How much will this cost me? :o(

toby_puppy

I've got an MBNA account with a 0% money transfer deal until June 2011, well I did have until my internet went down and my minimum payment reached them one day late.

I emailed to explain and ask them out of courtesy if they would reverse the £12 default fee, but they replied as under:

Thank you for your query. I confirm that an introductory rate of 0% p.a. for money transfers was applied to your account on 12th June 2010. However, this promotional offer was only valid whilst your account was up to date and within its credit limit. As the payment that was due on 29th November was not received until 30th November, the promotional rate has been removed. The interest rate reverted to the standard variable rate of 20.9% p.a. with effect from the day after your previous statement date. Regrettably, your promotional interest rate of 0% p.a. is no longer available on your account. However, as a courtesy I have applied a new promotional interest rate of 1.9% p.a. for the same duration. This rate will be applicable to your existing money transfer amount and will remain valid until the date that your June 2011 statement is produced, providing that your account remains within its terms and conditions. Many Thanks
Can anyone tell me how much extra this interest is going to cost from now until June? I am paying it all off in one go in June as I will have enough to do so. In the meantime I owe £1300.
How much interest will accrue between now and June, bearing in mind I am paying the minimum payment of £25 per month?
thanks

lisyloo

Let's assume you pay it off 8th June 6 months (you haven't said exactly when you'll be paying it off).

So the calucaltion required is
£1300 * 0.019 /2 = £12.35

You have been very lucky they have reduced the interest from 20.9% to 1.9%.

In future you need to either borrow someone else's internet (no neighbours?, friends? family? relatives? or colleagues?) or use an internet cafe.
OR don't leave it to the last minute.
Why couldn't you find internet anywhere?

Bear in mind you need to pay it off before the June statement when the interest increases.

YorkshireBoy

Well p.a. is per annum.

There is half a year between now and June 2011.

Half of 1.9% is 0.95%.

0.95% of £1,300 is £12.35.

As to making your payments on time, have you ever heard of direct debit? It's a great way of avoiding pitfalls such as the one you've experienced here.

You could try one last time with customer loyalty on 0800 783 1116, and see if they can reinstate the original 0% rate.

toby_puppy

referring to my previous post and replies, please take a look at the statement I received today - I am totally confused with the interest charge now! :(what should I ask them if I ring up? I wasn't expecting to be charged this much

Opening Balance 1303.00
Late Payment Fee 12.00
Payment Received(25.00)
INTEREST CHARGED 17.95
Closing Balance 1307.95

YorkshireBoy

jostenning wrote:

what should I ask them if I ring up?

Didn't I answer this question (before you even asked it!) 9 minutes after you first posted...nearly a week ago!...

YorkshireBoy wrote: »

You could try one last time with customer loyalty on 0800 783 1116, and see if they can reinstate the original 0% rate.

If you want further help with your statement and the interest calculation, then either post the full details, transactions, rates, dates (statement & payment due), etc (as shown on the statement) or ring MBNA for an explanation.

toby_puppy

I am on the online chat to them and this is what they said
I can confirm that as a result of your late fee, your promotional offer was removed. Interest was then charged daily on the standard rate of 18.9% p.a until we moved your balance onto the new promotional offer of 1.9% on 8 December 2010. Therefore you will only see the decrease of interest on your next statement.

toby_puppy

and they have kindly waived the late fee.
Heather: Yes as a courtesy I have refunded your late fee and this will be showing on your next statement.

I have now sent in a direct debit form for the minimum payment each month

YorkshireBoy

jostenning wrote: »

I am on the online chat to them and this is what they said
I can confirm that as a result of your late fee, your promotional offer was removed. Interest was then charged daily on the standard rate of 18.9% p.a until we moved your balance onto the new promotional offer of 1.9% on 8 December 2010. Therefore you will only see the decrease of interest on your next statement.

That explains it then.

Are you now going to ring customer loyalty, or just accept the £6 a month interest? [STRIKE]And have you set up the DD yet?[/STRIKE]

toby_puppy

direct debit has been set up

late fee of £12 refunded so now I'm only £17.95 out of pocket in interest due to my error. It should only be about £4 per month interest on future statements , which isn't as bad as £18

thanks for helping me

YorkshireBoy

When's your next statement date?

DDs take time to set up, so be sure to check your next statement closely. If it doesn't clearly say that the minimum payment will be collected by DD then you should pay by other means this time...a bit sooner than last time!