Not warned of interest charges on credit card bill
Discussion
Hi guys, this is not exactly high finance but hopefully someone can help.
I did a balance transfer of £1k to a Virgin credit card on an 18 month interest free deal. A few months later, I did a cash transfer/advance from this credit card to my current account, also interest free but for 12 months.
I diligently check online each month to make sure that my direct debit has gone in to cover the minimum payment, and that my interest free period is not about to expire. There is a line on my statement that says "Promotional interest rate 0.00%: Balance transfers, cash transfers and xyz" and another line that says "If you do not see your promotional interest rate, the promotional period has expired" or words to that effect.
I was surprised to see that I had been charged about £18 of interest last month, so rang them up to ask why. Apparently the interest-free period on the cash advances has expired, while the initial balance transfer is still interest-free. I explained that my account information still showed a 0% interest rate on transfers and advances, and that none of my statements had given any warning about what interest I would be paying next month on the outstanding balance.
"There should be something on the back of your last statement" he says. "I get my statements online" I say, "and there is no information on there about this". He explained that I was told how long the interest-free period was when I made the cash advance, and that this is considered sufficient information for the consumer.
Can I write to them and argue that it is unfair that I was not given any reminder about the end of the interest free period, nor was I given any information about projected interest charges from month to month, or any opportunity to pay off the balance before incurring charges? Or are they correct in saying that I should have remembered the date of the cash advance, the interest-free period I agreed with them back then, and remember a year later that I should pay my bill?
A simple letter or email from them would have given me chance to pay the whole lot off; their approach seems a lot like "financial entrapment" and practically guarantees that anyone taking up their offer will pay a months worth of interest at the end of their promotional term. Maybe I am being hopelessly naive, and it is only £20, but it is irritating when I had that money sitting in a savings account, set aside to pay off the balance!
I did a balance transfer of £1k to a Virgin credit card on an 18 month interest free deal. A few months later, I did a cash transfer/advance from this credit card to my current account, also interest free but for 12 months.
I diligently check online each month to make sure that my direct debit has gone in to cover the minimum payment, and that my interest free period is not about to expire. There is a line on my statement that says "Promotional interest rate 0.00%: Balance transfers, cash transfers and xyz" and another line that says "If you do not see your promotional interest rate, the promotional period has expired" or words to that effect.
I was surprised to see that I had been charged about £18 of interest last month, so rang them up to ask why. Apparently the interest-free period on the cash advances has expired, while the initial balance transfer is still interest-free. I explained that my account information still showed a 0% interest rate on transfers and advances, and that none of my statements had given any warning about what interest I would be paying next month on the outstanding balance.
"There should be something on the back of your last statement" he says. "I get my statements online" I say, "and there is no information on there about this". He explained that I was told how long the interest-free period was when I made the cash advance, and that this is considered sufficient information for the consumer.
Can I write to them and argue that it is unfair that I was not given any reminder about the end of the interest free period, nor was I given any information about projected interest charges from month to month, or any opportunity to pay off the balance before incurring charges? Or are they correct in saying that I should have remembered the date of the cash advance, the interest-free period I agreed with them back then, and remember a year later that I should pay my bill?
A simple letter or email from them would have given me chance to pay the whole lot off; their approach seems a lot like "financial entrapment" and practically guarantees that anyone taking up their offer will pay a months worth of interest at the end of their promotional term. Maybe I am being hopelessly naive, and it is only £20, but it is irritating when I had that money sitting in a savings account, set aside to pay off the balance!
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