0% to 19% interest Sting from MBNA

sophieliz

Have learnt a very expensive and painful lesson today. I took up an offer on a 0% interest balance transfer on my play.com card (mbna visa) last November. Setting up my Standing Order I missed the first payment and took the £12 late fee. I left my account to snooze (thinking in was on 0% interest until Nov of this year), and I didn't check my online statements. HUGE mistake! I discovered today that because I missed my first payment in Dec 11 it allowed MBNA the right to change my interest rate from 0% to nearly 19%. This has cost me nearly £1000 over 6 months. Normally I am really good at managing my finances but this time I took my eye off the ball and have been really stung! PLEASE check your statement every month - it's really sad that we have to spend so much time double checking everything but it can be expensive if you don't!

redpete

I think there are 4 issues to highlight from this:

1. Make sure that you understand the terms of any offer you sign up to, if you had then you would have known that missing a payment would end the 0% period straight away.

2. When setting up automatic payments make sure that the bank and CC company are both able to process the first payment by the required date. (Safer would be to make a manual first payment and only rely on DD or SO when the statement telss you it will be processed.)

3. Be careful with SOs for monthly payments - if it goes wrong it is (usually) your responsibility - e.g. what if the payment date varies month to month and you have set the SO for a fixed date. If you set up a DD it is the responsibility of the CC company & bank to make sure it works - as long as you have funds in the account.

4. Check statements even if you don't expect anything interesting to be shown.

blitzboy

"it's really sad that we have to spend so much time double checking everything but it can be expensive if you don't!"

It only takes 2 minutes a month to check the statement. If you dont bother to do that for 6 months then you deserve all you get.

Its made very clear in most (if not all) terms and conditions that if you miss a payment then you will loose promotional deals. If you had contacted them and explained the error in missing the first payment at the time they probably would have re-instated your 0% deal and refunded you the fee, as has happened to many people on here from what i've read.

YorkshireBoy

redpete wrote: »

I think there are 4 issues to highlight from this:

I'd add a 5th...

5. Never, ever, opt for paperless billing. Much more likely you'll read something if it's in your hand!

chattychappy

Sorry to hear of this expensive lesson.

Personally I like paperless billing. MBNA send a text when the statement is ready and I can check it online. Paper bills would always take a while to reach me - leaving very little time to pay.

ANYWAY, late as it is, it might be worth phoning MBNA to see if they will do a deal. Certainly there have been reports here from people who messed up and got the offer re-instated, or at least some kind of compromise. You could back this up with a letter arguing that whilst you admit you missed a payment, their reaction was disproportionate(**).

(** there is an argument that this kind of "gotcha" situation is a disguised form of penalty, and penalties shouldn't exceed the cost of the breach to the party concerned. If unsuccessful, I would still keep a copy of your letter - you never know there might be a challenge further down the line. Don't get your hopes up though!)

exel1966

sophieliz wrote: »

Have learnt a very expensive and painful lesson today. I took up an offer on a 0% interest balance transfer on my play.com card (mbna visa) last November. Setting up my Standing Order I missed the first payment and took the £12 late fee. I left my account to snooze (thinking in was on 0% interest until Nov of this year), and I didn't check my online statements. HUGE mistake! I discovered today that because I missed my first payment in Dec 11 it allowed MBNA the right to change my interest rate from 0% to nearly 19%. This has cost me nearly £1000 over 6 months. Normally I am really good at managing my finances but this time I took my eye off the ball and have been really stung! PLEASE check your statement every month - it's really sad that we have to spend so much time double checking everything but it can be expensive if you don't!

You've been waiting for this T so here it is;

There's a huge difference between taking your eye off the ball and not checking statements for 6 months, the latter being extremely lazy financial (mis)management. Most people do spend 60 seconds checking their statements each month and because they do they don't have to 'double-check' them nor spend 'so much time' doing it.
Harsh lesson learnt especially when you've 'stung' yourself wouldn't you say?

As for setting up a standing order, why not set up a Direct Debit and put the onus on them to collect your payment....cue chattychappy

prowla

blitzboy wrote: »

"it's really sad that we have to spend so much time double checking everything but it can be expensive if you don't!"

It only takes 2 minutes a month to check the statement. If you dont bother to do that for 6 months then you deserve all you get.

Its made very clear in most (if not all) terms and conditions that if you miss a payment then you will loose promotional deals. If you had contacted them and explained the error in missing the first payment at the time they probably would have re-instated your 0% deal and refunded you the fee, as has happened to many people on here from what i've read.

Seems to me like the OP was just sharing their experience as a warning, not asking for judgemental comments back.

chattychappy

exel1966 wrote: »

As for setting up a standing order, why not set up a Direct Debit and put the onus on them to collect your payment....cue chattychappy

Ah well now I can't resist!!!

We have seen a number of threads where people have lost the promo deal precisely because they set up a DD and the first payment wasn't taken. On posting here, they will be told how it takes time to set up a DD and unless their statement says the DD will be taken then they were in error for assuming it would be. All very well - but not what people expect. Then of course we have the issue of people remembering to have the money available when the DD is taken. If they can remember that, then probably they can remember to make a manual payment. Either way a failure means charges and a lost deal on the CC. But a failed DD is double trouble because it can mean charges and even a marker from the current account as well.

More importantly.. DDs are for sissies! :D:D

prowla wrote: »

Seems to me like the OP was just sharing their experience as a warning, not asking for judgemental comments back.

Yep! Brave lady... I do hope she can get some kind of compromise off MBNA, even though it is rather late. Else a BT of the outstanding balance to a new card (if she can get one) might be the best bet.

Eonel

Have you spoken to customer services and appealed to their better nature?

It is quite possible to get a 0% deal restated after making a mistake like this. I had a deal restated, although not with a significant passage of time like in your case.

blitzboy

prowla wrote: »

Seems to me like the OP was just sharing their experience as a warning, not asking for judgemental comments back.

Seems to me like I was simply stating that if people dont check their statements then they are asking for trouble. I dont see how this is being particularly judgemental.