MBNA (AA) credit card sleight of hand

prowla

Cell wrote: »

Going back to the very first post, and despite the many replies, this is the core issue.

I think that the problem is the use of the term 'month'. You've interpreted that to be a calendar month, while in credit card terms it actually means the time between one statement and another (which can actually be slightly more, or less, than a calendar month on occasions.

Technically, semantically, I can therefore see your point, but on a day to day basis I reckon most people intrinsically realise how the word 'month' is intended to be interpreted.

I prefer the use of the word 'cycle', but was never ever in doubt from day one what was meant, and have thus never made a mistake of that type.

An analogy for your original post is trying to pay for your shopping when you enter the supermarket without knowing the prices. You haven't received your bill, and as such can't know what, precisely, to pay off until you've been to the checkout (the statement).

I agree that the term "cycle" is less ambiguous.

Your analogy is not quite right; the bill does not have to be settled in full which means that the actual total is not required, and thus it is entirely and deterministically possible to pay an amount that will certainly exceed the minimum payment, because the formula for that amount is clearly stated in the agreement.

Cell

Yes, it was an imperfect analogy, I accept, but the nearest I could come up with at short notice.

I see where you're coming from, but in practice this doesn't seem to cause any problems to most people.

Anyone with a DD will not have to worry, for a start.

I try and pay my bill on the first day after a statement (I carry a balance, so it reduces interest ever so slightly). Most are on line, but one card is postal statement only, so although I'm pretty sure that I can pay on 25th of the month (one day after the usual statement date) I do not do so until it's physically in my hand, just in case for some anomalous reason the statement date is delayed and I end up paying twice in one statement period instead of them being allocated to two payment cycles.

YorkshireBoy

prowla wrote: »

Actually, that is...the first useful thing that any of the responders have said on this thread...

I'm not sure how the others who have tried to help you will take that, but I'm personally insulted by that statement.

I've given valuable time over 2 days to try and explain it to you. I've taken the trouble to visit the MBNA website (and show you where the T&Cs are so you can see for yourself) and quote the relevant sections to you.

You're very ungrateful! Indeed, if you weren't a long standing MSE member with over 2,700 posts to your name I'd go as far as to suggest you were trolling.

I won't be responding further to this thread.

chattychappy

prowla wrote: »

Items that aren't stated in the contract and/or are assumed to be the case are not part of the contract.

No, as a matter of law that is wrong.

thegoodman

I think OP is lossing it or passing the time. I dont even know why others spend their time writing on this post, I know I have answered as well.
Its not helping anyone.

prowla

YorkshireBoy wrote: »

I'm not sure how the others who have tried to help you will take that, but I'm personally insulted by that statement.

I've given valuable time over 2 days to try and explain it to you. I've taken the trouble to visit the MBNA website (and show you where the T&Cs are so you can see for yourself) and quote the relevant sections to you.

You're very ungrateful! Indeed, if you weren't a long standing MSE member with over 2,700 posts to your name I'd go as far as to suggest you were trolling.

I won't be responding further to this thread.

I apologise for that - you are right and you did show me the link to the T&Cs, thank you.

The other posts felt like you were talking at me, and insisting that items in the T&Cs stated things that they do not.

prowla

chattychappy wrote: »

No, as a matter of law that is wrong.

A contract cannot rely on unspecified conditions that one party holds in reserve and does not disclose.

Items that are not clear and unambiguous are subject to interpretation, and if that can be demonstrated then they cannot be enforced.

The use of common words, like "month" cannot logically be secretly re-defined to mean something else (eg. 2 weeks) to suit a given party, and then insisted upon as part of a contract.

prowla

Cell wrote: »

Yes, it was an imperfect analogy, I accept, but the nearest I could come up with at short notice.

I see where you're coming from, but in practice this doesn't seem to cause any problems to most people.

Anyone with a DD will not have to worry, for a start.

I try and pay my bill on the first day after a statement (I carry a balance, so it reduces interest ever so slightly). Most are on line, but one card is postal statement only, so although I'm pretty sure that I can pay on 25th of the month (one day after the usual statement date) I do not do so until it's physically in my hand, just in case for some anomalous reason the statement date is delayed and I end up paying twice in one statement period instead of them being allocated to two payment cycles.

Why do you pay the first day after the statement, as opposed to the first day before the due by date? What is the advantage of paying then?

(Apart from this one, obviously!) I pay my bills online and schedule them to arrive the day before their due date; that means that my money stays in my account the longest.

Cell

As I said, I carry a balance, so if I pay the minimum early (actually I pay more) that's just a little less interest to pay. Saves me about £5 a month on my outstanding balances. Not a lot, but psychologically beneficial.

I have come to hate debt, and every penny I can spare, whilst allowing me a reasonable standard of living, goes towards reducing it.

prowla

Cell wrote: »

As I said, I carry a balance, so if I pay the minimum early (actually I pay more) that's just a little less interest to pay. Saves me about £5 a month on my outstanding balances. Not a lot, but psychologically beneficial.

I have come to hate debt, and every penny I can spare, whilst allowing me a reasonable standard of living, goes towards reducing it.

Ah - OK, I see.