MSE News: MBNA to end 'order of payments' credit card stealth fee

splatt30

Anyone know if they will keep to their current T&Cs with regards to special offers at 0%. At present if you have several offers running at 0% the money paid goes to the offer ending first. I'm juggling 3 seperate end dates at the moment. Know exactly what needs paid to avoid any interest, when but will be very irritated if they move the goal posts.

twist-and-shout

Splatt30- Im afraid from what i understand (i work for MBNA and we have had a run through of this) the goal posts will be moving.

So at present if you have more than 1 offer at 0% (or any other promotional rate) they will allocate the repayments to the one that expires first.

Changing to

Payments will be allocated to repayments at the higher rates first. If you have more than 1 offer at 0% then they will allocate the repayments to the one with the higher standard rate first, if they all have the same standard rate then it will be to the 0% that expires first.

splatt30

Thanks Twist-and-shout. I've sent an email from my account page for clarification and will phone if don't get decent reply. I think the BT standard rate will probably be higher, so if they confirm what you have said I will have to make sure the purchases (which are supposed to be 0% until Nov and Feb respectively) are cleared by September 1st in order to keep the BT and avoid paying interest.

I wonder though given that these offers were made and taken up under the current T&Cs they would hold those for me?

Flint8

This was sold as a good solution. MBNA buys your debt from another company and then (in a manner that our dear FSA can not even control or intervene) , they MBNA, charge all the interest that the other company would have charged anyway but they can not even indicate to you how your 0% balance and your Interest bearing balance are being managed and reduced as you make monthly payments.
Even on their statements they write - reduce your repayments by transfering a balance - all lies.
It is about time that the FSA and the ombudsman rectify this and prevent financial institutions doing this to the public.

Flint8

All payments go against highest interest charged account first - this was confirmed after a 2 hour marathon session over the telephone - especially with a company that has no branches where a person can talk to someone face-to-face.

CannyJock

Flint8 wrote: »

This was sold as a good solution. MBNA buys your debt from another company and then (in a manner that our dear FSA can not even control or intervene) , they MBNA, charge all the interest that the other company would have charged anyway but they can not even indicate to you how your 0% balance and your Interest bearing balance are being managed and reduced as you make monthly payments.
Even on their statements they write - reduce your repayments by transfering a balance - all lies.
It is about time that the FSA and the ombudsman rectify this and prevent financial institutions doing this to the public.

Given that the MBNA minimum payments are 1% of the amount outstanding, it's very likely that people could reduce their repayments by transferring a balance from another card that has higher minimum repayments. Doesn't say that it'll mean they pay less interest Your payments will be allocated to your balances as defined by the allocation of payments on the back of each statement.

I think you've used a product that you didn't completely understand by the sounds of it. If it's any consolation, that's what this site is here to help educate people about.

You didn't think that MBNA were a registered charity unlike those other nasty credit card companies who only want to make money, did you?

CannyJock

Flint8 wrote: »

All payments go against highest interest charged account first - this was confirmed after a 2 hour marathon session over the telephone - especially with a company that has no branches where a person can talk to someone face-to-face.

You sure?

https://www.mbna.co.uk/apply/UKCCapp/Ctl/link?eid=48575E07

Not what their current allocation of payment says.

The_Ranger_2

It's about time, maybe now the CC companies will look at the ridiculous charge of around 3% for simply using your card abroad. Everyone should get together and force the CC companies to drop this charge now.

chattychappy

The_Ranger wrote: »

It's about time, maybe now the CC companies will look at the ridiculous charge of around 3% for simply using your card abroad. Everyone should get together and force the CC companies to drop this charge now.

Everybody could get together and use Post Office CC, Zero or Nationwide (up to 1%)....

I've come to the conclusion that the UK has the amongst the world's laziest consumers (present company excepted, of course)!