ROP Refund - ROP refund incorrectly calculated

Back in February, Vanquis was told by the FCA that they should give refunds of the interest paid by a million customers on the Repayment Option Product (ROP) of their credit cards.

These customers will mostly have been contacted by Vanquis to let them know that they’re due some money back.

The problem is that Vanquis may not have calculated their refunds properly – and many Vanquis customers may be due more back! 

The reasoning behind this is quite complex – and our friends at Debt Camel have done a great job of explaining everything in greater detail.

What does this mean for you? 

Here’s the lowdown – if you normally repaid your balance in full, you’ll only get a small refund (or no refund at all) and Vanquis will probably have calculated your refund correctly. 

For everyone else, however, it looks like there are two problems. 

The first problem is that Vanquis aren’t following the FCA’s rules properly when it comes to calculating the interest you’re due as a refund.  

According to the FCA’s rules, Vanquis should work out their calculations so that ROP (and the additional interest you were charged because of it) is paid off last. 

Unfortunately, they haven’t – and this will have a big effect on the amount you’re due to be refunded, potentially leaving you worse off than you would have been if no interest had been charged on the ROP.

The second problem is that Vanquis’s calculations stop too soon.

Vanquis are currently stopping their calculations 30 days after sending an email to their customers regarding the refunds. 

This isn’t fair. 

As our friends at Debt Camel put it:

“Suppose that £500 of your Vanquis balance was caused by the ROP charges. And suppose that you read this email, were horrified at the cost of the ROP, and phoned Vanquis up and cancelled the ROP.

This would have stopped your ROP problem getting any worse, but that £500 is still sitting in your balance and you are still being charged interest on it every month. Just cancelling the ROP doesn’t get rid of this accumulated ROP so you should get this ongoing interest refunded to you.”

Basically: if your refund looks too small, complain!

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