A question about : Balance Transfer Fees – Misinformed by customer service?
Balance Transfer Fees – Misinformed by customer service?
In the Balance Transfers article on this site, my top pick cards are those which offer long 0% transfer offers without charging a hideous fee for the privilege, namely RBS , Natwest and Lloyds Platinum.
However, I get numerous emails, and see a lot of forum comments from people who have been told by customer services at the above banks that a 2% fee will be charged for any balance transfer.
Therefore, I thought I’d put this note together about it (it’s primarily just me publicising the general advice given in this forum about this issue, as I think it’s spot on).
First thing to know - I'm right, they're wrong
This isn't a trite statement, I've been 100% personally reassured by the senior powers at the various banks that no BT fee will be charged when you use these cards during the 9 month intro period.
What if they tell you differently
So, when you call up to arrange your transfer, ask the person you’re dealing with whether a fee will apply.
If they tell you that it will, politely end the call, and dial up again. Do this again, and again, until you get the right answer! Make sure you get the name of the wonderful representative who gave you the happy news, and go through with your fee free transfer.
In case you’re wondering why this happens, it’s simply the case that, on occasion, customer service representatives aren't briefed properly. They're often working in a call centre on various different products and most customers are so ill informed, they take what they're given.
If that still doesn't work
Escalate. Ask to speak to someone senior and get absolute clarification, tell them about this website and that the info comes direct from their senior management.
One thing not to confuse it with
We're talking about balance transfer fees here. However you may be charged for doing a super-balance transfer in some circumstances and that is legitimate.
Best answers:
- Nice one Martin,
I've had the same experience before with car insurance (especially the AA).
I'll push them for a further discount and if none's forthcoming i end the call. Ring up again, speak to someone different and end up with another 10 % off.
I say push them as far as you can [ preferably over a cliff ;o) ] - Martin
Thanks for the clarification. If you speak to the powers that be at Virgin/MBNA again in the near future, it would be very interesting to know what their position is on the recent Ts & Cs changes that many MBNA Platinum card holders have been getting. As you may be aware they state that they have introduced a new category called Money Transfer (i.e. SBT) which is chargeable pretty much as a cash transaction. This is obviously disappointing to those who stooze or anyone who wants to have additional money in their bank account for whatever reason. However, the poll we have been conducting on the stoozing website currently shows that no Virgin customers have had their Ts & Cs changed. Is this a timing thing or a different policy on behalf of the Virgin/MBNA brand ?
You can find the poll on the stoozing website. I'll not post a link
Clariman
Clariman - Hi Martin, Thanks for the info. I had a nightmare with Egg on my anniversary offer but that has now been sorted with no BT fee however! I have just taken out a Virgin card and was interested in your comments as with my card I received a letter from Mark Huggins (Head of Credit Card Insurance Services) and in the letter it states 'please note there is a charge of 2% of the balance you are transferring (minimum Ј2 maximum Ј35)' Are you still sure that ther is no BT fee with Virgin?
- Hi there - I just got my Virgin credit card today and on the letter is says there will be a 2% balance transfer fee same as Billyash - I'm a little annoyed because the only reason I went with Virign is because I thought there wouldn't be a charge - I transferred my balances on the application form and therefore have probably already been charged the 2%.
- Yorkshire Boy,
I received my Virgin Card in July. My letter said the same thing about being charged 2%. I was a bit worried but followed the advice on here and stoozing.com (cheers guys). Like you, I did the BT by phone and was assured it would not be charged, IT WASN'T. I have subsequently used the Virgin card as a mule to do a second SBT and, again, did it by phone AND WASN'T CHARGED ANYTHING.
I am sure that if Virgin WERE actually charging for BT's during the 0% period we would definitely have heard about it on here or one of the other stoozing sites. It just is not happening. Just like Martin says in his article.
The letter is misleading but there have not been any charges. - Hi,
Received my Virgin card this week and had the same 'insurance' letter from Mark Huggins. There is a reference to BTs and then an asterisk - at the bottom of the letter the asterisk comment is "Please note, there's a charge of 2% of the balance you're transferring (min Ј2, max Ј35) ..."
However, the Ts&Cs in the letter containing the card itself still said "may". Needless to say, when I called to activate the card I double-checked the position. I had it confirmed that there are no fees for BTs during the introductory period.
HTH - I got same letter like people above, on my T&C that I signed it also says 'may' like in Richie(UK)'s.
This is my first BT and don't want to pay any fees. My Virgin card is on my desk waiting to be activated. Please, has anyone activated their card with new instrustions regards 2% charge and got confirmed that this does not apply.
I applied for BT on my credit card during online application, and want to put rest to my current a/c, basicaly to do SBT.
Your help will be much appriciated - Thanks for the advice, but my efforts have been fruitless. I rang three different departments within Virgin credit card system, who all advised that there is indeed a 2% balance transfer fee after the initial transfer on account openeing. I quoted your advice and was told to ring customer loyalty at MBNA, who again re-iterated that after the initial transfer everyone is charged 2% fee. So far I have found no-one within Virgin who will confirm nil balance transfer fee. Can anyone offer a dept or name to agree otherwise?
- Hey Den - I have checked and haven't been charged the 2% after all. If you're worried just ask the customer service person when you phone to activate it just to make sure - be prepared for a long wait though I was on hold for 20 mins plus.
- I will phone tomorrow to Virgin to activate my card... will let you all know.
Thakns for answers - Keeping my promise, I would like to ensure everyone that there were NO charges to my account for balance transfer to credit card, and was promised today that there are no charges for SBT. Virgin CS and then MBNA CS were happy to confirm it.
Was refused credit limit increase prior activation. - Just followed the MSE Virgin link as in post #1 above as I wanted to by items on my Egg Blue card and transfer the balance to the Virgin card each month while putting the rest I would have paid into my ISA (effectively building up a stooze pot slowly).
However, just looked at the * by the 9 months at 0% p/a, and it says:-
* from the date the account is opened. There is a handling fee. See the summary box for full details.
Looking at the summary box:-
2% handling fee (min. Ј3, max. Ј50) for credit card cheques and balance transfers.
Now, as I understand the details on the Virgin website, they ARE going to charge the 2% if I sign up... has this changed recently because it goes against the advice given here as recently as last week?
Also, would the 9 months apply from account opening (read when they get the signed docs) or when the card is activated? - I went into my local Abbey branch today to apply for the Balance Transfer card as recommended. They printed out the terms and conditions which clearly show that a fee (2% min Ј3 max Ј35) is payable. This seems to be contrary to the advice you posted that this was not applicable if you applied for the card via Abbey
- Hello,
New to this so apologies for any mistakes!
My expenditure has increased but I have had to cut my hours at work so less money coming in! I'm sure a lot of people know what I mean.
I was wondering if I could pay off say Ј3K of my mortgage, (currently owe Ј17k on 6.14Ј SVR, mortgage lender won't give better rate as only 3 years to go) by transferring the balance to one of these 0% credit cards. Maybe I could get a couple? That way I wouldn't be paying 6.14% on 3-6K and would save hundreds of pounds?
Does anyone know if there could be any pitfalls in doing this please? My husband isn't so keen! :confused:
Grateful for any advice. Thanks, Maureen.
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