late fee charge for credit card...but amount was in their "holding account" in time

drjazz

Hello,

I paid off my mbna mastercard bill in full by online switch card payment via the mbna website on morning of 18th December 08, amount left my account on 19th December, due by the 20th (a Saturday) but payment never registered with mbna until 23rd. I have now been charged £12 late payment fee. According to my bank, the money went to mbna's holding account on the 19th, and it is their responsiblity to collect it.
Am intending to call mbna to dispute their entiltement of late payment fee, but would be very grateful for advice on my legal position before doing so.
thanking you in advance

Jon

jamalfatty

Have you read the back of your statement that tells you how long payments take to clear? I dont have an MBNA account but would also assume the website would tell you how long the payment will take when you do it?
Money doesnt generally move anywhere through banking systems over weekends so the payment would have needed to be with them by the 19th, thus paying it the day before and expecting it to reach them is quite optimistic.

I'd call them, they may refund the late fee as a courtesy but they wont be obliged to as your payment was late

[Deleted User]

As above, advice is correct.

I would simply call them and ask them, as it was a one off, would they kindly waive it on this occasion.

Always give it at least a full working day before the payment is due to pay online, otherwise call and pay on card over the phone to a person that way they cant dispute it.

johnllew

You left it a day too late. MBNA give guidance on credit dates for DC payments here (you have to be logged in to see it):

https://www.bankcardservices.co.uk/NASApp/NetAccessXX/InfoScreen?key=debitCardPayment&acctID=6160

drjazz

But surely if if was in their holding account on 19th Dec, i.e. a day before payment was due, and it is their duty to collect it, they have no right to charge me a late fee...

TFD_2

I think your bank describing as the funds going into their 'holding account' is a little misleading - funds taken via credit card take 2-3 days usually to land in the recipients account.

As other people have said, you may be able to get any late payment fee refunded as a gesture of goodwill, but if their T&C's or website state to allow x number of days for a payment to be allocated to your account, you can't really argue if it has taken that long.

YorkshireBoy

drjazz wrote: »

But surely if if was in their holding account on 19th Dec, i.e. a day before payment was due, and it is their duty to collect it, they have no right to charge me a late fee...

Difficult to argue a case when you were presented with this information when you made your payment...

When will my payment credit my account?

Payments taken before 5pm Monday to Friday will be credited to your credit card account in two working days.

Payments made after 5pm or weekends or bank holidays will be credited to your account in three working days. Need more information?

Payments made after 2.30pm on the last day of each month will take an extra day to credit your account.

In all cases, you will see your payment on your account the day after it is credited.

PROLIANT

A holding account is a bit like a sorting depot, until the payment has been posted to your credit card account it is not classed as cleared at the other end. Give it atleast 4-5 working days, always put a little fat on the time scale with these things.

gb-ww

Hi all. Normally I just hide in the forums but I was looking around for some advice and this thread is identical to my issue. I also paid my full balance on my Virgin Money CC (MBNA) on the 18th, due on the 20th. Money left my account on the 19th (actually quicker than normal). However it didn't show on my VM account until the 21st and therefore I have also been charged the £12.00 plus interest for the month. Like the OP I wonder if its worth chasing or just better to forget about it? My limit is almost 5k but I very rarely go over a couple of hundred in a month and always pay off in full.

Stevew_2

The Abbey has just joined the trend of moving the payment deadline forward by 1 week to make millions.....

I have just recieved my December statement and noticed I have been charged late payment, The Abbey have always had a settlement date around the 13th of the month but they have changed this on Decembers statement to the 7th, which has opened up millions to the spectre of late payment charges. The call centres refuse to discuss refunds saying that they notified clients...Probably in with the rest of the junk and Credit card cheques they send you to tempt you into the 0% finance (with a hidden 3% handling charge)...

This is a practise I have seen with some other cards to weed out the full payers and none profit cleints....I have complained to the Ombudsman...

YorkshireBoy

gb-ww wrote: »

My limit is almost 5k but I very rarely go over a couple of hundred in a month and always pay off in full.

Sounds like paying by direct debit is the answer to your problem?