Mbna

scottygees

I have a £6000 limit on my MBNA card which is up to its limit.I have always paid my minimum by direct debit so not to miss a payment,I was therefore shocked to find that my account had gone over its limit(i had spent nothing on the card) due to interest alone.Surely if I set up a DD my minimum payment should cover any interest that may be added so I don't go over my credit limit.Subsequently a £20 overlimit fee was added. I queried this and they said that if I pay the amount the card had gone over its limit by(£8.48),they would refund the £20 fee. Got my statement again today the £8.48 had not been credited.With all due respect the overlimit fee had been refunded,but the same thing regarding DD and interest has happened again and another £20 overlimit fee has been added.I spoke to someone who just wouldn't back down said they were in the right and I was in the wrong and really talked down to me,wouldn't even let me speak to a supervisor,he said he was an accounts manager,(manning the phones in a contact centre!!!).I am £4.18 overlimit which I paid to get balance down to £6000.

I am really just gettin this off my chest as it has really ****** me right off today. I am fortunate I will be in a position to clear the card once and for all in a couple of weeks and so won't have to deal with them again.

I have read loads of things about MBNA and my dealings just back up other peoples experiences.Just to think the guy who runs MBNA (Lerner) is thinking of buying Aston Villa who I subsequently support for my sins.Lets hope the team can perform better than the credit card!!

YorkshireBoy

scottygees wrote:

I was therefore shocked to find that my account had gone over its limit(i had spent nothing on the card) due to interest alone.Surely if I set up a DD my minimum payment should cover any interest that may be added so I don't go over my credit limit.

This is probably one for Milarky, or one of the other 'mathematicians', but my understanding is that the MBNA minimum payment is...

The lesser of:

• 2.25% of your statement balance, or
  
• Charges for PPI + interest + charges & fees + £5

So, the second calculation method must ensure that the balance reduces month by month - surely?

peawack

Another 'happy' MBNA customer ! Do what I did, get shut as soon as possible.
There will be one or two regular defenders of the MBNA faith who come on here to say how good MBNA are, but there are thousands more like you and me.
I didn't know it was the bloke trying buy Villa ! More trouble ahead.

Milarky

If a DD is taken then it is always taken before the next statement (on which the interest is added). In principle you cannot go over limit therefore. But if you spend right up to the limit the added interest on the following statement could (conceivably) be £5 greater than the previous month's added interest - and then your min payment wouldn't draw you far enough below your limit for the interest to pop you overlimit.

For example:
Being left £8.48 over limit: Assuming that were all due to interest on the differential balances over held two months it might be that you went from (say) £4800 balance to £6000 paying (say) 1.31% interest on these balances in each month? The min payment on '£4800' will be about £68 (£63 + £5) so if the interest in the following month was greater because the balance was greater - say at an average of £5850 - and stands at '£6000' on the next statement date that would result in an interest charge of £76.50 - enough to exceed the min payment by £8.50

As for balance transfers on new MBNA accounts this should never arise because they only allow you to go straight to 98% of your credit limit (although the 2% fee might make things a bit tight - maybe that's '95%' these days?)

LongDongDave

peawack wrote:

There will be one or two regular defenders of the MBNA faith who come on here to say how good MBNA are, but there are thousands more like you and me.

Yep, here's one. Been with MBNA nearly 5 years...no problems. This month offered me 0% until 1 April '07 (Abbey Card £15,900 limit) & OH 0% 1 May '07 (MBNA card £15,900 limit). Strange how the limits are the same when we earn different incomes? MBNA offer some of the highest limits, there's a credit squeeze at most other card providers. The transfer charge is capped at £50. The card i hate the most is egg (uncapped transfer charges)...here come the scissors...