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    • C James
    • By C James 14th Jun 19, 12:32 PM
    • 3Posts
    • 1Thanks
    C James
    Virgin Atlantic Excessive Interest Charges
    • #1
    • 14th Jun 19, 12:32 PM
    Virgin Atlantic Excessive Interest Charges 14th Jun 19 at 12:32 PM
    Due to making a number of payments in the run-up to our wedding, we had to pay-off our Virgin Atlantic CC balance in advance to ensure we didn't hit our limit in the half a month before our previous monthly bill came out. This meant we had to amend our regular direct debit to prevent it taking the full monthly amount without accounting for the additional payment.
    The following month, our payment was due to come out on 2nd June (a Sunday) and we had realised that we hadn't updated our DD to pay off the full balance again. We transferred the additional amount over, but owing to the weekend, this could only be done on Monday 3rd.

    Figuring this would be a single day's interest, we were happy to take the small hit in interest, until this month's bill came through, charging us 60 in interest because we didn't pay the outstanding balance in full. I don't understand how it can be legal to charge so much for a single day delay (especially when it is the next business day)- I think they are trying to claim they then charge interest from the date of the bill instead of the payment due date.
Page 1
    • zx81
    • By zx81 14th Jun 19, 12:36 PM
    • 23,829 Posts
    • 26,493 Thanks
    zx81
    • #2
    • 14th Jun 19, 12:36 PM
    • #2
    • 14th Jun 19, 12:36 PM
    It's not excessive - it's the interest you signed up to.

    Interest is charged on a daily basis. It's only waived if you clear in full. They're not charging for a single day, but for all the days you borrowed the money for.

    It's entirely legal and nothing to worry about.
    • msallen
    • By msallen 14th Jun 19, 1:07 PM
    • 1,084 Posts
    • 1,359 Thanks
    msallen
    • #3
    • 14th Jun 19, 1:07 PM
    • #3
    • 14th Jun 19, 1:07 PM
    They are not "trying to claim they then charge interest from the date of the bill instead of the payment due date", they are charging interest on a daily basis from the day it was charged to your account, as do all cards if the balance is not settled in full by the due date, as per the T&Cs you signed up to.

    I'm sure it stings, but take it as a costly, but still very cheap if you learn from it, lesson to understand financial products you use rather than assuming how they probably work.
    • Gary_Dexter
    • By Gary_Dexter 14th Jun 19, 2:25 PM
    • 6,557 Posts
    • 4,353 Thanks
    Gary_Dexter
    • #4
    • 14th Jun 19, 2:25 PM
    • #4
    • 14th Jun 19, 2:25 PM
    Why did you amend the DD?

    If Virgin do not automatically adjust DD's then you just need to request the overpayment be refunded back to you, or spend it
    • Ben8282
    • By Ben8282 14th Jun 19, 8:07 PM
    • 3,544 Posts
    • 1,957 Thanks
    Ben8282
    • #5
    • 14th Jun 19, 8:07 PM
    • #5
    • 14th Jun 19, 8:07 PM
    Virgin don't amend the direct debt amount if a payment is made before the direct debit is taken and will continue to take the full direct debit amount.
    Strange thing though is that the OP as written doesn't really add up.
    Changing the direct debit from full balance to whatever it was changed to after the statement was produced but prior to the direct debit being taken should not change the direct debit amount for that month as it would be too late and I would have expected the full amount to be taken anyway and the change to be applied from the next statement.
    Concerning the following month. if the DD was due to be taken on a Sunday it is correct that it would not have been taken until Monday. But this does not explain why they waited until Monday to 'transfer the additional amount over'. Faster payments can be done on Sundays.
    Also the amount to be taken by direct debit should have been clearly shown on your statement which obviously you failed to check until the very day that the direct debit was due to be taken.
    Last edited by Ben8282; 15-06-2019 at 3:06 AM.
    • Kentish Dave
    • By Kentish Dave 14th Jun 19, 8:52 PM
    • 806 Posts
    • 1,492 Thanks
    Kentish Dave
    • #6
    • 14th Jun 19, 8:52 PM
    • #6
    • 14th Jun 19, 8:52 PM
    Next time you get married budget better, and don’t neglect to understand the consequences of buying larks’ tongues ahead of paying off your credit card.
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