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MBNA Promotional Rate Con!
TPR_2
Posts: 4 Newbie
in Credit cards
Hi Everyone,
My first post here!
Reason for writing: my wife just received her MBNA statement and in spite of being on a 0% rate promo code, she has been charged interest.
Prior to the introduction of the promo rate, we had made a few transactions. However, when we received the subsequent statement, we paid off in full all of those transactions which did not have the promo code against them. We thought we were doing the right thing. However, it now transpires that we should have paid off the outstanding balance prior to the introduction of the promo rate offer. That we paid it off before the balance due date on the statement does not matter.
Having phoned them up, we now realise that interest has been charged due to the order in which cc companies allocate payments, i.e. lowest rate of interest first. All the same, this was not made clear on the statement.
We hadn't even received the statement at the date when we should have paid the non-zero rated items. According to the call centre person we could have checked the outstanding balance ourselves! This strikes me as very sharp practice though perhaps I am simply demonstrating my naivety in these matters. We are now awaiting a callback from the MBNA manager.
Anyway, just wondered if anyone else has had a similar experience or can offer any advice.
Trading Standards? Or should we have been aware of the small print? Apparently, this is all explained in their terms and conditions.
Incidentally, my wife normally pays off her cc balances in full. It was only the 0% offer which prompted her to do otherwise (invest the money due elsewhere).
Thanks for any help, etc.
All the best,
Toby.
My first post here!
Reason for writing: my wife just received her MBNA statement and in spite of being on a 0% rate promo code, she has been charged interest.
Prior to the introduction of the promo rate, we had made a few transactions. However, when we received the subsequent statement, we paid off in full all of those transactions which did not have the promo code against them. We thought we were doing the right thing. However, it now transpires that we should have paid off the outstanding balance prior to the introduction of the promo rate offer. That we paid it off before the balance due date on the statement does not matter.
Having phoned them up, we now realise that interest has been charged due to the order in which cc companies allocate payments, i.e. lowest rate of interest first. All the same, this was not made clear on the statement.
We hadn't even received the statement at the date when we should have paid the non-zero rated items. According to the call centre person we could have checked the outstanding balance ourselves! This strikes me as very sharp practice though perhaps I am simply demonstrating my naivety in these matters. We are now awaiting a callback from the MBNA manager.
Anyway, just wondered if anyone else has had a similar experience or can offer any advice.
Trading Standards? Or should we have been aware of the small print? Apparently, this is all explained in their terms and conditions.
Incidentally, my wife normally pays off her cc balances in full. It was only the 0% offer which prompted her to do otherwise (invest the money due elsewhere).
Thanks for any help, etc.
All the best,
Toby.
0
Comments
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Yes you should be aware of the T+C's.
You have read your copy?0 -
Its called negative payment hierarchy (sp?) - basically as you have said, payments are out towards balances at lower rates - all cards except NAtionwide are exactly the same.No Longer works for MBNA as of August 2010 - redundancy money will be nice though.
Proud to be a Friend of Niddy.
no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date0 -
Cannot see why it is a con. They do not exactly keep their terms a secret.0
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Cannot see why it is a con. They do not exactly keep their terms a secret.
Maybe not a con but they are hoping (as was our case) that people won't be properly aware of the t&c's and make such a mistake. The person at the call centre said it is quite a common issue, not that they do anything about it.0 -
Not a con, nothing you can do about it, you should have been aware of their T&C0
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I agree, not a con but it does strike me as sharp that they expect you to pay a balance in full, ahead of a statement. By waiting for the statement before making payment, as I believe is customary, we now incur interest.
Oh well, we'll pay it off in full, cancel the account and won't get caught again. Live and learn!0 -
Saga operates the same 'fair order of payments'......all cards except NAtionwide are exactly the same.
http://www.saga.co.uk/money-shop/credit-card/fairOrder.asp
There may be others?0
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