Minimum Payments with MBNA: Has your card been affected?

Arwen

itaaot wrote: »

Halifax, guity as charged. Noticed only today that they changed min repayments from 180 a month to 90 a month of which 56 is interest. Cant be arsed to phone them, will just pay the extra 100 manually.

I had the same with Halifax as well, they halved my payments.I am just paying the rest manually.

Re MBNA-my husband always overpays his card. Got his statement through,and the min payment AND the interest went up.So he got on the phone and after being passed from pillar to post,he managed to get a lower rate (after threatening them he would go into a Debt Repayment Plan). They slashed it by about 8%,but they did credit check him.His file is pretty clean.Odd missed payment by a day or so.

Maybe worth a shot for someone?

jtlowrey

Just to clarify, is this applying to DDs that pay the full amount? If it is, that is shocking, because they are basically trying to trick people into being charged interest. I perposefully only have a credit card for convenience and cashback interest.

If companys are now cancelling direct debits on the sly surely this is against some kind of banking code?

YorkshireBoy

jtlowrey wrote: »

Just to clarify, is this applying to DDs that pay the full amount?

No, it's just those set up to pay a fixed amount (of somewhere between minimum and full).

SmileyG_2

MBNA are looking to make money out of you wherever they can.

If you run a balance on your card by ready for a rate increase. If you don't, they will slowly up your interest rate, which you may not notice then finally.....

If you use the card and pay off the balance each month, you will now have to pay a minimum repayment of £25.00 per month and i was now charged a "minimum interest fee" of £1.00 each month you use the card. You therefore lose your interest free period. Use the card every month and that's a £12.00 annual fee. Remember them?

I just cannot be bothered with MBNA any more. I phoned them last weekend to remind them that I told them not to send me credit card cheques, following requests that they had previously ignored. I now have a simply VISA card with the Nationwide. No gimmicks, just 3 months 0% on purchases, and my debt paid off in order of highest rate first.

phutchings

I thought it may be useful for people to know that I've recently received a letter from MBNA re: my card, stating that all purchases I make on it up to £250 during November and December will be at 0% interest until May 2009.

Also all purchases I make on my card over £250 during November and December will be at 0% interest until August 2009.

I always pay off my card in full, but this deal means that, if I only use my card during November and December 08, it IS worth only paying the minimum each month until at least May 2009.

All I would say is, if you plan to take advantage of this arrangement, you MUST be on the ball. If you're going to take advantage of this deal I would strongly recommend doing the following:

First, make sure there are NO transactions on your statements with dates outside of that range. If your November statement comes in with any 'pre-November' dates on it, make sure that whatever you pay back that month is enough to cover those transactions.

Also, bear in mind that if you carry out a transaction on, say 30th Dec 08 it could appear on your next statement dated,say, 3rd Jan 09, and be considered 'chargeable'. Again, make sure whatever you pay back that month is enough to cover those transactions.

Finally, make sure that your May 09 statement payment covers the cost of all your '250 or less' Nov/Dec '08 transactions. You can then pay the minimum each month again until August 2009. At this point you pay off the balance of all of your 'over £250' Nov/Dec '08 transactions (i.e. the remaining balance of your card).

Please Note: I am assuming of course that this deal is open to all MBNA customers, but maybe it's not, so it's worth checking with them if you haven't received an offer letter. I would certainly want something in writing to back me up before doing this deal. Also I rarely use this card - I only got it to bag some introductory Sony points a while back (thanks for the Tip Martin!). So far, I have never been charged any minimum interest fee.
Happy Christmas Shopping! :beer:

Paul

sbknit

MBNA sent me a letter three months ago to say my payment of £180 per month on a debt of £3,000 was being reduced to minimum payment because if I borrowed up to my limit of £9,000 the £180 would not cover the minimum payment. I asked them to reduce my limit to an amount for which £180 would cover the minimum payment which they did. However, one month ago I had another letter saying I could no longer pay £180 it had to be the minimum payment or pay in full. I phoned and was given the same reason as in the first letter and when I questioned whether it was allowed I was told that it was due to rules by the FSA to ensure that people did not miss the payment deadline and therefore incur late payment charges. The FSA don't regulate credit cards!!!!

nikki789789

I had one from Virgin credit card.. they are now only taking £25 a month even tho i have borrowed £4500 (for my honeymoon..)

I immediately worked out the difference that i needed to put away every month to pay it all off before the 0% runs out and ive set up a standing order for the difference to go into my ISA rather than to Virgin, so i am gaining interest on it, then when the 0% runs out, ill pay the card off in full and ill have got a bit of interest too, rather than let them have it early..

sam0000

My boyfriend and I both have a credit card with MBNA. I just pay whatever I can afford each month, but my boyfriend had a direct debit set up. We both received a letter saying direct debits would be lowered to the minimum payment. This didn't effect me really but my my other half was pretty annoyed.

Having read about the standing order idea, it seems like a straight forward solution that my bloke will use.
It just annoys us that MBNA don't appear to have customers' best interests at heart!

Paula-Jane_3

I too received a letter from MBNA (BT card). I have been paying almost double on a balance transfer in an attempt to reduce it before the interest kicked in. But the new minimum payment has happened to fall in line with interest now being added! :mad:

I was also told by Monument recently when I tried to set up a DD 'only minimum payment or full balance'. :mad:

Wayne352_2

Egg have sent me a email with account changes
i don't have anything on my egg card and don't use it anymore (was a tart card :T)

i always pay manual aswell to pay as much as possible if not full amount on any card i have

see Egg email wording below, see what you guys n gals think of egg

---

We are making some important changes to your Egg Card Agreement. You'll see below a summary of the changes to your Agreement and the dates they became effective. It's important you understand what the changes below mean to you, so please read the following information carefully.

A summary of the changes effective from 1 October 2008

Clause 4.3 – this change is to reflect that we are not charging interest on charges specified in condition 7.1 that become payable after 1 October 2008 and has immediate effect.

Clause 10.6 – is added to clarify payment allocation.
A summary of the changes effective from 30 November 2008

Clause 2 – is changed as we are changing the minimum payment requirement so that you will always pay off at least the current month's interest.

Clause 4.5 – this clause has been deleted. The minimum interest charge of 50p that was contained in this condition is replaced by a fee of the same amount as now specified in condition 7.2.

Clause 7.1 – is changed to clarify when we will charge you for making a late payment, or when a payment item is unpaid.

Clause 7.2 – is changed to increase the fee for Transactions converted into Sterling. The top-up fee replaces the minimum interest charge of the same amount which formerly applied.

Clause 8 – is changed to clarify the definition of Cash Advance.

Clause 9.4 – is changed to remove the prohibition against internet gambling transactions.

Clause 11.2 – is changed to explain that Cash Back will be paid into your Account.

Clause 18 – is changed to clarify when we may limit the use of your Account.

Clause 21.4 – is changed to clarify when we may use information provided by credit reference agencies.