MBNA & A Thick Question.......

moneymare

Excuse me if I'm being a little 'thick' here, but my situation is that for a number of reasons, I had maxxed out my £1500 limit, and missed a couple of repayments....after talking to the not so helpful staff at MBNA, I told them I could afford £50 per month if they agreed to freeze overlimit fees, etc. They did for 3 months, so having now been paying £50 per month for the last 14 months, the balance on my account has gone from £2000 to £2056......progress or what!

Am I entitled to claim back all the charges I have incurred on this account or not ?

nomoneytoday

You are not entitled to reclaim the charges, but a phone call to them might work wonders...

Clariman

Hi moneymare. That's clearing frustrasting not to see your balance go down after paying money each month. However, you signed a set of Terms and Conditions with MBNA which you agreed to. This will have documented what fees they will charge if you go over your credit limit or miss a payment.

Am I entitled to claim back all the charges I have incurred on this account or not ?

I am afraid that the simple answer to your question is "no". In fact, they have done more than they had to do by agreeing to freeze over-limit fees for 3 months. If you possibly can, try to find a way to pay more than £50 per month otherwise you will continue to go backwards.

I don't know the exact figures for your Ts & Cs, but my guess would be that an overlimit fee is probably £25 per month and that the interest rate you are paying per annum will be something like 15.9%. 15.9% of £2000 is going to be roughly £26 per month, so your £50 each month only pays over limit fee and the interest and nothing else. Could you find another £50 per month by cutting back on some non-essentials so that you can reverse the trend ?

As nomoneytoday says, perhaps another phone call to them to ask for some help. If they can freeze penalty payment for 3 months and you can stretch to paying £75 or £100 and you might just start breaking the back of it.

Clariman