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  • FIRST POST
    • Old_Codger
    • By Old_Codger 8th Aug 18, 9:49 AM
    • 8Posts
    • 1Thanks
    Old_Codger
    New minimum payment scam?
    • #1
    • 8th Aug 18, 9:49 AM
    New minimum payment scam? 8th Aug 18 at 9:49 AM
    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.
Page 1
    • zx81
    • By zx81 8th Aug 18, 9:52 AM
    • 18,141 Posts
    • 19,341 Thanks
    zx81
    • #2
    • 8th Aug 18, 9:52 AM
    • #2
    • 8th Aug 18, 9:52 AM
    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.
    • Wheres My Cashback
    • By Wheres My Cashback 8th Aug 18, 9:57 AM
    • 3,062 Posts
    • 37,680 Thanks
    Wheres My Cashback
    • #3
    • 8th Aug 18, 9:57 AM
    • #3
    • 8th Aug 18, 9:57 AM
    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.
    Originally posted by Old_Codger
    SCAM

    Unbelievable Story !
    • foxy-stoat
    • By foxy-stoat 8th Aug 18, 10:14 AM
    • 2,481 Posts
    • 1,370 Thanks
    foxy-stoat
    • #4
    • 8th Aug 18, 10:14 AM
    • #4
    • 8th Aug 18, 10:14 AM
    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.
    Originally posted by Old_Codger
    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?
    • Old_Codger
    • By Old_Codger 8th Aug 18, 10:48 AM
    • 8 Posts
    • 1 Thanks
    Old_Codger
    • #5
    • 8th Aug 18, 10:48 AM
    • #5
    • 8th Aug 18, 10:48 AM
    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.
    • zx81
    • By zx81 8th Aug 18, 10:52 AM
    • 18,141 Posts
    • 19,341 Thanks
    zx81
    • #6
    • 8th Aug 18, 10:52 AM
    • #6
    • 8th Aug 18, 10:52 AM
    my agreement hasnt changed since I took the card out
    Originally posted by Old_Codger
    That's unlikely if you have had your card for more than a couple of months, given minimum payments and GDPR, amongst others.
    • oldagetraveller
    • By oldagetraveller 8th Aug 18, 10:59 AM
    • 3,144 Posts
    • 1,664 Thanks
    oldagetraveller
    • #7
    • 8th Aug 18, 10:59 AM
    • #7
    • 8th Aug 18, 10:59 AM
    "I am a pensioner living on a fixed income"
    So am I but it's still not a scam!
    Did you hear about the politician who had a backside transplant? It rejected him.
    • Thrugelmir
    • By Thrugelmir 8th Aug 18, 10:59 AM
    • 59,546 Posts
    • 52,851 Thanks
    Thrugelmir
    • #8
    • 8th Aug 18, 10:59 AM
    • #8
    • 8th Aug 18, 10:59 AM
    my agreement hasnt changed since I took the card out,
    Originally posted by Old_Codger
    Updates to terms and conditions are not uncommon. As need to reflect current regulatory requirements. These would have been sent to you.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • foxy-stoat
    • By foxy-stoat 8th Aug 18, 11:09 AM
    • 2,481 Posts
    • 1,370 Thanks
    foxy-stoat
    • #9
    • 8th Aug 18, 11:09 AM
    • #9
    • 8th Aug 18, 11:09 AM
    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.
    Originally posted by Old_Codger
    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.
    • Asghar
    • By Asghar 8th Aug 18, 11:34 AM
    • 202 Posts
    • 118 Thanks
    Asghar
    my agreement hasnt changed since I took the card out
    Originally posted by Old_Codger
    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.
    • Old_Codger
    • By Old_Codger 8th Aug 18, 12:04 PM
    • 8 Posts
    • 1 Thanks
    Old_Codger
    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.
    • Gary_Dexter
    • By Gary_Dexter 8th Aug 18, 12:06 PM
    • 1,783 Posts
    • 1,021 Thanks
    Gary_Dexter
    !!!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.
    • Old_Codger
    • By Old_Codger 8th Aug 18, 12:06 PM
    • 8 Posts
    • 1 Thanks
    Old_Codger
    And yes I did use my PPI refunds to reduce my borrowing to a manageable level only to find that a payment has been increased beyond a normal, reasonable level.
    • foxy-stoat
    • By foxy-stoat 8th Aug 18, 12:23 PM
    • 2,481 Posts
    • 1,370 Thanks
    foxy-stoat
    And yes I did use my PPI refunds to reduce my borrowing to a manageable level only to find that a payment has been increased beyond a normal, reasonable level.
    Originally posted by Old_Codger
    So your minimum payment should be interest + default fee + 2.5% or 3% of the remaining balance.

    If you miss a payment on a balance transfer with a promotional rate then you would of lost the promotional rate and had to pay interest at the higher rate. Is this what has happened?
    • Old_Codger
    • By Old_Codger 8th Aug 18, 1:14 PM
    • 8 Posts
    • 1 Thanks
    Old_Codger
    No balance transfer so my payments should be as you describe plus any default fee, if any.
    • MABLE
    • By MABLE 8th Aug 18, 1:20 PM
    • 3,602 Posts
    • 1,884 Thanks
    MABLE
    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.
    Originally posted by Old_Codger
    Be like me and set up a dd. I usually pay manually the various amounts owing on my cards but if there is ever an issue with me not being able to I know the dd will kick in.
    • Nasqueron
    • By Nasqueron 8th Aug 18, 1:31 PM
    • 5,287 Posts
    • 3,200 Thanks
    Nasqueron
    Like it or not, paying more off every month will save you money in the long run as it'll reduce your interest. I appreciate 23 a month can be a lot but think of the hundreds you will save in reduced interest
    • foxy-stoat
    • By foxy-stoat 8th Aug 18, 1:58 PM
    • 2,481 Posts
    • 1,370 Thanks
    foxy-stoat
    No balance transfer so my payments should be as you describe plus any default fee, if any.
    Originally posted by Old_Codger
    So what was your balance on the last statement?

    The late payment fee is 12.
    • lindens
    • By lindens 8th Aug 18, 2:10 PM
    • 2,152 Posts
    • 7,032 Thanks
    lindens
    Be like me and set up a dd. I usually pay manually the various amounts owing on my cards but if there is ever an issue with me not being able to I know the dd will kick in.
    Originally posted by MABLE
    I was just going to suggest this. Life often gets in the way of our best laid plans, so a DD set up to take the minimum payment takes care of the worrying of missing out by one day. You are still then able to make extra payments by internet banking etc
    You're not your * could have not of * Debt not dept *
    • appleblossum
    • By appleblossum 8th Aug 18, 11:12 PM
    • 20 Posts
    • 4 Thanks
    appleblossum
    ive been through myself with the same company and i think you may have missed a key point..You say your minimum payment was 63 and now they want you to pay 91. Well i am assuming they have (like they did for me) put youy on a TEMPORARY arrangement. By doing this they calculate how much you would pay over three months (say 189 -63 x3) and want you therefore to "catch up" so by the end of month 3 you would be back to normal and the normal payment schedule should resume.

    A word of advice though - make sure that this amount is affordable. if its not get back in touch with them. dont get sucked into a spiral of recurring charges. I suspect also that like my father, you had the card from when you were working and just kept ticking over the balance with no real pressure to pay back the debt. They are quite happy making their 60 per month in interest and now suddenly you are retired, struggling to make the minimum payment and breaking the cycle. In my fathers case i found out that his near 5000 balance which had rolled over for nearly 15 years was now all charges and he hadnt made a purchase for over 10 years. In his case he was able to prove he had no disposable income (get pension credit) and is currently paying a nomimal 20 a month, interest free and they will get the rest from his estate when he dies!.
    When you know you have a bad credit rating:
    1) When your bank wont even let you go 10 o/d
    2) When you cant even get a payday loan
    3) Your local restaurant asks for payment up-front before serving you lunch
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