Late payment penalty for early payment????

Bubbeline

I got an MBNA credit card last April, 0% on balance transfers for a year. I transferred a balance, and have duly paid well in excess of the min payment on a monthly basis ever since. I have just discovered that MBNA have charged me late payment fees since Sept 09, and removed the 0% rate at the same time, resulting in almost £600 of charges since.
This has happened because: my July statement said payment to be received by 23rd July, I paid on 13th July. Next payment (for Aug) was to be received by 21st Aug, I paid this on 29th July (ie after the cut off date for the previous statement and well before the cut off date for the next). However, MBNA took both payments to be for July (despite the cut off date of 23rd July being printed on the statement), and then decided this meant I made no payment at all for Aug. The result has been that every month since they have deemed my payments to be late, when in fact they have just been paid well in advance of cut off date.
I've called them, and been told that the cut off date printed on the statement is actually well before their actual cut off date - almost two weeks in fact, which has led to both payments being counted in one statement period. They have as yet been unable to tell me where this is written down or how I could possibly have known this. They have even said I've effectively been penalised with late charges for paying too early. Despite this, they are refusing to refund me my full £600, and have only offered to retun one month's fees (£12 late payment, £60 interest). Not surprisingly I've refused this!! :mad:
Where I'm at now is a manager is going to call me in the next 48 hours to discuss it, but I'm not holding my breath. I would like my money back, and any damage to my credit rating rectified. After all, I've paid over the amount required every month within the cut off dates specified.
Has anyone else experienced this? What are my chances??
All advice welcomed!

immoral_angeluk

Raise a proper written complaint, asking for statements and details of cut off dates for each month and when the payments were made.

chattychappy

You are talking in terms of cut-off dates, but this is not enough. You must pay after the statement has been generated and before the cut-off date for that statement. What has happpened to the statements? If you didn't get them in the post, can you check them online? Before speaking to them you need to determine whether it is MBNA's mistake or your mistake so you know how to argue it.

You said the August payment was to be received by 21st August, but you paid it on 29th July. I'm guessing that the statement might not have been generated by then - so any payment made would have been correctly applied to the July statement. It is irrelevant that it is after the July cut-off date. The cut-off date is merely the date by which a minimum payment must be received. Payments received after this date are not "held over" and applied against the minimum due for the following month. A statement is generated - you must then follow and not precede this with your minimum (or greater) payment.

It is quite incredible that this happened in August and you have only just noticed it. If it is indeed your mistake, I feel this will count against you. But it's still worth a try and certainly go for it if indeed MBNA did mess up.

Bubbeline

Thanks for this - yes I take your point re noticing it, all down to me. I was complacent in checking because I have never used the card for purchases and was just paying it off. Serious lesson learnt there though!
I have already printed off all the relevant statements, and have them at the ready. Re what you say about the cut off point, that's fine if it's been made clear somewhere - I can't find anything though.

Fruit_and_Nut_Case

Sorry to hear of your problem but this is yet another example why it is a good idea to set up a Direct Debit for the minimum payment.

CannyJock

Bubbeline wrote: »

Re what you say about the cut off point, that's fine if it's been made clear somewhere - I can't find anything though.

Have you found it mentioned that a payment made after the payment due date will be allocated against your next statement?

You won't find either mentioned.

You've unfortunately made an assumption and not checked your subsequent statements.

Good luck getting it resolved, but hopefully you've got a direct debit in place now.

chattychappy

Bubbeline wrote: »

Re what you say about the cut off point, that's fine if it's been made clear somewhere - I can't find anything though.

I do not have T+Cs in front of me. But my guess is that it says something like you must pay the minimum amount due shown on the statement by the date given.

If so, it's very clear. 1) you get statement, 2) statement gives amount due and by when, 3) you make payment

If you'd made a payment before the statement was generated then that payment would be shown on the statement and is not "in reply" to the minimum demanded. The statement speaks from the date of the statement - that's when the obligation arises. If your early payment had been enough, then they would have shown the minimum due as zero.

As for DDs, I manage perfectly well without them - but I do check my accounts roughly fortnightly. If you don't sign a DD, you must check statements AND must know when to expect them - if one goes astray it's still down to you to make the payment on time.

You cannot get your credit record changed if according to the rules of the game you missed a payment. One missed payment won't wreck your rating though.

benoit

I did exactly the same thing myself with a catalogue last year. I know it sounds a bit confusing but you can't pay in advance of the statement being produced and they will put a late payment fee on the account because the payment would have been added to the previous month.

They refunded the late payment fee but it was my mistake.

chattychappy

benoit wrote: »

They refunded the late payment fee but it was my mistake.

It seems in this case MBNA have refunded the £12 late payment penalty and £60 out of £600 of "charges" (I'm guessing the OP means interest).

I think that that is a reasonable start from MBNA, though the OP might be able to do better.

Bubbeline

Thanks to all for your help - I realise it's my fault that this has gone on for so long and hence the damage to my credit rating could have been prevented (because every payment after Aug has been deemed late). On that basis I've realised expecting the whole amount back is prob unreasonable and will try to negotiate something. However, if i had been aware of 'early' payments being credited to the previous statement period I would have paid later. I just want MBNA to explain where they have written it cos I can't find anything in the T&Cs. Big lessons learnt for me - DD in place and regular checking from now on!

cifpower

You must make at least the minimum payment every statement period. You didn't do this as you paid "early"