MBNA credit card payment query

Curly_haired_lass

Hi

I hope someone can help me. I have received my latest MBNA Amazon credit card statement which advises I've been issued a £12 default notice and lost remaining 0% on the balance transfer (which I had until November). I have no idea why this has happened and have emailed MBNA on receipt of the statement. I've copied in my email and their reply and would hope someone can help me see if I've missing something as I cannot for the life of me work out how I've missed a payment.

Hope someone out there an shed some light on this for me, thanks in advance and apologies for length of message.

25/06/2011 from me

Please can you advise why you have added a late default sum to my June statement and also charged me interest. I have not missed any payments and list dates of recent payments: 3.2.11, 3.3.11, 31.3.11, 8.4.11, 18.5.11, 16.6.11. Please can you explain how I am at fault here as I have paid every month and am at a loss to see where I have missed a payment. If this is an error, please can you rectify it and remove the default and interest charged at your earliest opportunity, followed by you updating my credit file as this could have serious repercussions for me for future credit/borrowing. I would appreciate a swift response.Thank you.28/06/2011 from Customer Service

28.6.11 - MBNA reply - Thankyou for contacting us. I have reviewed your account. Having looked at the June statement I can see were the problem has arisen. The May statement advised a payment was due by 06/06/2011. I'm afraid this payment was not received by the due date. As a result of this late payment the promotional interest rate of 0% was removed and a Late Default Sum was applied to your account. As a courtesy I have been able to refund the charges. However the balance will remain on the standard interest rate of 18.9% pa up until the day it is cleared in full on time. Your 0% period was due to end in November 2011. If you would prefer we can re apply the fees and apply a new promotional interest rate of 9.9%pa. Please let us know which you would prefer and I can assure you we will take care of this for you right away. Do also bear in mind for future. If you provide us with your mobile telephone number you can keep up to date with your account using our mobile banking text service.

Payment dates and dates I made payments are:

Due 8.1.11 - paid 31.12.10
Due 5.2.11 - paid 3.2.11
Due 7.3.11 - paid 3.3.11
Due 7.4.11 - paid 31.3.11
Due 6.5.11 - paid 28.4.11
Due 6.6.11 - paid 18.5.11
And I've just made a payment on 16.6.11.

fozmcfc

Can't see how you missed it, does the June statement show show payment received "18th May or around then thank you" or similar?

Have you definately paid the minimum amount at least?

Curly_haired_lass

Hi

Thanks for replying. I've always paid minimum amount or more and have record of 18.5.11 payment on my statement dated 18.5.11 which said the due date was 6.6.11. I'm not sure if I'm missing something glaringly obvious here or if I've misunderstood payment dates. I just always pay when I get my wages which is every 4 weeks.

Thanks

fozmcfc

Well I can't see anything amiss from what you have posted.

Sometimes people pay twice in the same month, but for that to happen your statement would have to be issued on the 18th May or later.

Looks like your statement date is the 10th or thereabouts.

I would probably speak to them on the phone and ask them to look into it for you, tell them you have proof of payment shown on the 18th May, when payment was due on the 6th June and your June statement shows that payment.

Strangely some of your other payments have been very close to the mark, but going by your post, they have made a mistake.

bengal-stripe

Curly_haired_lass wrote: »

......have record of 18.5.11 payment on my statement dated 18.5.11 which said the due date was 6.6.11.

That's where the problem is. - You have paid too early.

Your payment was booked before the statement was compiled.
The statement dated 18/5 will list two payments: one dated 28/4 and one dated 18/5.

The payment on 18/5 presumably went by Faster Payment, so it arrived that same day.
Later that same day, your statement was compiled.

fozmcfc

bengal-stripe wrote: »

That's were the problem is. - You have paid too early
.
Your payment was booked before the statement was compiled.
The statement dated 18/5 will list two payments: one dated 28/4 and one dated 18/5.

That would make sense, but that seems to be a very short month, usually I would expect the statement to be about 25 - 28 days before payment is due, hence my assumption the payment was well in the statement date.

Curly_haired_lass

Thanks, so I have to pay again this month? I have created the problem by paying when I got paid instead of waiting for my statement to come in the post?

You're right, the May statement does list the payments made on 28.4.11 and the payment made on 18.5.11. So they won't take this as the June payment? I'm angry with myself now as this will be listed on my credit score. I'll ring them.

Thanks for your replies, they've given me clarity and are much appreciated.

fozmcfc

Well good luck, I can't believe the payment is required so soon after the statement, my Virgin (MBNA backed) statement is produced on the 10th and payment is due around the 4-6 of the next month.

chattychappy

Curly_haired_lass wrote: »

I just always pay when I get my wages which is every 4 weeks.

Not good enough! You must fit their timetable. Sequence is:

1) MBNA generate statement showing amount due and deadline.
2) You pay at least the amount due to reach them by the deadline.

ie the payment must hit during that time window.

The window can be quite short with MBNA - I think I get about 17 days. With Barclaycard it's almost a full month.

Plus the dates can move around a bit...

Does this explain what happened?

bengal-stripe

fozmcfc wrote: »

.....usually I would expect the statement to be about 25 - 28 days before payment is due,.....

Not with MBNA (anymore). Over the last few years, they have reduced the ‘interest-free period’ considerably.

My statements get compiled between the 16th and 18th of the month, payments are due between the 4th and 7th of the next month. (Five years ago, payment would have been due two days before the new statement.)

chattychappy

Curly_haired_lass wrote: »

Thanks, so I have to pay again this month?

Yep. It won't really be "again" from their point of view. But your minimum will be a bit less than it would've been because it is calculated by reference to the statement balance - which is lower because of the earlier payment.

Curly_haired_lass wrote: »

I have created the problem by paying when I got paid instead of waiting for my statement to come in the post?

Yes. I'm afraid you might have thought you were being "good" and prudent, but your personal arrangements don't enter into it. Don't want to sound harsh or patronising, but you must understand what you commit to and follow the rule. CCs aren't cuddly uncles that are there to help and and keen to be pleased.

Curly_haired_lass wrote: »

I'll ring them.

I think my starting point for the conversation would be to emphasise that it is obvious from your payment history that you are a reliable customer, ie not in financial distress. You feel that their reaction to a technical breach was disproportionate in the circumstances and that you will escalate the complaint if necessary. If they've tinkered with the statement/pay-by dates and this was a cause of your breach then I would argue that it is unfair for them to benefit as a result.

Whatever the outcome, I would keep copies of the relevant statements. Penalties are not meant to exceed the costs of the breach. There is an argument to say that these "gotcha" type arrangements are disguised penalties. Nobody's tried it yet AFAIK, but the world is moving and some day in the future things might change and we could have another PPI situation where people are entitled to reclaim. Don't want to get your hopes up though.

If they won't budge, you could try the FOS. MBNA might relent rather than have the hassle of a fight.