Penalised for paying standing order too early!

evotennis

I have just been told that for the last 12 months I have been paying mbna too early in the month for my credit card. I do not recieve paper or online statements only an email once a month with balance and min amount due. I overpay monthy but on the 1st of each month not between 8-24th as they now tell me it needs to be. They have therefore been charging me late fees and apr for paying 7 days too early! I have complained to them and they have offered 6 months fees back but thats all they'll do. I'm worried about my credit score as well as the fact my money hasn't been paying the debt off! Any advice or experience of this before?

thenudeone

Credit card rules are very simple.

They produce a statement every month, on around the same date.

Sometime between the statement date and 21-25 days later, you must pay the minimum payment shown on the statement.

Both the minimum payment amount and the date it must be paid by are clearly shown on the statement (even if online) and on the status pages if you log in online.

This is all explained in the terms and conditions.

Why have you borrowed money without reading the terms and conditions that you signed?
And why have you repeatedly ignored the information shown regarding minimum payments?

You have been very fortunate in getting the fees back because you have been entirely at fault. Harsh but true.

Or a troll.

molerat

This a regular occurrence and a big problem when paying by SO, DD is a far more reliable method as it is up to them to collect it on time. Why do you not get proper statements either paper or on line ? Your e-mails must be in addition to a real statement and surely they state the due by date so any payments must be received between the e-mail and due dates. It will have affected your credit file as you will have many late markers. Get proper statements sorted and start reading them and your account T&C's NOW !!

pheonixrising21

I've had something similar with an MBNA card. I make manual payments (I refuse to pay by direct debit as they charge twice for a missed one - but thats a different story!). This month I paid too early. I paid on 2nd March, which apparently is the day they create my statement. Luckily I check my online statements and was able to see that my payment had not cancelled out my minimum payment for March. I am in the process of complaining, trying to get the payment made in March accepted as my minimum for the month, but they are not having it at the moment. However, they have moved my payment due date, so that the statement creation date is before the start of the month. therefore from now, I am free to make a payment anytime between 1st of the month and the due date.

I have told them that I will attempt to make a further payment this month "as a guesture of goodwill", but that I do consider the payment made already, and will take it to the FOS if they decide to charge a late fee should I not make the further payment. As soon as I tld them that, I got a call to say the whole thing has been escalated to management, so we shall see what happens.

molerat

That is kind of you, offering them a gesture of goodwill for you operating your account outside of the agreed t&c's. Am I thick, am I missing something, what is simpler than waiting for statement then making payment (in accordance with the t&c's I agreed to when I signed on the dotted line) ?

evotennis

Thank you for your reply. I understand the fault played by myself in this however I feel that mbna should have alerted me to the fact. I pay over the min amount every month and in there managers words 'they would have contacted me if I hadn't paid at all or if i'd not paid enough. I feel that although I must accept I should have asked for paper statements or applied for online statement that they have been a little sneaky with their information. The monthly email gives all the apparent info you need - balance and min amount due. Therefore as I pay 40% over the min amount I thought (my mistake I know) all was well and nothing to worry about. If like every other establishment I use online they sent an email saying my statement was available and 'click here' then I would have seen the obvious error after month 1.

balmk

As MBNA take the direct debit irrespectiveof any other payments made against the account, the most sensible option is to set up a minimum payment by direct debit (so you never miss one provided that you have sufficient cleared funds) and then make additional manual or standing order payments.

corbyboy

pheonixrising21 wrote: »

I've had something similar with an MBNA card. I make manual payments (I refuse to pay by direct debit as they charge twice for a missed one - but thats a different story!). This month I paid too early. I paid on 2nd March, which apparently is the day they create my statement. Luckily I check my online statements and was able to see that my payment had not cancelled out my minimum payment for March. I am in the process of complaining, trying to get the payment made in March accepted as my minimum for the month, but they are not having it at the moment. However, they have moved my payment due date, so that the statement creation date is before the start of the month. therefore from now, I am free to make a payment anytime between 1st of the month and the due date.

I have told them that I will attempt to make a further payment this month "as a guesture of goodwill", but that I do consider the payment made already, and will take it to the FOS if they decide to charge a late fee should I not make the further payment. As soon as I tld them that, I got a call to say the whole thing has been escalated to management, so we shall see what happens.

Why? You are at fault here. You payment is due at a point between two dates they give you and you paid too early. You might "consider the payment made already" but it isn't.

And why not use direct debit? If they took your payment twice a simple phone call to your bank would have the money back in your account right away. Would that be more hassle than the trouble you are going through now.

Judging by this forum, credit card companies must make a fortune from people who use standing orders.