MBNA (AA) credit card sleight of hand

Millie_Millsters

chattychappy wrote: »

They are credited to the account immediately and interest will stop running in respect of them from the day they are received..

Yes, I know

chattychappy wrote: »

The OP's issue is nothing to do with payments not being credited to the account. It is a matter of failing to pay amounts according to what has been agreed.

I know this too :T but I was replying to a specific point that the OP made

prowla

chattychappy wrote: »

They are credited to the account immediately and interest will stop running in respect of them from the day they are received.

The OP's issue is nothing to do with payments not being credited to the account. It is a matter of failing to pay amounts according to what has been agreed.

Actually it is about a hidden gotcha in the agreement that does not appear to be stated in the T&Cs.

The T&Cs I quoted earlier state:

• "You must pay at least the minimum payment each month and this must reach your account by the payment due date.",
• "We will choose your payment due date and show it on your statement. At any time you can also repay all or part of your outstanding balance."

What was agreed was that I would make payments by the payment due date. But actually you can only make a payment between certain dates of the month (eg. between the 9th and 26th) as opposed to any time that month up to the due date (ie. between 1st and 26th). The published T&Cs do not state that. The accepted definition of a "month" is that it starts on the 1st and consists of approx 30 days (as defined by the 30 days hath ... rhyme), but the CC company silently interpret the term "month" differently.

My point is that I made a payment on the 8th of August last year and it did not qualify as a payment due by the 27th (if I'd paid it on the 9th it would have). I also made a payment on 6th December but it did not count as payment due by 26th (if I'd paid it on the 7th it would have). And I did one of 4th January that did not count as being received by 25th (if I'd paid it on the 7th it would have).

Therefore the sleight of hand that I refer to is that the T&Cs say that you have to pay at least the minimum amount each month by the due date each month, but they do not say that there is window of only about 19 days of the month that count. The T&Cs do not say that.

My mistake was in interpreting "each month" as meaning any day of that month (up to the due date).

(NB. The above were not overdue payments on the previous month, not subject to arrears, etc.)

thegoodman

I think mbna cards with their 0% offers are much better then some other cards. I have saved a lot over many years mainly when intrest rate were high. Good customer service. What more can you ask for since it's free credit

prowla

Millie_Millsters wrote: »

Yes, I know



I know this too :T but I was replying to a specific point that the OP made

I understood that.

prowla

thegoodman wrote: »

I think mbna cards with their 0% offers are much better then some other cards. I have saved a lot over many years mainly when intrest rate were high. Good customer service. What more can you ask for since it's free credit

I would ask for clear and precise T&Cs.

thegoodman

prowla wrote: »

I understood that.

Do you have any other cards?
How do you manage them?
Do you have a loan or mortgage?

prowla

thegoodman wrote: »

Do you have any other cards?
How do you manage them?
Do you have a loan or mortgage?

Yes - I've already said that I pay my other cards in full each month, on or the last working day before the due date.

As I said, I didn't pay proper attention to this one, and I got caught out.

How's it going with understanding what 30 days interest-free credit means?:)

MonkeyMad

prowla wrote: »

What was agreed was that I would make payments by the payment due date. But actually you can only make a payment between certain dates of the month (eg. between the 9th and 26th) as opposed to any time that month up to the due date (ie. between 1st and 26th). The published T&Cs do not state that.


Therefore the sleight of hand that I refer to is that the T&Cs say that you have to pay at least the minimum amount each month by the due date each month, but they do not say that there is window of only about 19 days of the month that count. The T&Cs do not say that.

Nice and simply, so you may be able to understand.

What was agreed was you that must pay a minimum amount notified to you by your statement by the due date - it is a bill. You are free to reduce your balance at any time in order to reduce the amount you owe when the statement and bill is generated. What you seem to not want to understand is that you can't pay the minimum amount until you are told what it is, so how can you pay it 'early'??!

You are expected to pay the minimum amount regardless of payments made between statements. Payments made early cannot count towards the minimum since the minimum amount is calculated after they are applied - even my 10 year old managed to work that out. The terms are clear in that they tell you the minimum you have to pay when you get your bill. They are also clear in that you may reduce your outstanding balance at any time. They are also clear in telling you when you have to pay it by. What more do you want? The only time an early payment will count against the minimum is if you clear the balance entirely. I don't see why the whole world get this but you don't.

Let's get this up to 100 posts

prowla

On a plus note, I've just won the Euromillions.
Sadly it was only £6.20...

thegoodman

prowla wrote: »

Yes - I've already said that I pay my other cards in full each month, on or the last working day before the due date.

As I said, I didn't pay proper attention to this one, and I got caught out.

How's it going with understanding what 30 days interest-free credit means?:)

All credit products work the same.
If you have a mortagage and say your monthly payment is £1000 a month due by 1st of the month. You made the payment of £1000 on the 2nd and another payment on 10th of the month of £1000. The 2nd payment will count to reduce the balance not towards your next month payment.

You will still need to make the payment of £1000 following month.

Since you have not pay proper attention I am sure your credit file is also maked to say that to warn other credit companies. Others may also reduce the limit as well