MBNA 0% on supermarket purchases scam

tannoy_2

I've been a customer of MBNA for 10 years, if not more.

I got a promo in the post saying that purchases made at petrol stations and supermarkets would be 0% until September. I double-checked this offer applied to me by logging on to their secure site and clicking on promotional offers. Here's the wording:

0.0% until 8 September 2011 on all new card purchases at petrol stations and supermarkets completed before 31 March 2011

I usually pay my full balance off, this being a reward-type card, but I've just bought a flat so I'm feeling the pinch a bit at the moment. To help ease the pain, I bought my groceries from supermarkets over the month. I deducted the supermarket transactions from the statement balance and paid the remainder.

I've just received my latest credit card bill and I've been charged £50 interest because I didn't pay the full amount. I phoned up customer services and they explained to me that the offer only stands if you don't use the card for any other type of transactions. No where did I see this written and it's certainly not in any small print beside the offer on MBNA's website.

I believe this offer is completely misleading.

Why doesn't the promotional material make it clear that you would have to go against your normal pattern of spending on your credit card and make purchases only in petrol stations and supermarkets? It seems bizarre that if I make a payment at any other place, the offer is withdrawn.

Am I just being thick or does anyone else think this is a dirty tactic?

WelshRarebit

There must be more to the T&Cs than what you posted? Do they have them on their website? If so post the link so we can take a look at them.

£50.00 interest sounds a bit steep for 1 month's worth of groceries if as you say you paid off everything else bar what you spent in supermarkets. Just how much did you spend on food shopping in one month??

chattychappy

No it's simple.

You have a normal rate for purchases. Exceptionally they are offering you 0% on petrol/supermarkets. You don't get any interest if you pay off your account each month.

So, if you don't pay off your balance in full you'll get charged interest. 0% on petrol/supermarket spend and standard interest on the rest.

tannoy_2

The promotional offer is on the website. You'll have to log in to see. There are three offers on the page, none of which have links to terms and conditions. I can't find anything any info on their brochure-ware website, nor via Google, although other credit cards come up if you look for "mbna 0% petrol stations supermarkets"

I spent around £2,400 in January statement, about £200 was on groceries. Therefore, I subtracted £200 from the £2,400 balance and paid MBNA the £2,200 difference.

tannoy_2

chattychappy wrote: »

No it's simple.

You have a normal rate for purchases. Exceptionally they are offering you 0% on petrol/supermarkets. You don't get any interest if you pay off your account each month.

So, if you don't pay off your balance in full you'll get charged interest. 0% on petrol/supermarket spend and standard interest on the rest.

Exactly, I thought it worked like this. I pay off my full balance, minus the petrol/supermarket spend. Thus, interest payment should be 0%.

dLockers

They probably calculate your spend at supermarkets, then divide your monthly payment to pay interest first??

chattychappy

tannoy wrote: »

Exactly, I thought it worked like this. I pay off my full balance, minus the petrol/supermarket spend.

So, you DIDN'T pay off the full balance

tannoy wrote: »

Thus, interest payment should be 0%.

No, because you pay interest on those non-supermarket/petrol purchases from the date you made them until the date payment reached MBNA.

You only get the non-promotional stuff interest free if you pay off your balance in full. Your mistake was assuming you didn't need to pay off your balance in full because part of the balance was at a promotional rate.

There wouldn't be separate T+Cs - because what they've done is apply the normal T+Cs.

ashleypride

chattychappy wrote: »

You only get the non-promotional stuff interest free if you pay off your balance in full. Your mistake was assuming you didn't need to pay off your balance in full because part of the balance was at a promotional rate.

That makes no sense to me.

If he spent £2,200 at say 18% APR and £200 at 0% APR. A payment of £2,200 would pay off the 18% APR in full, and leave the £200 at 0%.

If you need to pay off your balance in full, it means there is no promotional rate (assuming you purchase other stuff) at all and is a complete con.

EDIT: (I understand what you are saying but I would of also presumed it worked like the OP presumed)

chattychappy

ashleypride wrote: »

That makes no sense to me.

If he spent £2,200 at say 18% APR and £200 at 0% APR. A payment of £2,200 would pay off the 18% APR in full, and leave the £200 at 0%.

If you need to pay off your balance in full, it means there is no promotional rate (assuming you purchase other stuff) at all and is a complete con.

EDIT: (I understand what you are saying but I would of also presumed it worked like the OP presumed)

Yes, but the point is that not everyone pays off their balance in full. People who don't will benefit from this offer. If you do pay off in full each month, then you don't pay interest anyway. If you want to benefit from the offer (by taking extended credit on petrol/supermarket purchases) and don't want to pay interest on other stuff, then you have to put the other stuff onto another card.

I don't see this as a scam or a "complete con". The "up to 56 days interest free" is a concession if you pay off in full. Essentially it trumps the promotional offer. You can't cherry pick the best of both deals.

Kyresa

Has it changed from where the cheapest deals were paid off first yet?

Most likely, the 0% was paid off first, and the remainder that you had left was charged. The computer doesn't work it out that that money you left was from the supermarkets, it just sees a balance, as far as it's concerned, the supermarket spend was paid off from the money you paid in.

So the operator was right in that if you'd ONLY spent in a supermarket, then it would have been wholly 0%.

Anacrusis

I think they might have in the T+C that the supermarket money will be taken off first, so technically you'll have paid the 0% supermarket money, plus £2000 of the left over £2,200. Very annoying, but I think that might be how they do it.