Full refund of 3 years credit card interest

cloggii

I have never been one to complain, but after watching Martin for some months on GMTV I thought I would give it a go as I had an issue with my MBNA credit card. When I first opened the card the interest rate was 0%, after the initial offer was over the interest rate kept creeping up - the maximum it crept to was a whopping 34% !!!!!. MBNA said it was risk based pricing but yet I was not near my credit limit, nor had I missed any payments. Due to the ridiculous interest rate I repaid the balance owing on my credit card. I then wrote to MBNA asking them to refund some of the interest that had been paid as the rate was extreamly excessive. MBNA refused to refund any interest whatsoever.
I then took my complaint to the banking ombudsman. I had to wait a few months for a response but the outcome was that the ombudsman found the interest rate excessive and requested MBNA to refund all interest paid since my card had been opened along with a goodwill payment for any inconvienience. Last week I received a cheque from MBNA for £3000 !. I am really pleased I took the time to complain. Thanks Martin :T

jonesMUFCforever

This does seem to be a little unbelievable if you ask me.

ILW

I think there is a little mre to this than meets the eye.

sevensisters

ILW wrote: »

I think there is a little mre to this than meets the eye.

me too can you tell us more

cloggii

I wrote to MBNA regarding the interest rate I was being charged (34.9%). I asked them to refund some of the interest I had paid as under OFT guidelines the excessive interest was unfair. MBNA refused to refund any interest to me.
I then took my complaint to the banking ombudsman who advised MBNA to refund all interest that I had paid since my credit cqrd had been opened, plus a goodwill gesture payment. My refund in total was £3044 !. Nothing untoward happened, I just took the time to complain.

NickX

Hmmm, you appear to have done very well. Well Done.

If 34.9% is deemed excessive enough to warrant a refund of all interest payable, then the likes of Vanquis could potentially be put out of business when all their customers get refunds.

I wonder if MBNA made some sort of error in your case (perhaps charging you incorrect interest rates) which could leave them open to substantial legal challenges and as a result the ombudsman advised them to refund your interest in its entirety.

Whatever happened, I think the beers should now be on you :beer:

exel1966

cloggii wrote: »

I wrote to MBNA regarding the interest rate I was being charged (34.9%). I asked them to refund some of the interest I had paid as under OFT guidelines the excessive interest was unfair. MBNA refused to refund any interest to me.
I then took my complaint to the banking ombudsman who advised MBNA to refund all interest that I had paid since my credit cqrd had been opened, plus a goodwill gesture payment. My refund in total was £3044 !. Nothing untoward happened, I just took the time to complain.

You could win an award, best fiction writer 09, and be on the shelves in WH Smith soon ! :rolleyes:

INT1

Wow what a result, I bet they didn't like to refund you the interest, serves them right for charging a whopping 34.9% !

EarthBoy

jonesMUFCforever wrote: »

This does seem to be a little unbelievable if you ask me.

I don't believe this story either. I could understand if the ombudsman had ordered MBNA to repay some of the interest if they judged that it was excessive, but certainly not all of it. Why would you be so special as to deserve not only three years interest free purchases, (which is what it amounts to) but also a good-will payment for inconvenience on top?

NickX

There is more to this than we have been informed of - I am sure MBNA have made more of a !!!!-up than simply charging extortionate interest rates for the ombudsman to conclude that ALL interest paid should be refunded.

cloggii

Every single penny of interest was refunded - I posted my experience to help other people in the same position as I was. I did'nt do it to waste their time -this is 100% true and I have the money in my bank account to prove it !. Maybe MBNA have been doing something untoward, the ombudsman seemed to think so in my case.