Mbna!

Moptop

Dear All

This is my first post, so please excuse my complete financial ineptitude (which will have Martin jumping up and down!) And bear with me as it's long...

I had an MBNA credit card when I was a student and ran into difficulties with it: my payment would be classed as a day late (often the bills arrived only two days before the payment date so you had to be speedy at opening mail); a late payment fee would be incurred, which in turn created an over your limit payment. I remember one month I paid £300 - none of which came off the balance. As soon as I started work, I paid the card off in full and was relieved to have no further dealings with MBNA.

I also had an RBS "Caring Card" with an interest rate of around 15%. The balance (of around £1300) was being paid off in chunks - although not very large chunks - each month.

Then MBNA took over the Caring Card account. The interest rate went up and up and the same old tricks of bills arriving very close to the payment date started up again. After being hit with late payment fees again, I set up a direct debit to ensure that at least the minimum payment would arrive on time each month. Nothing was being spent on the card (I'd cut it up), and the balance was (very) slowly reducing.

Now the shameful admission... I didn't open the bills from MBNA as I knew the payments were being made - until last week when, out of curiosity, I opened an MBNA letter. I found out that I was being charged a £12 late fee - and these charges had been going on monthly since Feb 2008 when a DD had been declined. (My sessional contract at work was processed a month late that year). My assumption that MBNA would take whatever payment was owing from my bank account was erroneous. So, out of a payment of £48.50, only £2.10 was coming off the balance. Oh, and MBNA had hiked up the interest rate to 34.9%...

MBNA agreed to refund 12 months of the late fees - so credited my account with £144 last week. I know I have a personal duty to check my credit card statements, but argued that they had a duty of care to the customer - clearly after 22 consecutive late fees it must have been clear that THIS particular customer had no idea she was being charged.

I asked MBNA to refund the interest which had been charged when my the additional £12 per month wasn't reducing from the balance but they said "They couldn't calculate the interest" - gosh, a credit card company not being able to calculate interest?!

Anyway, I paid the balance off on Friday and hope to have no further dealings with MBNA. Anyone else had problems with this company?

co123456

I've never had any problems with MBNA. They one of my fave credit providers. High limits, 0% fee frees, and low minimum repayments make them the Stoozers friend.

Moptop

That's interesting, because I was talking about this with two friends yesterday, both of whom had had bad experiences with MBNA taking over credit cards and hiking the interest rate up dramatically. The brief notice period between the arrival of statements and a late fee being incurred was also a common experience.

Clearly if you "stooze", you manage your finances very efficiently!

chattychappy

I've found MBNA great - decent credit limits, good online system, can pay online etc. Of course the real test is when something goes wrong - and that's not happened to me (yet).

It seems they refunded the charges to you - all you paid was the 34.9% interest rate. Yep, rather high but not ridiculous considering what happened.

I doubt whether any other provider would have acted differently.

michaelvintner

I don't have a problem with MBNA. Decent limits and one of the best for offers. Got to admit the statements do arrive close to the patment dates but I have always had plenty of time to pay.

You can always registered online and pay that way or set up a direct debit.

Moggles_2

If you decide to take out another credit card (assuming you can get one), for goodness sake register your details on the new provider's website. Most card companies provide adequate online services. There's no need for anyone with a pc to rely on postal statements.

If you don't do this and never check mail either, you'll soon be in the same position with the new lender. A credit card that operates without attention of any kind from its user, has yet to be invented.

Dabooka

Problems with MBNA? SOunds to me you've done well out of them, you've had your fees refunded after all. It's your job to make payments on time, and blaming the postal statements is a bit lame. Why on earth after the first time you didn't make the DD up is beyond me, but that's your choice. Basically, I don't think you have much to be unhappy about!

Moptop

I've had some of my fees refunded - 12 months out of the 22 months. I didn't realise I'd been charged a late fee - and, yes, as I said in my original post I know I was at fault for not checking my statements. Of course I would have made up the original DD - I'm an idiot but not quite as bad as that! My assumption when I set up the DD was that MBNA would take whatever money they needed each month to cover the payments, so I wouldn't have to worry about late fees etc.

I don't want another credit card - but interestingly enough was offered THREE in the 30 minutes it took me to walk between banks paying off MBNA and an M&S storecard.

Moptop

If you read my original message, I admit I am at fault. But if you think MBNA hiking the interest rate from 15% to 34.9% is fair, then who am I to argue?

Dabooka

Moptop wrote: »

If you read my original message, I admit I am at fault. But if you think MBNA hiking the interest rate from 15% to 34.9% is fair, then who am I to argue?

Hi there,

I know you put your hands up and take responsibility, hence me saying you've done well to get fees returned when you acknowledge it's your fault (all or some of the fees is irrelevant). With regards to the APR hikes, unless you've been living in a cocoon for the last 2 years that shouldn't be a shock to you, especially when you'll be perceived as a "bad" customer. I'm not for a second saying it's fair punishing those who are struggling, but it's not a new thing either.

Ultimately, I'm still unsure what the purpose of the post was. You've done well to get some fees back, and as you tok your eye off the ball you really have little room to complain IMHO.

jpwjpw

MBNA do seem to be a lot harsher than most other credit card companies. From raising the interest rate to 34.9%, having a long period between payment dates and statement dates and taking much longer to process card payments.

You were a bit silly to not open your statements though. Most other credit card companies would have rang you to ask where the payment was.