitalvibe wrote: »This has really hit my credit score
No it hasn't.0 -
bengal-stripe wrote: »Most likely it was your bank (not Virgin) who had cancelled the DD, as mandates that haven't been used for at least 13 months get cancelled automatically.
Did you check with your bank the DD was still in place.
I think this is the case. AFAIK by default a DD will be autmatically cancelled by your own bank if is not used for over a year.
So it is important to check that the DD of the credit cards which are hardly used or other DD item to make sure that they are still on the list, at least once in a year.0 -
bengal-stripe wrote: »Did you check with your bank the DD was still in place.
Yes, checked with my bank you confirmed they had not cancelled it. Virgin admitted it was they who were no longer honouring the DD instruction and as such refunded me the reversal charge however it seems the damage has been done.0 -
-
digitalvibe wrote: »Credit Club seems to disagree.
The point that I believe was being made is that that's not a credit score.
That's a made up number, unconnected to any measure of credit worthiness.0 -
digitalvibe wrote: »Credit Club seems to disagree.
I have some spare points i can loan you until your score is back go where it was.0 -
What you are saying here really doesn't add up.
If Virgin had cancelled the DD at their end they would not have taken it in the first place. In order for it to have been taken from your account, Virgin must have applied for it. It makes no sense whatsoever that they would then refund it.
As for the 'reversal charge' have never heard of such a charge. A bank will charge if they are unable to pay a direct debit, but I can't see why they would charge if Virgin choose to refund what they have taken.
It sounds much more like you had insufficient funds in your account to cover the DD and the bank reversed it.
You say that Virgin removed the reversal charge, so then the reversal charge was on your credit card account and not your bank account as Virgin could not have removed a charge made by your bank.
As for your claim that this has 'really hit your credit score', at the very most your credit files will show a single late payment.0 -
digitalvibe wrote: »Credit Club seems to disagree.
Its a mickey mouse made up number that lenders don't use but reference agencies create in order to convince you to take out more credit through them. Ever noticed how Clearscore will show your score and instantly say "congratulations, you can qualify for these credit cards and loans"?
Your credit score is clickbait, designed to get you to take out debt that they get commission for selling. The contents of the file are what is important, not the number attached.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards