Next Months estimated Interest 0% - but charged £26

Options
MBNA statement said clearly Next Months estimated Interest 0% - but we were charged £26 despite paying more than the minumum amount on time.

They say that the statement was produced whilst we were in the zero % period. The fact that the next month interest was due to be charged was beyond there system apparently!

This was back in March, the law has now changed to make this illegal, but they refuse to refund this and another amount of £11 charged the next month in a similar manner.

Spent 30 mins on phone and got nowhere (well they took of 11 penc ethat have been charged erroneously in May and June!)

What should I do?
«1

Comments

  • bouncydog1
    bouncydog1 Posts: 2,696 Forumite
    First Anniversary First Post Combo Breaker
    Options
    Your post is a little confusing - were you on a long-term 0% deal? If not and you do not clear your account in full by the due date you will get charged interest on the balance (you said you paid more than the minimum payment).

    If you are referring to the law changing whereby highest interest rates are settled last by payments, then I understood that the law was due to change but had not done so yet.

    People need a little more background to be able to provide you with information relevant to your question.
  • tomphillips-uk
    Options
    we were on a 12 month % zero interest deal.

    The march statement (our 12th month) said "Next Months estimated Interest £0"

    yet when next statement came in it said we owed £25 in interest as it went back to normal rate in April, despite what it said in previous statement, which I think is unfairly misleading.

    It never said anything like "based on your current interest rate", or "interest may be acrued next month if your rate is due to change".
  • stephane_2
    stephane_2 Posts: 3,076 Forumite
    Options
    You were on your last month of interest free, so of course they have to start charging interest...nothing wrong there and has absolutely nothing to do with a law which does not exist....
  • apt
    apt Posts: 3,190 Forumite
    Name Dropper First Post First Anniversary
    Options
    It is really up to you to police when the 0% deal is expiring and to make sure you clear the balance in time.
  • tomphillips-uk
    Options
    We would have done if the statement had not said:

    "next months esitmated interest £0"

    why do they print that if it is not true?

    apparently they are not allowed to print that anymore if it is not true (So MBNA rep said) from May onwards
  • dtaylor84
    dtaylor84 Posts: 648 Forumite
    First Anniversary Combo Breaker
    Options
    The Important Information section on the back of my last MBNA statement says:
    Estimated interest is shown on the front of your statement. This is the interest you will be charged on your next statement if you pay the agreed minimum amount and this reaches us on the last day for payment. It is for guidance only and will not be accurate for example if you make further transactions, you incur fees, your promotional interest period ends, your payment due date changes, or your interest rate changes.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 17 August 2010 at 7:34PM
    Options
    I actually have a little sympathy for the OP's position here.

    The post above (#7) rightly draws out the letter of the agreement, and doubtless MBNA will stand by that for a time.

    But the reason for card issuers advising card holders of their estimated interest charge is to allow them to budget accordingly. MBNA's failure to build a system that can cope with moving from a promotional rate to the standard rate has cost the cardholder over £25.

    Is it fair? I really don't think so. Equally, it's probably not a deliberate trap. More likely a system that was put in to place quicly without great thought being given to the actually outcome for the customer where "non-standard" circumstances exist. Sometime fixing a small problem like this can be a lot harder than it really should be.

    What should the OP do?

    1) Complain politely but verbally.
    2) Complain in writing, reminding them of the date of the orginal verbal complaint and throwing in phrases like "treating customers fairly", asking them to reimburse interest and phone call costs - or alternatively to issue a letter of deadlock as you are prepared to go to the FOS.
    3) Escalate the complaint to the FOS. I'd say there's around a 90% chance of success.
  • izools
    izools Posts: 7,513 Forumite
    Combo Breaker First Post
    Options
    But the T&C very clearly state that this figure will not be accurate in respect of promotional rates. I don't see how the OP has any way to win the argument - they agreed to this term. I can empathise that this is inaccurate and unhelpful but that doesn't alter the legality of the argument :(
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 17 August 2010 at 7:47PM
    Options
    izools wrote: »
    But the T&C very clearly state that this figure will not be accurate in respect of promotional rates. I don't see how the OP has any way to win the argument - they agreed to this term. I can empathise that this is inaccurate and unhelpful but that doesn't alter the legality of the argument :(
    But fair behaviour to customers should be to provide accurate information to them.

    Simply stating in small print on the back of a statement that "the figure on the other side might be a load of tosh this month" isn't good enough.

    It is an estimated figure. To estimate £20 and have the real figure come out at £25 would be poor, but probaby acceptable. But to estimate £0 isn't.

    Additionally, the FOS will make a ruling based on fair and reasonable, rather than the letter of the law. Which is why I think it's worth the OP pursuing.
    We would have done if the statement had not said:

    "next months esitmated interest £0"

    why do they print that if it is not true?

    apparently they are not allowed to print that anymore if it is not true (So MBNA rep said) from May onwards
    Sounds to me like they've had their wrists slapped by a regulator or ombudsman, and been forced to deal with the issue. Stand your ground and you will, eventually, get your money back in my opinion.
  • izools
    izools Posts: 7,513 Forumite
    Combo Breaker First Post
    Options
    opinions4u wrote: »
    But fair behaviour to customers should be to provide accurate information to them.

    Simply stating in small print on the back of a statement that "the figure on the other side might be a load of tosh this month" isn't good enough.

    It is an estimated figure. To estimate £20 and have the real figure come out at £25 would be poor, but probaby acceptable. But to estimate £0 isn't.

    Additionally, the FOS will make his ruling based on fair and reasonable, rather than the letter of the law. Which is why I think it's worth the OP pursuing.

    Is providing a 0.25 Megabit connection on an advertised "upto 20 meg" product fair? No. But th ISPs get away with it. Because they state that it is estimated.

    I fully appreciate that it is frustrating but none of this negates the fact that there is information from more than one source provided by the credit card company that the figure isn't to be trusted or used to base budgeting on. I.e. it's an estimate, and inaccurate in respect of promotional offers.
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.6K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.8K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards