If you are one of those affected, you may be eligible for financial compensation. This article looks at what led to the Vanquis credit card refunds and who is entitled to one.
What Was the Repayment Option Plan (ROP) About?
Vanquis Bank created the Repayment Option Plan, an add-on product sold to their credit card customers. It allowed them to:
- Use a ‘lifeline’ to prevent late payment for a month or year.
- ‘Freeze’ their account for up to two years, during which they cannot use their card without paying or paying any interest, and their credit card ratings will not be affected.
- Go on a paid holiday for a month or year with interest added to their credit card.
- Get text alerts about their account.
Vanquis Bank offered this to all its credit card customers to help them manage their accounts. However, they left out a vital piece of information.
What Vanquis Bank Did Not Tell Customers
After the Financial Conduct Authority (FCA) launched a review into ROP in 2017, they confirmed two things. First, Vanquis Bank explained how ROP worked and the monthly charge to its customers.
Second, the financial institution did not inform clients that the total cost of the ROP included interest when they failed to fully pay the credit card balance every month. As a result of the omission, most Vanquis customers who wanted to manage their credit effectively found themselves in more debt.
Who Is Eligible for Compensation?
Not every Vanquis Bank customer is entitled to file a Vanquis credit card compensation claim. Those with a right to seek settlement are customers who owned Argos, Aquis, Black Diamond, Chrome, Granite, NEO, Origin, Progress, and Xylo credit cards issued between 2003 and 2014.
If you used the ROP during that time, check your old bank statements. If you are unsure, you can contact your credit card provider to review its record. However, note that Vanquis will pay you back, not your credit card provider.
The refunds are being paid to those:
- Who still have their credit card. If you fall into this category, you will get your money back in your bank account within 90 days.
- Who no longer used the Vanquis credit card. The bank will contact you if you are in this group, and you will likely get your money back within 90 days by cheque.
The amount you will get depends on how much you paid as interest. The annual percentage rate (APR) for customers varies from 19.9% to 79.9%, meaning you could have expended more than £100.
Conclusion
Although Vanquis Bank agreed to refund the interest charged for ROP from June 2003 to 31 March 2014, not everyone has received theirs. If you haven’t gotten yours or were unaware you’re entitled to a refund, you can start the compensation process today.