/ Money

The new credit card that charges £15 to spend a penny

A pile of credit cards

Would you apply for a credit card that charges £15 a month to borrow one penny? I certainly wouldn’t. And yet, the new Shout credit card does just that. In fact, it’ll even charge you for not spending.

Unusually for a credit card, the new Shout card from Raphael’s Bank charges no interest or default fees. However, it does come with some hefty fees depending on how much you borrow.

In fact, you’ll have to pay £3.50 even if you don’t spend anything at all. If you spend between one penny and £100, you’ll pay a charge of £15. But spend a penny more than £100? That’ll cost you £30 a month in fees. And so it goes on.

The leap in fees as you tip into the next credit bracket risks encouraging irresponsible borrowing. For example, if I’m buying an item for £101, I might as well spend an extra £99 on my card that month as it won’t cost me any extra in fees. But it may well cause future problems when I can’t afford to repay the increased debt.

What’s the alternative?

If you have a poor credit history, several credit card providers offer cards with an Annual Percentage Rate of up to 40% and no annual or monthly fees. While the interest rate looks high, you can rebuild your credit rating and avoid paying any interest just by clearing your bill in full every month.

The new Shout card card is yet another product of the growing high-cost credit market. And with a £30 monthly fee for borrowing £101, it charges more than most payday lenders. The Shout card also offers unlimited rollovers at payday loan interest rates, further encouraging irresponsible borrowing.

Our report on credit in March found that an increasing number of people are using high-cost credit to pay for daily essentials like rent, food and utilities, with many also using it to repay existing credit. We’re calling for the Financial Conduct Authority to crack down on irresponsible lending across the whole credit market when it takes over its regulation in 2014.

I’m all in favour of mainstream providers developing affordable alternatives to payday loans and fervently hope they will. However, the new Shout card isn’t the answer I was hoping for. Would you be tempted to take out a Shout card?

Comments
Member

Certainly not, In fact they’d need to pay me to take a new credit card. Not the other way round.

Do they still charge shops etc a fee as well ? As I might be tempted to start up my own credit company, charging £14 a month to undercut them.

Who says you can trust financial services companies.

Member

I disagree with the assessment of this article.

If you borrow money on a credit card and are able to pay it off within the month, you incur no fees.

Likewise, if you borrow money on the Shout card and have a positive balance (i.e. non-zero) at the time the statement is processed, YOU INCUR NO FEES !

If you DO incur fees then you have a minimum payment to pay just like a normal credit card. HOWEVER, if you can’t pay this fee on time you incur no penalty charge on Shout like you would with any other credit card.

So, with the Shout card you can borrow £300 and pay off £301 and not pay a single penny in either interest or charges.

Experience shows that the £3.50 charge is only incurred when your balance is zero – this can be bypassed by having a non-zero balance of an overpayment of a pound.

Personally, I can’t get a credit card and I don’t want to take out payday loans. This card is perfect for free borrowing for me.

Member
Derek C Eydmann says:
30 December 2013

So have you used this card in the way you explain and incurred no costs , I have this card and not used it at all just as a emergency back up , I am about to go on a trip to the Caribbean and considering using it but putting it back into positive credit before the next bill date , also overpaying on it to have a positive balance. Do you think this would work. ???

Member
Mr BA Cunningham says:
9 January 2015

Hey what you said in your post is not strictly correct. I’ve had a shout Visa Card with a £300.00 Credit Limit since about November 2013 and you don’t have to pay your account into a positive balance to avoid the charges. Each month I. Use my card right upto my credit limit and then 5 days before my statement date, I pay my balance to zero and when I get my statement it shows zero charges and I have My full credit limit of £300 available for the following month.

Member
Lisa Marie says:
12 March 2014

AVOID this Credit Card like the plague!! Without asking for any permission from you whatsoever, the minute you have simply applied for a card, they STEAL your personal information & pass it on to third parties who CONSTANTLY bombard you with text messages & phone calls! PLEASE… Do not make the same mistake myself & others have don’t touch them with a barge pole!!

Member
Mr BA Cunningham says:
9 January 2015

Hey what you said in your post is not strictly correct. I’ve had a shout Visa Card with a £300.00 Credit Limit since about November 2013 and you don’t have to pay your account into a positive balance to avoid the charges. Each month I. Use my card right upto my credit limit and then 5 days before my statement date, I pay my balance to zero and when I get my statement it shows zero charges and I have My full credit limit of £300 available for the following month.

Member
Mr BA Cunningham says:
9 January 2015

Hey,

I don’t know what experience you have had, but I’ve had my card for nearly 15 months now and I have not received one marketing call from Raphael’s Bank, or any third party that they have passed my details onto.

Member
scott says:
15 March 2014

i cant figure out how to pay my card off
can someone help

Member
Member
martyn says:
18 June 2014

I have had this card since September and had no issue what so ever. I pay my balance by the 20th of each month and incur no cost. im you are able to manage finances . its no problem. if you run up debt and want to make minimum payments. its not for you.. simples

Member
Dave says:
28 June 2014

They give you credit of £300 and then send you a letter at the end of the month to say your over your limit because they have put the charges on. So your credit is not £300 it’s £255. Apply for a Aqua card they are much better.

Member
Greg says:
5 January 2015

I have no issues with Shout, but Aqua I had to take to the Ombudsman (and they had to compensate me) for belabouring me with computer-generated and threatening letters whilst ignoring the replies I sent them. Avoid Aqua like the plague!!

Member
Greg says:
8 November 2015

I’m replying to myself here! I have not paid any fees on my SHOUT card for several months, having kept my balance positive on the day of the month on which my statement is compiled. SHOUT has now told me that it is closing my account, and that this has nothing to do with the way I have managed it – it is a “business decision” following a review of “company strategy”. I am now writing to say fine, but no account = no fees, and this and every month I shall pay the minimum amount due. If they try to add fees, I shall ask the FSA what it thinks about the matter. Watch this space!

Member
Mr BA Cunningham says:
9 January 2015

Hey,

The reason is because you are not managing your finances your credit limit is £300 and you have £300 available what you have to do (as you would with any credit card) is manage it and check your balance often.

If you do not intend to pay your account in full, or reduce your balance to below £200, or £100 so you pay less charges, is pay £45 onto your account so when your statement is produced it will show you have a available credit of £5 or whatever and you will get that green tick on your credit report (asuming you paid your minimum payment on time) which is what you want that’s the reason why we take out cards like this to use them and get that green tick on your credit report every month, but what your doing is making your credit file worst as the information that is sent to Experian ect is how your account stands on your statement date, not how you have managed your account though the month and if it’s is over the limit on your statement date, that is the balance that is sent to Experian and then other creditors looking at that will take a very dim view as you can’t stay within the limit of the credit that you already have, which they could take it as you can’t manage your finances properly.

You are right though Aqua Card are fantastic. I got accepted for my card around May 2014 with a limit of £100, September they increased it to £600 and yesterday they increase it to £800.00, which is proof that if you manage your accounts well these high interest cards work and they improve your credit rating when the likes of Lloyds HSBC and Halifax slam the door in your face. thank you Aqua Card Shout Visa Card and Vanquis Bank, you guys have got a grateful customer for life 😀

Member
david says:
14 October 2014

I had my shout card for over a year and last week I cut it up and closed my account ..You ring them and you get an indian restaurant which their call centre is based in then you pay for the privlidge to ring and cannot understand a damn word they say..BIN IT

Member
Mr BA Cunningham says:
9 January 2015

Hey hehe Indian restaurant lol yeah I must say that is one thing that reallyyyyyyyyyyyyyyyyy bugs me about shout and I do use the automated system and not go through to an adviser unless I realll have to but three are the same so is Vigin Mobile and don’t get me started with virgin media. the only reason I’m staying with them is because TiVo is the best TV service and the broadband is proper DSL cable fibre optic otherwise I woul have bid them years ago Ever since they took over from NTL and Telewest, their customer service stinks. lol but that’s wha these companies are doing moving their call centre to India as the labour is cheap and taking jobs away from the UK I work in call centres from 1991, now there is hardly any work because of that reason.

Member

how do i close down my account for shout visa card can I phone them

Member
Mr BA Cunningham says:
10 January 2015

Cut you’d card though the strip and chip and post it with a signed covering letter to the address on the back of the card stating under the consumer credit Act of 1974 you give formal notice to you want to cancel your credit agreement and just make arrangements to clear any outstanding balance. Hope that helps ☺

Member
david says:
11 November 2014

Ron, ring them, write to them, e-mail them, their website is shut down so you have to SHOUT at them, then you get the next bill with the £15 on it and you start all over again…I rang my bank and put a stop on them taking money out of my bank and from my debit card, that works fine then you pay the balance at a bank in cash so its cleared but…..by the time the statement arrives another £15 has been added because they send statements out second class on the due date..in the meantime my original £15 is now £285 but hey ho so I have reported them to the banking ombudsman.

[This comment has been edited to for breaking our community guidelines. Thanks, mods.]

Member
Mr BA Cunningham says:
9 January 2015

lol hehe everyone calling Shout Card Services use 01293 228 709 it’s a normal rate and if your on a unlimited plan it’s FREE! As its a 01 number!! There’s my good deed for today:-D

Member
david says:
9 January 2015

Well bully for you Mr Cunningham lol

Member
Mr BA Cunningham says:
9 January 2015

Thanks!!

Member
Mr BA Cunningham says:
9 January 2015

One thing that I wanted to say is I’m sick of companies like which and Money Supermarket slagging off Provident, Vanquis Bank, Shout Visa Card, Aqua Mastercard & all the other High Interest bad debt credit cards.

These companies are not a charity & its ok for people in their high paid jobs that don’t need these products. If you, God speed & good for you, their is a part of the Community that do. I’ve had a shout Visa Card with a £300.00 Credit Limit since around 2013 and you don’t pay fees like which have stated in this post & I dont pay my account into a positive balance to avoid the charges.

Each month I use my card right upto my credit limit for my living costs, leave my income in the bank, for which I get get interest on, then 10 days before my statement date, I pay my balance to zero & when I get my statement, it shows I have a zero balance, zero charges have been applied to my account & I have my full credit limit of £300 available to use for the following month & I still have money left in my bank account to pay my other credit cards & bills.

When I took out my first card with Vanquis nearly 2 years ago, I couldn’t get credit anywhere. I couldn’t even open a basic bank account!!!!, which the government told the banks they have to provide for people that can’t open a normal account, when they stopped paying DHSS/Jobcentre Benefits by Giro Cheques & Order Books. I lost count the amount of times I applied for a Aqua Credit Card & Shout Visa Card & was declined & forget getting a mobile phone, but thanks to Vanquis, I’ve got my 123 current account with Santander, I’ve been with EE for over 12 months, I’ve had a Shout visas card for well over a year, Ive got mail order account with Jacamo an account with Freemans catalogue that I couldn’t get before & I had my 2nd Credit limit increase on my Aqua Mastercard yesterday.

If you use these type of credit cards/Doorstep loans responsible ie borrow pay it off then borrow again, these cards are fantastic & these companies are taking a high risk in lending to customers that mainstream lenders have written off and slammed the door in people’s faces and I think they have a right to reflect that in the interest and fees that they charge for the credit & service they provide .

You make and informed decision as to wether this card is

1. Right for you.

and

2. Is it going to help you establish or improve a damaged credit history.

And the answer is Yes!! If
1. you spend within your means.
2. You pay on time.
3. You stick within your credit limit and managed your account!! Make sure you know what you’ve spent & what credit you have left to spend, but most importantly make sure that at the end of the month, at least 7 days before your statement date, if you don’t intend to pay you balance in full, you make sure you have available credit left on your account for any, charges, payment protection insurance & any other fees that will be applied to your account on your statement date, as that is the information that is sent to Experian, NOT how you have managed your account though the month and you might have paid on time, but if you go over your limit, 1. Some cards charge a £12 fee or more each time you go over (check your T&C’s) and new creditiors looking at your Experian/credit file could think, “why should we give him more credit, when he can’t manage the credit that he as now properly”? And one of the main reasons we take out these products is to get that green tick on our credit files at the end of the month and as Aqua put on the Sticker that’s on Your New Master card:-

“Put This one in your Wallet/Purse. Please spend responsibility!

[This comment has been edited to align with our commenting guidelines. Thanks, mods.]

Member
david says:
10 January 2015

Well i have been banned from better places than this.

Mr cunningham is taking his wife out to lunch tommorow as a treat … Going to pound land and pay on his shout card…. Ooooh a treat

Member
ba_cunningham says:
10 January 2015

Hehe I’m single and it won’t b pound land it would be mackie’ds hehe lol

Member
david says:
10 January 2015

Bla bla bla bla if we were all like the arforementioned with no debt …then we would not have a deficeit of over 45 billion

Member
david says:
10 January 2015

OOOOOOOOOOOOOOOOOOOOOOOOH

Member
david says:
10 January 2015

I salute u MR C.

KIND REGARDS

D

Member

Thanks 😀 hehe lol if my advice helps someone sort out their debt and avoid the high charges on the Shout Visa Card then it’s as been worthwhile.. The Shout Card is like all credit cards. If you know how to use them and respect and don’t a abuse them, they can be a life saver.

The problems starts when you abuse then and over spend sues then pay off what you can then use them again!

Member

Can anyone please help or offer some advice. My husband had a Shout Visa card which he has now settled in full and the account has been closed. However, he had major issues with communicating with them. My partner was disputing with Shout as to why he was being charged so much but they would not return his calls (you can not call them, there is only an answer machine), they did not respond to his emails or letters and he was bombarded with hundreds of phone calls from call centres which were based abroad harassing him about why he had not paid but even when he told them he was more than happy to pay he was merely asking for a breakdown of his account they did not have details. As stated before my husband has now settled the account but he had not made payments whilst trying to dispute the matter and Shout have put a default on his credit file. Does anyone have any advice on how we can try to get this removed? He has been told by the Financial Ombudsman that he has a really good case but this could take up to 12 weeks to resolve and we really needed the matter sorted asap as we need to remortgage our house and the default is hindering this. Many thanks if you can help.

Member

Hi there,

Our advice in this situation would be to take your complaint to the FOS, which you already have. If you stress to the FOS that you need a speedy decision, you might be able to expedite it.

You could also contact the CRA to state that you dispute the default and they will investigate your claim with the lender. While it does this, a notice will be on the file, which lenders can see, saying the default is disputed.

Hope that helps.

Member

Hey,

First off, What he needs to do is contact Experian, Equifax & Call Credit (The 3 main credit reference agencies in the UK) & register a dispute against the default. It won’t remove it, but anyone searching your credit file will see that the default is in dispute & will see your statement stating your reasons for disputing the default. The next thing your Husband needs to do is phone Community Legal Advice & a case worker will take your case on & attempt to resolve the matter with Shout on your behalf.

I’m Sorry I’ve lost their number, but you should be able to get it off the Internet, from directory enquiries, or from the CAB. The CAB may be able to assist you in resolving this case as well. I have a credit card with Shout as well & if you can’t find anyone to take the case on for you, by law (I think it’s under the Consumer Credit Act 1974, but you might want to check this), they are required to respond to your complaint, in writing & I think the time scale is within 14 days, but again, you may want to check this. Send a recorded delivery letter to Shout Customer Service 51 Saffron Road LEICESTER Leicestershire LE18 4US outlining your complaint & state you want your complaint resolve to your satisfaction within the time scales stated in law & Inform them that if they are unable to resolve your complaint to your satisfaction, you require what is called, “A Letter of Deadlock” so you can refer you case to The Banking Onbusman, or go down the route of litigation in the small claims court, something for you to decide in your own minds.

Hope that helps & good luck.

Member
david says:
10 March 2015

They are a**e***** I closed my account with them and they billed me £15 the following month so I told them to f off I keep getting a statement nine month later and now owe a shed load but they can swivel…. write to the credit ref agency and get them to remove the default

Member

The credit reference agency cannot remove the defult as under the Data Protecton Act, they don’t own the data so they can’t remove it or change it only Shout can, or should have to ask them them the only thing you can do is ask them to put a “Notice of Correction against the defult so people so people seaching your file can see your resons for the defult and why it hasn’t been paid.

Member

I have a shout card they do charge for using the card event though I pay the balance in full every month and it’s a nightmare to set up direct debit I’ve just come off the phone to them which was difficult to understand due to their poor English and apparently I have to write a letter to head office to ask for my debit visa details to be removed and a direct debit to be set up because of this I will pay the balance and cancel this card I strongly advise anyone who is tempted to avoid this card like the plague it costs a fortune and is not worth the hassle for such a small amount of credit pay day loans are actually cheaper in charges but to be fair there are other cards on the market which are much more affordable

Member
david says:
20 April 2015

They r d*** heads I cancelled my card and I still get statements from them I now owe £355 lol all charges…

[This comment has been edited to align with our commenting guidelines due to offensive language. Thanks, mods]

Member

Perseverance pays off. We just had all late payments and default removed. Write to Shout and the CEO of Raphaels Bank, FSA and also get the Ombudsman involved. You won’t get the CEO of Raphael’s email address but they will give out his PA’s email. You will need to google to get the info. Good luck.

Member

I have just received a letter from Shout advising they are closing my account and said its not the way I have conducted my account. But they closed it dec 2015 I have a balance of £300 and they charged me £40.00 and sent me a letter I am over the limit, I THBOUGH IF TNHEY CLOSED YOUR ACCOUN T THE BALANCE is sealed of but this is not true my card don’;t expire until march 2016