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Late Payment withdraw promotional rate - MBNA / Virgin

Last post Tue, Jan 06 2009, 1:40 PM by robT. 4 replies.
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  •  Tue, Jan 06 2009, 1:40 PM

    Re: Late Payment withdraw promotional rate - MBNA / Virgin

    Hi

    I have managed to miss a recent payment on my Virgin / MBNA credit card but I suppose its partly my own fault as I wa spaying using a standing order that i setup myself from my bank rather that the suggested route of setting up a direct debit with Virgin directly. The payment wa smissed by 4 days due to the fluctuating payment dates that Virgin / MBNA seem to want to use to screw customers like myself over. I did even ask the guy setting up my initial balance transfer the date i should make payments on and he didn't mention the fact that the payment date might change.

    I got lumbered with the defaulting sum of £12 as well as the card rate reverting to the standard rate, so lost out quite a bit there. I initially rang up to complain and try sort the problem out and all I got was one of the male advisors being very arsey with me, stating they wouldnt do anything and then transferring me to the rates department which he said m,ight be able to help and which happened to be shut on the day I rang, so i was pretty p***ed off after spending time waiting in a que just to get nothing and to be virtually hung up on. I waited a few days and then I rang again today. This time I got a fairly friendly irish lady who although said it wasn't their fault that I missed the payment, did at least re-instate my initial 0% balance transfer offer for the rest of the agreed period, so at least thats something.

    I guess my advice is just keep on ringing up to complain and see what advisor you get, and how far they are willing to help you. I never had any problems missing payments with other card companies though. Its a bit underhand chaging the payment date, its got to be something they do on purpose to catch people out. I definitley wont be using Virgin or MBNA credit services in the future if I can help it.

    Hope other people have more luck with this issue than me.

    Rob

    • Post Points: 5
  •  Thu, Dec 11 2008, 12:50 PM

    Re: Late Payment withdraw promotional rate - MBNA / Virgin

    Hi,

    How did you get on with this 'late payment' withdrawal ?

    I have just done the same thing. Initially I was mad at myself for missing it (by 1 day), but on a closer look at my statements for the last year, I can see that the due dates have changed from 14th or 15th of the month to 10th of the month, and this last month it was the 8th ! I notice a similar change across all MBNA accounts I have.

    Speaking with "Customer Services" they say that the dates *will* fluctuate ... this I can accept, and clearly has done by literally the odd day, but this is now a definate trend that they're pulling the due date up each month. And I'm not receiving the statements any earlier.

    At the moment I think a letter will prove futile, and in any case I'll have moved the money elsewhere in the meantime. I just think it should be highlighted that MBNA seem a little underhand in this. I too have now added all my accounts to DD. I used to highly rate/recommend MBNA, but to be honest I'm now looking to wean myself off them.

    Cheers.

    • Post Points: 20
  •  Wed, Nov 26 2008, 5:37 PM

    Re: Late Payment withdraw promotional rate - MBNA / Virgin

    well its a comprehensive letter - will concessions be made by Virgin/MBNA? I too once made the mistake of a day late payment to Virgin on two consecutive months - due to the payment date changing. I quickly paid it off with cash. I then took advantage of another credit card I already had who were having a 0% offer for 12 months and received a cheque in the post. Put it into my current account which effectively put me back where i was originally. I paid 3% for the money I received which was a great deal less than the standard rate i would have paid if i had stayed with virgin.

    This was the spur that made me set up direct debits of minimum payments, set to be paid 10 days before the payment due dates. If i feel i want pay more, then this method allows me to pay whatever i want, whenever i want. Surprisingly, I received some benefit from doing this - for the first two months I forgot i'd done it with my Halifax card. I made two generous payments in each month and they increased my credit limit by a very substantial amount because I was conducting my account well!

    I have noticed over the past year that the amount of time between receiving statements and having to pay off the bill is getting less. For Halifax, I have a week. For Virgin a week. Yet the statement date can be over two weeks prior to the day i receive it.

    For those people who have a credit card belonging to one of the big banks, the chances of a late payment fee are reduced. For example, Barclaycard, my very first credit card, accepts online payments from Barclays bank accounts on the very last day.

    I doubt Virgin will part refund your £90 - consider this an application fee. If this is your very first ever late payment, I would have thought you could have rung up and asked them to let you off for a first offence but this comes with consequences for MBNA in that if they do this, it follows they should continue with the promo rate.

    So you aren't the first person to suffer from late payments and won't be the last. Don't worry about your credit score being affected by one late payment - if that's all you have against you, then it's fine. And should you want to transfer your balance to someone else, there are still providers interested in creditworthy customers.

    I'd go with George about Halifax - they are extremely helpful both with credit cards and branch matters.

    • Post Points: 5
  •  Wed, Nov 26 2008, 4:51 PM

    Re: Late Payment withdraw promotional rate - MBNA / Virgin

    i think you should ring them back before you send the letter and and speak to a manager. and tell them there is a mix up as you notified them before the due date and sought confirmation that the payment would land on the due date as you had concerns. also tell them that you was assured by their customer service rep that the payment would land on the due date.

    i had a similar issue with my halifax card and i have to say they were fantastic. not only did they reinstate my promotional balance (i had typed in an incorrect reference number online) but they refunded my late payment charge as well. so if you are going to move have a look at them.

    • Post Points: 5
  •  Wed, Nov 26 2008, 4:11 PM

    Late Payment withdraw promotional rate - MBNA / Virgin

    Hello

    A couple of months ago I transferred a balance over to my virgin card as they were offering 0% until May09. However the payment dates have fluctuated so much I was late this month by one day in payment, so they have withdrawn my promotional rate and have said over the phone that there is no chance of me getting it back.

    Below is a copy of the letter I am going to send in to complain. Do I stand any chance of getting the promotional rate reinstated? Is there any point in waiting for a reply, before I move the balance away from Virgin? Is there anything that I could add to the letter that may help?

    I don't have to keep the debt with them as this is my only debt and it will be repaid before May anyway.

    Thanks for any help.

    Re: Withdrawal of Promotional Balance Transfer Fee

    To Whom It May Concern:

    I am writing to request that a recent withdrawal of my promotional balance transfer rate to be reinstated at zero % until my May 2009 statement.

    The rate has been withdrawn because my payment was one day late with being allocated to my account.

    I appreciate that you are complying with the terms and conditions of service. However, I believe that the withdrawal of the promotional rate should be reversed due to many reasons, which I have detailed below.

    1) My payment date has fluctuated quite significantly over the past 12 months. One month it was not due until the 2nd of the next month. However in November my payment due date was the 23rd. This was effectively the 21st as you do not accept payments on a Saturday or Sunday. This means the deviation between my latest and earliest payment dates is in excess of 10 days, which is over 30% of the number of days in any month – this I believe is unacceptable. If your rates fluctuated so much, it would result in many of your customers moving to your competitors.

    2) I only received the statement on the evening of the 19th due to me being away. (I previously thought that the 20th would have left enough of time to make a payment on time).

    3) The payment was made on the 20th in the afternoon, at this time I realised what my payment date was and the amount of time that it took to “allocate” the payment. I phoned customer services up to check whether the payment would go through on time; they assured me that my payment should “land” on the due date (not sure how this is possible as the due date was a Sunday).

    4) As the payment was made before the due date, and is authorised at that point, MBNA knew for a fact that payment was to be made and would not bounce, even if they had not physically allocated the payment to my account – should this not be done automatically?

    5) The amount of fees and interest that I will have to pay for this one mistake is ridiculous. I was charged almost £90 to transfer a balance of £3,000 to the card (which should technically now be refunded as you are not providing the service that I paid for). I have been charged £12 for the late payment fee. If the balance is left on the card until May, the interest for Dec – May will be almost £300.

    6) I am paid monthly at the end of the month, whether I paid on the 19th or 20th does not make any difference at all, therefore if I was aware of the consequences of paying on the 20th I would have ensured that I would have made a payment earlier. The impact upon MBNA of my slight oversight is also practically zero.

    7) I have been a customer for quite sometime now and not once has there been a late payment or a large balance left on the account for a long period of time (except when a promotional rate is applied to my account).

    8) This is the first time I have ever been late paying any bill for anything, and I hope this will not affect my credit rating.

    9) I was planning on using my Virgin Credit Card for many transactions over the next two years in particular (with the balance being paid off each month), as I am getting married and thought that due to the option to apply for an additional cardholder and the relatively large credit limit would have been ideal for such use.

    10) I am willing to have my minimum payment increased, as way of “punishment” for the late payment.

    11) I am also willing to set up a direct debit so this does not occur again.

    12) I am also willing to make a one off payment to reduce some of the balance immediately, if this would help the reimplementation of the promotional rate.

    If the rate is not reinstated, I will be forced to pay off the balance over the next 2 months and take my business elsewhere. I will also ensure that I complain to the financial authorities regarding the changes in my payment date in particular, which I believe is unethical.

    I look forward to reading your reply on this matter.

    • Post Points: 50