MBNA - payments in addition to direct debit

theesel1994

I owe around £3400 on an MBNA credit card. This is the first month since I did a balance transfer. I've just looked at the online statement and noticed the minimum payment due is only £25 but it is due on a Saturday. I was expecting a minimum payment of around £100 (3% of the balance).

Two things are worrying me.

If I leave it as things stand and let my direct debit pay the minimum amount - will I get a default charge of £12 for late payment with the direct debit being on the Saturday. (Up until reading stories on this forum I would have thought common sense would have dictated that the payment be taken out on the Friday - but now I'm not so sure).

If I make a payment of £100 now would this wipe out the direct debit instruction and I have to watch my credit card statement and payment due date every month - defeating the object of taking out the direct debit in the first place.

I'm now convinced that credit card companies will use any excuse to make me break the rules and lose out on the 0% rate till March.

CLAPTON

does the statement explicitly say the payment will be deducted by direct debit?

Fruit_and_Nut_Case

£25 is a pretty standard minimum payment for an MBNA card these days. If you have budgeted £100, put the remaining £75 into a cash ISA and withdraw it all just before the end of the 0% period.

If you have a DD set up it is MBNA's responsibility to get the cash at the correct time.

Well done for thinking about how you might fall foul of the T&C's, though.

theesel1994

CLAPTON wrote: »

does the statement explicitly say the payment will be deducted by direct debit?

The previous (paper) statement states "your minimum payment of 25.00 will be collected from your nominated bank by direct debit on or after ............" I was just worried they would use this as a way of getting out of the 0% deal and them have me trapped on their normal rate. If I won't get penalised then I'll wait until they have taken the minimum payment of £25 and then pay another £75 the day after (well, the following Tuesday just to be sure).

theesel1994

Fruit_and_Nut_Case wrote: »

£25 is a pretty standard minimum payment for an MBNA card these days. If you have budgeted £100, put the remaining £75 into a cash ISA and withdraw it all just before the end of the 0% period.

I thought it was the minimum of £25 or 3% - must have misread their terms and conditions. As for putting money into a cash ISA - any extra penny I have will be going to the credit card. I just wish I could be sure that extra payments didn't cancel out the direct debit. I have lost all trust in credit cards these days.

twist-and-shout

The purpose of a Direct Debit is so you don't miss a payment.

Your payment will be credited on your due date by MBNA and collected from your bank on or after your due date, so as your due date is a saturday it will be deducted from your account on the monday.

Ifyou do want to pay £100 a month but your not keen on putting the aditional amount into an ISA then make arrangments for a standing order of £75 to be made along side the Direct Debit. Also there is no need to worry about it reducing the D/D amount either as MBNA will take a D/D regardless of any overpayments you make

bengal-stripe

theesel1994 wrote: »

I've just looked at the online statement and noticed the minimum payment due is only £25 but it is due on a Saturday......If I leave it as things stand and let my direct debit pay the minimum amount - will I get a default charge of £12 for late payment with the direct debit being on the Saturday.

If the statement says explicitly:

The minimum payment of £25.00 will be collected from your nominated bank by Direct Debit on or after …………”

then there is nothing to worry about. If it does not say that, then the DD is not functioning yet and you have to make a manual payment.

MBNA has sometimes “payment due “ dates falling on a Saturday or Sunday. My payment for this month was due on June 5th (Saturday). In this case, the DD will be taken on the Monday, but the payment will be credited to your MBNA account with Saturday’s date.

poppy_f1

theesel1994 wrote: »

If I make a payment of £100 now would this wipe out the direct debit instruction and I have to watch my credit card statement and payment due date every month - defeating the object of taking out the direct debit in the first place.

no they will still take the DD as well

Sholtis

MBNA is delighted to be launching this market-leading product which offers no balance transfer and money transfer fees as well as a great low rate card for balance transfers and money transfers , Greg Reed, president of MBNA Card.

Fruit_and_Nut_Case

Sholtis wrote: »

MBNA is delighted to be launching this market-leading product which offers no balance transfer and money transfer fees as well as a great low rate card for balance transfers and money transfers , Greg Reed, president of MBNA Card.

Non sequitur, anyone?

CannyJock

theesel1994 wrote: »

I owe around £3400 on an MBNA credit card. This is the first month since I did a balance transfer. I've just looked at the online statement and noticed the minimum payment due is only £25 but it is due on a Saturday. I was expecting a minimum payment of around £100 (3% of the balance).

Depends when the balance transfer was done in relation to your last statement.

Don't get confused between what you see online "today" and the balance on your last statement

If you pay £100 today, they'll still take the £25. You'll be fine.