What happens if............

pioneer31

you apply for a card, agree a BT with them etc but do not sign the consent form when it arrives?

I have applied for MBNA card (first time customer) and they have hit me with a £35 transfer fee, I questioned it but got nowhere. All I want to do now is do away with them. In fact I want to do away with credit card tarting - I'm tired of being conned/misled. Barclaycard gave me £1200 credit limit and now MBNA have given me £3000 at 0% for 9 months and a £35 fee.

It's not worth the bother, because basically I have a card which I can't purchase on (MBNA) and my Barclaycard which can't be purchased on because I have to keep it maxed out to make it worthwhile having at all (blinding 40 quid a year interest WOW)

So if I fail to sign, can they charge me anything?

40079

But £3000 at 5.5% for 9 months will more than cover your £35 fee won't it?

moana

Well £3000 for 9months gives you a profit of £100 ish after tax.

When you take into account that you have to repay a min of £60 per month ish then the £100 drops to around £88 ish, not exact figures.
Take out the £35 charge and you make a profit of £53 ish.
Better than a kick in the pants but makes it look less appetizing than first glance.

Means you get around 2% return on your £3000.

Anyone check those figures for me.
They won't be far wrong :-[ I hope.

david78

You only need to repay £5 a month to MBNA don't you. Check your T&Cs.

david78

If you use your 2% repayment a month, you get about £83 assuming 5% AER (4% net).

Means you get around 2% return on your £3000

No you dont! You make it on their money ;D.

johnllew

You only need to repay £5 a month to MBNA don't you.

Yes, provided you're on a 0% promotion and you haven't incurred any fees/charges.

david78

Yes, provided you're on a 0% promotion and you haven't incurred any fees/charges.

The £35 transfer fee doesn't count though!

Milarky

Let me guess, David, last name "Ruleof"?

So that's 98% of £3,000 = £2940 borrowed plus £35 fee = £2975.

£2940 on deposit for 1 month +28days
£2900 remaining after first repayment, then [at months]
£2895 [4], £2890 [5], £2885 [6], £2880 [7], £2875 [8] and paid off at month 9.

So you have an average oustanding balance of

£2875 x [9/12] + £5 x [(8 + 7 + 6 + 5  + 4 + 3)/12] + £40 x [2/12] = £2156.25 + £13.75 + £6.67 = £2176.67

4% of £2176.67 = £87.08 less £35  = £52 pheww

moana

Does that mean my rough figure of £53 was quite close to the actual.

I am impressed

johnllew

The £35 transfer fee doesn't count though!

IME, it does. Ist payment after the fee is imposed is £40 (£5 + £35).

david78

Yes John. Its then £5 per month after that.