MBNA credit card causing a headache!

gavva1

I have an MBNA credit card, with a monthly direct debit from my current account with LloydsTSB. I cleared the full amount outstanding on the card, on the 20th June. (around £1200).

On the 5th July, a direct debit was taken for about £58.00, by MBNA, which put my current account overdrawn. This will result in about £50- odd of charges from Lloyds, as I only found out Sunday, & paid some money in to bring my current ac back into credit.

I spoke to MBNA on Sunday, where they said they would credit the money back Today ("I'll make a request to payments, who should get it Monday"). It hasn't. So my MBNA has a positive balance of £58.00, & I'm looking at a bunch of charges (Monthly fee, plus 5 daily fees) from Lloyds.

Can anybody let me know where I stand, I would've thought that over 2 weeks was long enough for MBNA to see that no dd payment should be taken? When I mentioned it, the CS rep said "the dd will just be taken anyway" - how slack!?! Do I have a case to tell MBNA that they should pick these charges up?

jonesMUFCforever

Neither LTSB or MBNA HAVE DONE ANYTHING WRONG!

You have though - sorry this is probably not what you want to hear.
As you have had a D/D for the minimum amount (presumably) then they will take that amount. Please read the back page of your credit card statement for a full explanation.

IMO you are in no position to ask MBNA for any redress.

What you should have done is pay off what you owed minus the minimum payment.

noh

MBNA will take the DD regardless of any other payments you make.
This is made clear on their website and on the statements they provide to you.
MBNA are not liable for your bank charges.

gavva1

I had a sneaky feeling this might've been my fault, but if you don't ask...! I just would've thought that as the cc account has had a zero balance for over 2 weeks, their system might've picked this up, & not taken a payment, as none was owed.

Ty muchly for the quick responses.

jonesMUFCforever

Thank you for accepting the replies even though it was not what you wanted to hear.

Other posters please note!

gavva1

Thanks for telling it how it is jonesMUFCforever, I knew if I ran this one past a consumer-centric forum like this one, & 2 separate posters say that's how it works, then I guess I have to take this one on the chin. Ouch (Trying to resist urges of "bet they're too busy working out their bonuses, or fidling the libor...

thenudeone

MBNA's statements are very clear on this one. The DD will always be taken regardless of any other payments.

They could probably have stopped the direct debit if you'd rang them in time and once they could see the balance was nil.

A hard lesson to learn, sorry.

chattychappy

You are not the first to fall into this trap. Others have made the mistake of paying off the balance, cancelling the DD and then getting failed DD charges from the CC. In one thread I remember, the bloke compounded the problem by not opening his CC statements (assuming the balance was clear) and ending up with late payment markers and mounting charges.

DDs are supposed to make life easy. From my point of view they just complicate it so I don't use them. But if you do, you really have to know how they work. Also note that different CCs have a different approach if you combine then with manual payments. So you have to check the policy for each card.

Gromitt

I have an AA card which is MBNA. Changed the DD account and as it was after the statement was printed, decided to both leave the minimum (£25) in the old account, plus the new account, plus make a debit card payment of the minimum amount, just in case.

Just checked and the website now says:

"Minimum payment: £0.00. Date due: No payment due"

I sent them a secure message. "No payment will be taken" was the reply.

I don't believe them as it says in the FAQ section "DD will always be taken regardless of any other payments made".

Lets see what happens.