Scam by the Card Companies - minimum payments by DD

td_007

scottyb46 wrote: »

....
We have a direct debit set up to pay the full amount on an MBNA card. The direct debit is still valid, it appears on our online banking as valid and so on. It was a while (about 10 months) since the card was used when it came out of hibernation last October and was used. As a direct debit was in place we did not do anything to make a payment. When the statement after the one with the puchases on it came showing that no payment had been taken, plus interest and a late payment fee we were pretty miffed. No matter I thought, a phone call will sort this out. How wrong can one be? Apparently it is MBNA policy that if a card has not been used for 6 months then they cancel their direct debit mandate and do not collect automatically. They refused point blank to refund charges and interest, despite not having notified us that the direct debit mandate had been cancelled. They were unable to provide a good explanation as to why it was still valid according to our bank.

I will be writing to the financial ombudsman about this, but Martin if you want to highlight this latest skullduggery then please go ahead - this is nothing short of a con in my opinion and I would rather embarrass them and their double standards than have the money back to be honest. I would particularly enjoy anyone from MBNA attempting to defend this in public, ie saying to people set up a DD so you don't miss a payment, unless they want to claim some fees from you of course.

You might want to complaint by writing in and demanding the return of charges. Points to make: 1. nowhere does it state that DD will be canceled if not used in 6 months and 2. if they can confirm the setting up of DD in writing, why do they not do the same when they cancel? Going direct to the ombudsman might be a bit premature at this state - once you have their refusal in writing you will have a better handle on the reason they give.

oscar52

eschaton wrote: »

Not really looking for answers as can't be arsed with people that can't manage their finances.

With all respect, I have just double checked my MBNA statement as I was sure it didnt mention collection by DD - and one is set up. Its not a question of being unable to manage finances, more of the underhanded practices of the credit industry.

wayne99

why did you say

Is this 6 month thing true ?

Is it in the T&C's ?

Answers required...

but you do not require answers ?.

"can't be arsed with people that can't manage their finances." where has that come into the equation ? it has not, and if you can be arsed then what are you doing posting on here ? go away and have an attitude adjustment.

CannyJock

eschaton wrote: »

Not really looking for answers as can't be arsed with people that can't manage their finances.

Ah, so you're here to help those who don't need assistance?

Need a bigger shovel to keep digging?

cooltt

Quite right this is a load of boll*x!!
Yet another scam from MBNA.

How come if you cancel the DD there's a letter on your doormat before you've turned your pc off! BUT when they cancel it, fingers crossed you won't notice.

I bet that's exactly what their greasy execs thought when they had their "how can we rip off our customers even more" brain storming session.

I think we can expect more scams of this nature from all lenders in the coming months.

td_007

eschaton wrote: »

Not really looking for answers as can't be arsed with people that can't manage their finances.

Why do you think that people who can manage their finances need you?

scottyb46

eschaton - I do hope that nothing of this nature happens to you, as I fear you may receive precious little sympathy. You certainly wouldn't share it with anyone in order to help them out.
oscar52 - I can assure it did happen. Without going in to detail I am no mug (despite the evidence to the contrary here) with finances, iin a former role I helped set up Capital One in the UK, so I know exactly how credit cards work, and how long we used to spend trying to ensure we maximised income from our customers.
I just think this is rather underhand and pushes the rules to the limit, and whilst I appreciate this particular scam will not apply to a lot of people, the kind of people who will be affected will be those who generally don't use their cards a lot and will quite unwittingly be caught by this - think of the elderly who might book their Saga holiday once a year, or perhaps use their credit card to buy house or car insurance once a year.

You have to admit it's quite a brilliant trick, but a trick is exactly what it is and the people it will catch are those who use their cards infrequently. I am just hopeing that no-one else gets caught.

oscar52

scottyb46 wrote: »

oscar52 - I can assure it did happen.

As Iabove, I am not disputing the fact that it didnt happen, merely suggesting reasons why it may have happend

Without going in to detail I am no mug (despite the evidence to the contrary here) with finances, iin a former role I helped set up Capital One in the UK

Surely if you helped set up Cap one, you should be aware of the regulations, including AUDDIS. While there has been some change, I dont think it has been that drastic recently.

Moggles_2

scottyb46 wrote: »

It was a while (about 10 months) since the card was used when it came out of hibernation last October ...

Are you quite sure the card was inactive for 10 months and not 12 months?

I ask because my own MBNA card came out of hibernation in September 2009 (after some 8 months) and the DD had remained active. On a previous occasion when I left the card unused for 12 months, MBNA wrote to point out the regulations and I was able to reactivate in a few minutes by phoning the number at the foot of the letter.

Of course things can change over time and MBNA could have moved the goal posts a month after I started using my card last September. Then again, despite the high volume of complaints about MBNA, I can't recall any along these lines from other forum users.

eschaton

scottyb46 wrote: »

eschaton - I do hope that nothing of this nature happens to you, as I fear you may receive precious little sympathy. You certainly wouldn't share it with anyone in order to help them out.

Not a chance of it happening to me. Unlike you, I am very much switched on financially.

Also don't do direct debits for credit cards, no need.

They are only a sefety net for people that don't know what they are doing in the first place.