Late payment penalty for early payment????

CLAPTON

Bubbeline wrote: »

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!

It's 'normal' practice that all transactions (both spending and payments) between two statement dates appear on the second statement and to be considered part of that months activities.
I'm not sure its written down as such but it would be most confusing it it weren't so and I'm sure endless people would complain.

by way of example

suppose your statement dates were 5th of the month
and your feb statement was for 1,000 and your min payment was 20 to be paid by the 19th of feb

now suppose you paid £20 before the 19th and then you paid £980 on the 28th
i.e. you have now reduced your balance to zero

if they then charged you interest for february based only on your first payment (i.e. they charged you interest on 980) as they held over your second payment until March you would probably be writing here to say how outrageous it all was that you were charged interest when your balance was zero as it was 'obvious ' you would have wanted the second payment to be included in februarys acccount.

HouseHuntr

Bubbeline wrote: »

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!

Here we go again, someone who couldn't be arsed to read the T&C's, couldn't be arsed to read statements for 7 months and now is annoyed and surprised to get charges. :rotfl:It must be Sunday !!!

HouseHuntr

immoral_angeluk wrote: »

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

Raise a complaint for being dim and because 'I' couldn't be arsed to look at my statements earlier ? :rotfl:Like I said, it must be Sunday !! Still, schools out soon and we can look forward to loads more !

BugsyBrowne

Househuntr why do you and another small little group on here always give people !!!!!!,none of you have a clue so why do it!!

CHALLISAVENUE

star-fire wrote: »

Househuntr why do you and another small little group on here always give people !!!!!!,none of you have a clue so why do it!!

Star Fire,im a virgin here and i notice you seem very angry judging by your posts not just on this thread but on others :D:D:D


Love Kelly;)

chattychappy

Bubbeline wrote: »

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.

These are some T+Cs I have from MBNA, 2006 as updated to Jan 2009 and re-ordered as appropriate:

Definitions
statement period - the period starting on the day after your last statement date and ending on your next statement date. The statement period for your first statement starts on the date your account is opened.

7b We will send you a statement showing the payments you have made to us [...] since your last statement.

8a The minimum payment you must make will be shown on your monthly statement.

1b The minimum payment that you must pay by the payment due date shown on your statement each month will be as follows:
- if the balance shown on your statement is less than £25, your minimum payment will be the total amount of the statement balance; or
- if the balance shown on your statement is £25 or more, your minimum payment will be whichever is the greater of: £25; or any charges for Payment protection Cover, interest and default charges plus £5

7c You must check your statements. If any item in a statement seems wrong, you must let us know as soon as you can.

I think it's pretty clear. MBNA works by "statement periods". As per 7b all payments made during such a period is shown on a statement produced at the end of that period. 8a says the minimum payment details is given on that statement and 1b how it is calculated (and depends on the balance).

So your "early" payment is credited to the same statement period as the previous payment - what you call the "previous statement period".

This may not be as explicit as you wish. You are trying to propose alternative periods that start with the day after the "due by date" - ie once you're past that due by date, payments are counted in a period ending with the next due date. Given what MBNA have written already, it's not up to them show they have written something specifically to deal with "early" payments as you define them. The default "statement period" applies and it's just a question of whether you have complied.

Your T+Cs may be different of course.

Not saying you shouldn't argue it. If you do, then try on the grounds the fees/charges/interest are disproportionate to the transgression, it would have been fairer for them to have made better efforts to contact you (eg by phone) rather than charging you for so many months etc or maybe that the wording isn't clear (though I think it's clear enough).

Really I think it's a lost cause to try and establish that MBNA aren't entitled to do what they have done.

Also bear in mind 7c - you were breaching the terms by not checking your statements and this is a bit of a catch-all for MBNA.

Bubbeline

Many thanks to those of you who have provided some helpful advice - I have managed to negotiate half the full charges to be refunded. To those of you who simply provided abuse, unfortunately us mere mortals can't always live up to your supreme standards. However, we can learn by our mistakes.

chattychappy

Well done, I think that that is a reasonable outcome in the circumstances.