MBNA Interest Charge

spongeblob_2

Okay you wonderful people of MSE Forum you may be able to help me here.

Following the wonderful guide on making free money, I opened an MBNA account with 6 months interest free.

I also opened an ING account and did a SBT of £5k straight into it.

This was on the 22nd April 2004.

I noticed on my MBNA statements it said under the amount to pay an estimated interest on your next statement. This was £0.00 every time. I paid £5 off each month.

The last statement I recieved around the 25th October had a balance of £4,975. The estimated interest on the next statement was £67.25. It had to be paid by the 14th November.

I applied for a captial one 18mth 0% and was accepted. They transfered £4,975 on the 11th November.

I recieved my new MBNA statement the other day, with a charge of £45.23 in interest.

Any ideas what I've done wrong? I can't see where they have got £45.23 from, or why I have been charged interest, I paid the balance before the due date (the 14th).

Is it that I've been paying interest for the period of the 22nd October to the 11th November? It wasn't very clear on the statement as at the time it said the estimated interest for the next statement, but I paid it all off before then?

I think I need to learn more about this complex world of money :-/

Any advise gratefully recieved ;D

robnye

Is it that I've been paying interest for the period of the 22nd October to the 11th November

yes

if you read the t's & c's it will specify how the interest is calculated. ie from the day after the date of the statement, in this case 22nd October, up until the next statement.

I got caught in a similar way, tis alittle tricky to avoid completely, only by paying of the 0% deal a month earlier ie after 4.5 months

Figment

Only way to avoid interest is to ensure you repay the outstanding amount in full by the date the 0% offer ends.

Milarky

Either pick up the phone and ask MBNA [it applies to all cards basically] for the end date and write that down OR go to their online servicing and it should say there the last date for doing 0% transfers. But write that down also as they seem to remove this information once you are in the last month!

Figment

Either pick up the phone and ask MBNA [it applies to all cards basically] for the end date and write that down OR go to their online servicing and it should say there the last date for doing 0% transfers. But write that down also as they seem to remove this information once you are in the last month!

MBNA appear to have removed ALL last dates from the online system.

spongeblob_2

Thanks guys, note to self then, don't go by statments, go by when the money was transfered.

Set myself up a TART to remind me for my capital one!

Joe_Bloggs

But then they can choose to change the 0% end date here. Trust MBNA as far as you can spit.
J_B.

Clariman

Thanks guys, note to self then, don't go by statments, go by when the money was transfered.

Set myself up a TART to remind me for my capital one!

You need to be very careful with 0% offer end-dates. Different credit card companies handle them differently. For example, LTSB Advance give you n months interest free credit from the date of your balance transfer. Others give you n months from the date your application was accepted. Others give you n months from the date you activated the card etc etc etc. Some will charge you interest as soon as the intro period is up even if it is in the middle of a statement period. Others will not charge interest as long as you pay off the balance by the due date on the first statement you received after the 0% period.

When Stoozing it is essential to read all the Ts & Cs of your card. If you don't understand anything then call the customer service centre. Always get the end date straight from the horses mouth and with evidence.

Clariman