Extortionate MBNA Credit Card Charges

hitman126

:mad: Hi,


Wondering if anyone could advise me on this issue please.

The 0% interest rate on my MBNA credit card was due to end in the last week of December 2008 and as a result, I arranged to transfer the outstanding balance on it to another credit card that offered a similar interest free rate. Almost all of the balance on the MBNA card was successfully transferred, leaving just under £80 to be paid off.

As I was a bit concerned that the transfer may not be credited to my MBNA card account before the "payment due" date stated on the MBNA statement, I proceeded to make another payment to at least cover the minimum required amount of £25. This minimum amount was paid off my Barclays debit card on the evening of Wednesday 17th December. The payment due date by the way was Saturday 20th December.

I had in the past made much later payments than this particular one and had never had a problem of it not reaching the credit card account on time. The reason for this, I have always believed, was simply because I always log directly onto the card provider's website to make payments, entering my sixteen digit debit card number in the process. My experience of using this method of payment is that it is treated as a Point of Sale (POS) transaction and payment is completed there and then.....pretty much like using your debit card in a supermarket. If the payment isn't successful, you don't leave the place with your shopping.

I was therefore extremely agitated when MBNA charged me an nearly £200 interest on my latest statement, citing reasons that I had failed to at least make the minimum payment on time. This is despite the fact the back of the statement says the customer should make payments at least 2-3 days before the due date.

I contacted them over this and was advised they couldn't do anything about it. My queries therefore are as follows:

1) In the first place, are these financial institutions still permitted to even charge such punitive and draconian interests on late payments? Am I wrong in believing the government recently instructed them all to give customers at least 6 months grace?

2) Do I have a case in my argument that I made my minimum payment on time, between 2-3 working days of the due date? Even more so, considering I used a debit card from which debits from the account are known to be instant, when the 16 digit card number is provided?

Please Help.

Thank you.

YorkshireBoy

I think there are two issues here:

Firstly, you were charged interest because you didn't clear the balance before the 0% end date.

Secondly, when you made your online payment you should have realised it wouldn't clear until Monday (not that you could have done anything about it anyway at such a late hour on Wednesday). Didn't you see this message?...

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.

To answer your specific questions:

1) Yes, and yes.

2) No. (your account may be initially debited at the time, but this is generally just an authorisation and settlement doesn't take place until 2 [or 3 depending on the time you made your payment] days later).