The weired thing was, they didn't start applying the charges until November. The bit where the direct debit wasn't set up correctly was in July. Why did it take them four months to decide to charge me interest?

Phoned them again. After much discussion they refunded the part of the interest they had taken unfairly and reinstated the original rates until the original deadline so we are back on track. Why they couldn't have done that in the first place I do not know. Thanks everyone.

Fantastic! Thanks. FOS Financial Services Ombudsman? Thanks.

I took the card out over the phone, I guess there's a copy somewhere, I'll look for it, but I expect it does say if I'm late with a payment I don't get the free interest period. The fact it was their doing probably isn't covered. I have made an official complaint in writing. I've said I want all my interest refunded. Thank you Rory.

Hi, new here, glad it's not just me struggling with the forces of darkness! I took out a Virgin Credit Card in July 07 which promised something like a years interest free credit. I set it up over the phone and arranged a direct debit to pay a chunk each month. Only something went wrong and the Direct Debit was not set up which I did not realize for a month or so. When I got a later demanding payment from Virgin I phoned up and asked what had happened to the Direct debit and they did not know. I set it up again and this time it worked. What they did not tell me was that as I was late on my my first payment because of the Direct debit fiasco, I would be charged full interest from then on in and as I have been unwell and not on top of things it's taken me 9 months to realize the payments deducted by Virgin were INTEREST payments and not paying off the capital at all. I am horrified as I have been totally ripped off and was too stupid to notice. Virgin just say "tough", have offered to refund two months interest (£160) and give me a reduced rate (about 8% I think) until November. What do you lot think?