Are SBTs being stopped by MBNA

ti1980

I remember getting a letter ages ago from MBNA about how 'the transfer of money from their credit card to a current account' was to be known as a 'money transfer' and would attract an interest rate of 20-ish%:eek:

Now I can't remember if I received another letter saying something about this starting from October so was hoping that some moneysavers would be able to confirm this or otherwise.

I have just done an SBT with that card anyway (made them confirm it 3 times that it was going to be charged at 1.9% for 6 months) so if this is the case then that will be my last SBT from them.

Milarky

known as a 'money transfer' and would attract an interest rate of 20-ish%

........From part of the current MBNA terms and conditions (Platinum plus card):

16 Definitions
In this agreement, the following words and phrases in italic have the meanings shown next to them.
additional cardholder – a person you ask us to issue a card to, or to provide cheques to, for them to use on this account.
annual fee – a fee which we may charge each year for running your account.
balance transfer – a payment you ask us to make from your account to another financial organisation which is not a money transfer and which pays off or reduces the amount that is owed to them.
card purchase – any transaction (other than a cash transaction) under which you make a payment using a card (with or without the PIN) or card number.
cash transaction – a money transfer or any other transaction under which you receive cash or a cash substitute by using your card or card number, including foreign currency, traveller's cheques, postal orders, gambling transactions and transferring money electronically.
cheque transaction – any transaction in which you use a cheque to make payments using the account (the terms and conditions in the chequebook will apply).
default charges – any charges we add to your account under paragraph 3a.
handling fee – any charge we add to your account for balance transfers, cheque transactions and for cash transactions under paragraph 2c.
MBNA Group – MBNA Europe Bank Limited, its subsidiary and parent companies, any subsidiary of any of its parent companies and any person we transfer any of our rights or duties to in this agreement.
money transfer – a transfer of funds from your account to another financial institution other than into a credit card or loan account.
PIN – the personal identification number which we issue or approve to be used with a card.
service charges – any charges we add to your account for the services provided under section 4

It's a bit circular isn't it? I'd say they are preparing the ground by giving themselves the discretion to stop treating SBTs (to current accounts) as balance transfers in the future (Remember for how long 'we may charge a handling fee' appeared in T&Cs before they applied fees - first capped and then uncapped? It took them a while.) So we're not there yet but it may be just around the corner.

Anyway they are still offering credit card cheques under the same BT promo - which I suppose can't be a MT because you present them (they don't 'send' payment)

The_Boss

Would this apply if your card is in credit? Thats how it is used by many people to SBT.

brassmonkey001

I BT'd £3k from my MBNA card to my HSBC current account just a week ago with a handling fee of 2% i.e. £60.
HTH