Virgin Money CC (MBNA) Check your Statements!!

[CAGisforME]

Hi, and apologies if this post is in the wrong section, but I thought it would be important information for those with a Virgin Card.

 

My OH's Virgin Money Credit Card Statement arrived today

 

and he hit the roof.

 

So, I checked last months and WHAT A BUNCH OF JOKERS THIS LOT ARE!

 

It looks like this.....

 

MARCH 2007

 

Balance from Previous Statement £8173.36

23 Feb Payment Thank You £100.00 CR

6 March Interest Charges £84.78

 

ESTIMATED INTEREST - NEXT STATEMENT £84.78

 

New Balance £8158.14

Next Payment due 30th March

 

APRIL 2007

 

Balance from Previous Statement £8158.14

26 March Payment Thank You £100.00 CR

05 April OVERLIMIT FEE (Based on £12.00 PARDON??

balance 8218.89)

05 April Interest Charged £160.75 PARDON??

 

ESTIMATED INTEREST - NEXT STATEMENT £156.67

 

New Balance £8230.89 PARDON??

 

So, my OH rang them. Apparently they DOUBLED their interest rate from 13% to 26% last month.

 

They could NOT explain why they had based the £12 overlimit fee on some made up figure. Looking at the statement the balance was 8158 MINUS 100 paid on 26th march, therefore 8058 and NOT what they claim it to be.

 

The operative also told my OH he was the only person to have phoned up to complain. Somehow I doubt it.

 

Eventually after much wrangling she reduced the interest rate for April back down to 13% - stating it would be back up to 26% next month and refunded the charge.

 

OH has just transferred the full balance to another CC he had at a MUCH more sensible rate.

 

I just thought you should be warned!

[babynan]

HI, Thanks for this,

I have just been on line and checked my statements, and yes, the same thing as you say, the interest has gone up.........

Thats one hell of a big jump !!!!!

Going to do the same as you OH and transfer:)

[CAGisforME]

VERY pleased it helped you babynan.

 

[sequenci]

that's a joke. what a massive increase in interest.

[CAGisforME]

Well, I thought it WAS a joke.

 

But, apparently the telephone operative told my OH that EVERYONE's interest rate went up this month.

 

I can only hope that this post is in the right place to ensure people see it.

 

[redsue]

don't they have to inform you in writing of the change to the terms and conditions - they can't just sneak this in the back door can they?

[Jase1982]

don't they have to inform you in writing of the change to the terms and conditions - they can't just sneak this in the back door can they?

 

I was thinking that. They could technically charge whatever the hell they like!

 

I have a virgin card, and it's more than likely well over the limit now. If people aren't told about the increase, they won't make the minimum payments, especially if you have a large balance.

 

.....Anyway, ho is the minimum fee on this card £80? for a balance of 8 grand? I have 4 grand, and am paying £80 too.

 

also, surely MBNA need to send out a new executed agreement for you to sign? Otherwise, the only copy that will be signed will reflect the existing interest rate.

[yaffsimone1]

Yes Virgin did exactly the same thing to me my rate went from 16% to 30%!!!!!! and this was before i even started having money troubles. Had been the perfect customer, no explanation or anything. Then my circumstances changed literally overnight and couldnt afford to pay all creditors and this hike in Virgins rate just made things worse! Now having a battle with MBNA

[sequenci]

 

also, surely MBNA need to send out a new executed agreement for you to sign? Otherwise, the only copy that will be signed will reflect the existing interest rate.

 

not if the interest rate was variable.

[redsue]

they can change the rate to whatever they like if its variable - but I'm sure they need to tell you about the rate change.

[sequenci]

they can change the rate to whatever they like if its variable - but I'm sure they need to tell you about the rate change.

 

absolutely, they certainly have to do that.

 

i would imagine it would be something along the lines of 28 days.

 

i know egg told me when mine went up to 17% (grrr)

[redsue]

i know egg told me when mine went up to 17% (grrr)

 

you lucky so and so - mine went up to 21.9%

[sequenci]

what a rip-off considering the current rate of interest!

[CAGisforME]

According to the rather flustered lady at Virgin they sent notification last month.

 

However when challenged about this by my OH then started rambling about the rate being variable.

 

"Oh, so you didn't sent notification out then?" asked OH

 

"I don't know" admitted the operative

 

I cannot believe that they can get away with this.

 

Thank goodness OH had another card to port the balance on to.

 

ESTIMATED INTEREST - NEXT STATEMENT £84.78 it said - on THEIR printed statement and then, when THEIR bill comes in it's £160.75! I think someone needs to have a word with the "estimating" department!

 

It will be interesting to see if this thread grows, as, according to the nice flustered lady at Virgin my OH is the ONLY person to have complained about it! Mmmm Yeah Whatever

 

[falcon65]

Ive got a Virgin card and when i signed up for it it was at a rate of 15.9%

with a limit of four grand.Like an idiot ive been paying by direct debit and didnt look at any statements.I know i was very close to the limit and as soon as i went over they put the interest rate to 29.9%.So every month ive been paying £93-00 and they have been charging me £89-00 in interest alone.Along with the £12-00 overlimit fee it now stands at £4150

(£150 over its limit).Ive phoned Virgin and they wont discuss any interest rates while my account is in arrears so im paying the £150 off tomorrow and will phone em up about the interest rate they are charging.I think these bankers(i think thats the right word)should all wear a mask and carry swag bags.

[sequenci]

I wonder what Richard Branson thinks of this.

[CAGisforME]

falcon - This is exactly what would have happened to my OH if I hadn't been being nosey!

 

A standing order payment goes to them for £100 per month and so without careful scrutiny of the statement I would have just assumed we'd made our monthly payment as per usual.

 

In our case the interest rate went up "for everyone" to quote the Virgin operative.

 

I hope you get your pennies back. I assume you will be claiming them?

[falcon65]

ive just been on the phone with them again and still the same"cant do anything till overlimit is cleared" but she did say that interest rates had gone up for everyone and i said "what doubled" and she says yes.Can someone confirm this info and is this legal 15.9% to 29.9% just cause they say so.

[humbleman]

ive just been on the phone with them again and still the same"cant do anything till overlimit is cleared" but she did say that interest rates had gone up for everyone and i said "what doubled" and she says yes.Can someone confirm this info and is this legal 15.9% to 29.9% just cause they say so.

 

Look like if they can't charge you £25/30 penalties for failed/late payments, then they can just double the interest rates and get the monies that way. I think there must be a way of stopping them doing this.

[CAGisforME]

Just to clarify.

 

If you have a Credit Card Agreement then it's highly likely that the interest rate is stated as "variable", so they don't need a new agreement, OR that they reserve the right in VERY small print, to change the interest rate whenever there is an R in the month, or in laymans terms, whenever they please.

 

My OH was paying 13% interest and was "apparently" informed it was going up last month. It's now doubled to 26%. So falcon, it's likely your interest rate has doubled too, unfortunately.

 

With regards to late/overlimit charges. These should be dealt with like ALL unlawful charges and if you have been charged in this way you will need to claim them back using the formula on this website.

 

 

falcon - I am fairly sure that they cannot refuse to discuss your account with you simply because you are over limit, especially given that this is the position my OH was in and it's likely that the vastly increased interest rate hike has caused much of your overlimit amount. If it were me I would push the issue, ask on what grounds they are refusing to speak to you about it, is the call recorded, who are you speaking to, what is their id number, can you speak to their manager etc. Persistance tends to help.

 

[redsue]

My OH was paying 13% interest and was "apparently" informed it was going up last month.

 

I'd ask them for a copy of this 'so called notification' and proof of when it was sent out to you - sounds incredibly dodgy to me. I don't think they would like to inform their valued customers that they are doubling their interest rates!

[CAGisforME]

I'd ask them for a copy of this 'so called notification' and proof of when it was sent out to you - sounds incredibly dodgy to me. I don't think they would like to inform their valued customers that they are doubling their interest rates!

 

Oh we have!

[falcon65]

Got my card under its limit today and gave them a ring,they have dropped the interest from 29.9% down to 20.9% which is alot better.