Virgin 0% Balance Transfer Scam

Virgin 0% Balance Transfer Scam

Author
Discussion

colin72blue

Original Poster:

63 posts

227 months

Friday 15th May 2009
quotequote all
Recently i took out a Virgin credit card as i had some money on another that i wanted to transfer and make the most of the 0% offers around.

I transferred the money from an Alliance and Leicester account and strangely it seems both cards are run by GE Money as shortly after they sent me details of my new card on A&L letter headed paper! A printing error apparently.

Anyway i have just got my statement through and there is interest and a late payment fee.

When i rang to find out why interest was added i was told that because i was late paying the money (2 days) i incure a £12 fee. Fair enough can't argue with that.

However in the T&C's there is a clause that says if you are late paying during the promotional period not only is there a late fee but you also get charged interest. In addition your promotional period is also cancelled and your interest rate goes back to the standard variable rate from then onwards!!!

Is this not whats known as un unfair contract term?

I have sorted it now and i am back on the old rate but they are refusing to credit the one months interest charged, so will take it further.

Just a bit of friendly advice for those of you who dont read the T&C's in detail.


Odie

4,187 posts

190 months

Friday 15th May 2009
quotequote all
Why where you late paying?

10 Pence Short

32,880 posts

225 months

Friday 15th May 2009
quotequote all
It's a well known and reasonable clause in almost all 0% offers. They will give you 0%, you must pay on time.

sleep envy

62,260 posts

257 months

Friday 15th May 2009
quotequote all
colin72blue said:
However in the T&C's there is a clause that says if you are late paying during the promotional period not only is there a late fee but you also get charged interest. In addition your promotional period is also cancelled and your interest rate goes back to the standard variable rate from then onwards!!!

Is this not whats known as un unfair contract term?
nope, they made their offer and you accepted it by accepting the card

TonyHetherington

32,091 posts

258 months

Friday 15th May 2009
quotequote all
On the other hand, 12 months ago I took out the virgin 0% balance transfer 16months period for £2k. I havent spent a penny on it, have a standing order meaning in 4 months it will be paid off, and have a direct debit just to make sure if anything goes wrong they still take the money.

I've been charged 0% interest and had zero fees.

I've made money mistakes in the past - indeed one which cost £200 in fees and I phoned up my bank (HSBC) and explained it was totally my fault, massive apologies, and they refunded £200 saying dont do it again.

shakotan

10,806 posts

204 months

Friday 15th May 2009
quotequote all
Virgin Credit Cards (MNBA) are crap anyway. they've shoved my APR up to 28%, and dispite my telephone calls saying the 'typical' rate adverised is around 17%APR, won't lower it.

page3

5,021 posts

259 months

Friday 15th May 2009
quotequote all
At least you have T&Cs to check.

Post Office only give general T&Cs not specific ones appropriate to your card, which seems a bit odd and potentially problematic in the future.

For example, I recently applied for (and got) a platinum card with them. My policy documents give incorrect deals and APR. On questioning this I was told it is correct. The details are for their standard card, and these are the only details they send out.

They were happy to confirm APR etc on the phone, but all written documentation only refers to their other card.

Edited by page3 on Friday 15th May 15:06

page3

5,021 posts

259 months

Friday 15th May 2009
quotequote all
TonyHetherington said:
On the other hand, 12 months ago I took out the virgin 0% balance transfer 16months period for £2k. I havent spent a penny on it, have a standing order meaning in 4 months it will be paid off, and have a direct debit just to make sure if anything goes wrong they still take the money.
Can you explain how this works?

I assume you have a standing order to pay a set amount each month, and a direct debit (with the card company) to pay the minimum?

I was going to just set up a monthly standing order, but the extra DD might be a good idea??

TonyHetherington

32,091 posts

258 months

Friday 15th May 2009
quotequote all
Yup, don't hold me to the figures but say I had £2k to pay over 16 months, I did a standing order for £125 (2000/16) on the 15th of every month.

Just in case the date fell foul of a bank holiday or something silly, or some other random reason like I ended up paying in the following month not the current, I also setup a DD to allow them to take the minimum every month (£25) - so they're always happy no matter what. So in effect I'm giving them £150/month but making sure I don't get charged any fees or anything like that with the back up of their DD.

Those aren't the exact figures, but you get the idea I trust?

edit; that, of course, means I will pay it off earlier than the 16 months which is just a bonus.

Edited by TonyHetherington on Friday 15th May 15:14

page3

5,021 posts

259 months

Friday 15th May 2009
quotequote all
TonyHetherington said:
Good stuff.
Yes, makes sense. Excellent idea.

colin72blue

Original Poster:

63 posts

227 months

Friday 15th May 2009
quotequote all
Odie said:
Why where you late paying?
Not sure it matters but looming redundancy, wedding arrangements to make, funerals etc etc. Just a bad month all round really and only just got the card so hadn't sorted out the direct debit. Just moved house too so was in change address mode.

Soovy

35,829 posts

279 months

Friday 15th May 2009
quotequote all
colin72blue said:
Recently i took out a Virgin credit card as i had some money on another that i wanted to transfer and make the most of the 0% offers around.

I transferred the money from an Alliance and Leicester account and strangely it seems both cards are run by GE Money as shortly after they sent me details of my new card on A&L letter headed paper! A printing error apparently.

Anyway i have just got my statement through and there is interest and a late payment fee.

When i rang to find out why interest was added i was told that because i was late paying the money (2 days) i incure a £12 fee. Fair enough can't argue with that.

However in the T&C's there is a clause that says if you are late paying during the promotional period not only is there a late fee but you also get charged interest. In addition your promotional period is also cancelled and your interest rate goes back to the standard variable rate from then onwards!!!

Is this not whats known as un unfair contract term?

I have sorted it now and i am back on the old rate but they are refusing to credit the one months interest charged, so will take it further.

Just a bit of friendly advice for those of you who dont read the T&C's in detail.
rofl

People like you make me laugh mate!!

Why is it a scam?


You know that document they gave you to read? That's the rules of the offer, see? Or did you not read it?

Scam my ar53.

colin72blue

Original Poster:

63 posts

227 months

Friday 15th May 2009
quotequote all
10 Pence Short said:
It's a well known and reasonable clause in almost all 0% offers. They will give you 0%, you must pay on time.
How is that fair?

I am late by a couple of days. Accepted. Late fee charged. No problem. Wipe out entirely the 0% offer which is the whole reason i took the card. Sorry but i dont see the fairness.

What i do see is a term put into a contract that has little to do with fairnes but is purely there to catch people out. Would understand it better if you lost the promotional rate if you missed the payment buy a month or two or were lates several months on the trot.

And its obviously not well known as i've had a number of 0% cards over the years, as have friends, and it is the first time any of us have come across this.

Soovy

35,829 posts

279 months

Friday 15th May 2009
quotequote all
colin72blue said:
10 Pence Short said:
It's a well known and reasonable clause in almost all 0% offers. They will give you 0%, you must pay on time.
How is that fair?

I am late by a couple of days. Accepted. Late fee charged. No problem. Wipe out entirely the 0% offer which is the whole reason i took the card. Sorry but i dont see the fairness.

What i do see is a term put into a contract that has little to do with fairnes but is purely there to catch people out. Would understand it better if you lost the promotional rate if you missed the payment buy a month or two or were lates several months on the trot.

And its obviously not well known as i've had a number of 0% cards over the years, as have friends, and it is the first time any of us have come across this.
Listen, some free advice.

1. You have NO LEG TO STAND ON
2. This is NOT and unfair contract term
3. Next time you sign up for an offer, read the rules and stick to them. It's not difficult.


sleep envy

62,260 posts

257 months

Friday 15th May 2009
quotequote all
colin72blue said:
And its obviously not well known as i've had a number of 0% cards over the years, as have friends, and it is the first time any of us have come across this.
I think you've got a claim for miss-selling a product

you could get compensation yes

10 Pence Short

32,880 posts

225 months

Friday 15th May 2009
quotequote all
colin72blue said:
10 Pence Short said:
It's a well known and reasonable clause in almost all 0% offers. They will give you 0%, you must pay on time.
How is that fair?

I am late by a couple of days. Accepted. Late fee charged. No problem. Wipe out entirely the 0% offer which is the whole reason i took the card. Sorry but i dont see the fairness.

What i do see is a term put into a contract that has little to do with fairnes but is purely there to catch people out. Would understand it better if you lost the promotional rate if you missed the payment buy a month or two or were lates several months on the trot.

And its obviously not well known as i've had a number of 0% cards over the years, as have friends, and it is the first time any of us have come across this.
Virgin took you on on the presumption that you were a low risk customer who would not cost them money. In return for you being that low risk customer, they offered you 0% on your balance transfer. Once you missed a payment, their presumption that you are a good customer was proven wrong, so you no longer offered them the reward they expected. You broke the contract by missing a payment, the penalty for this is less trust from Virgin, a symptom of that being the withdrawal of 0%.


colin72blue

Original Poster:

63 posts

227 months

Friday 15th May 2009
quotequote all
Soovy said:
colin72blue said:
10 Pence Short said:
It's a well known and reasonable clause in almost all 0% offers. They will give you 0%, you must pay on time.
How is that fair?

I am late by a couple of days. Accepted. Late fee charged. No problem. Wipe out entirely the 0% offer which is the whole reason i took the card. Sorry but i dont see the fairness.

What i do see is a term put into a contract that has little to do with fairnes but is purely there to catch people out. Would understand it better if you lost the promotional rate if you missed the payment buy a month or two or were lates several months on the trot.

And its obviously not well known as i've had a number of 0% cards over the years, as have friends, and it is the first time any of us have come across this.
Listen, some free advice.

1. You have NO LEG TO STAND ON
2. This is NOT and unfair contract term
3. Next time you sign up for an offer, read the rules and stick to them. It's not difficult.
There's always one smart arse rolleyes

Listen, some free advice back to you

1. Leg to stand on for what? As i said i have sorted it but unlike you and your i'm alright jack f@$k you atitude i genuinely think it is wrong and they should not be able to duck out of the agreement for such a minor issue. Punishment does not exactly fit the crime now does it?
2. Worth checking your grammar before you type especially when giving advice about checking things thoroughly. It is clearly unfair. Am guessing you probably work in the financial world and believe everything is fair provided you make money.
3. Thanks for the pearls. Consider myself thoroughly told off and will go away to model myself on you and doing everything perfectly from now on. If only i wasn't born so stupid nuts

pies

13,116 posts

264 months

Friday 15th May 2009
quotequote all
I had a similar offer a while back and it stated very clearly what intrest was charged and when . If you missed a payment it clearly stated you would return to standard rates.how do you think these 0% deals are funded.sorry but you have nobody to blame except yourself smile

10 Pence Short

32,880 posts

225 months

Friday 15th May 2009
quotequote all
colin72blue said:
they should not be able to duck out of the agreement for such a minor issue.
I think you will find it is YOU who ducked the agreement. That is why THEY altered their conditions.

TonyHetherington

32,091 posts

258 months

Friday 15th May 2009
quotequote all
colin72blue said:
they should not be able to duck out of the agreement
But this is the point, colin - they've not ducked out of the agreement. In fact, the complete opposite, they've stuck explicitly to the letter of the agreement.