MBNA minimum payment - why and how

david78

Some Background:

I just got an MBNA platinum plus card with 0% for BTs and SBT'd £7000 to my current account. MBNA charged me £140 (2% -- no cap) but after talking to them on the 'phone they gave me a credit of £90. The balance on my first statement is therefore £7050.

Three questions:

1. Why do they want a minimum payment of £145 on my first statement? (I thought it was going to be £5?). (Is this because of the fee?) ???

2. Will the minimum payment be £5 next time? ;D

2. How do I arrange to pay the minimum payment from my on-line bank. (I don't want to set up a direct debit). I have their sort code 08-61-30 and account number 70328725. Do I put my 16 card number as a reference number like I do with Egg?

David.

wuly78

1a. 140 Fee + 5 min = 145
2a. it should be only 5 from next month + any other fees
3a. don't know

johnllew

2. How do I arrange to pay the minimum payment from my on-line bank. (I don't want to set up a direct debit). I have their sort code 08-61-30 and account number 70328725. Do I put my 16 card number as a reference number like I do with Egg?

Yes - use the bill payment facility. But why not use direct debit - you don't have to remember to make the minimum payment each month and you can always cancel quite easily at the end of the promo.

Shinds

David - I hope that's not ur real sort code and acc number... ::)

johnllew

David - I hope that's not ur real sort code and acc number...  ::)

No, it's MBNA's real sort code & a/c number.

david78

Thanks all.

I feel silly not noticing that 140+5 = 145.

I intend to set up a direct debit to take the minimum payment from month 2 onwards, but I'm not sure there is time to set it up for the first payment hence my question 3.

sly_dog_jonah

Unless MBNA say they will take the minimum payment by DD on the statement, you have to make payment manually.

Beware also with MBNA that any manual payments made after a DD has been set up will not reduce the DD by the manual payment amount. With most other CC companies the DD amount reduces by the amount of the manual payment so long as its a good few days (5?) before a DD is taken. Not with MBNA though.

Also beware when switching banks and migrating Direct Debits. Unless you inform MBNA that a direct debit has been cancelled they will try and take it regardless, and charge you £20 if it fails!

I got stung when I asked Cahoot to migrate my DD's across from LloydsTSB, the MBNA DD transfer failed because MBNA wouldn't accept changes from a 3rd party, but during the switchover the existing DD still got deleted. Despite making a manual payment weeks in advance of the old DD date, I was charged £20 for a 'bounced' DD. Fortunately MBNA refunded the charge when i kicked up a fuss - I pointed out that their T&Cs don't explicitly state that a DD payment won't be reduced by a manual payment, and that this is different to all my other Credit Cards.