Query regarding payments after balance transfer?

beambeam

I signed up for a balance transfer credit card via an advert on https://www.rangers.co.uk / MBNA that balance transfers were interest free for a year... I was in the market to consolidate a store card and credit card to give me some breathing room as finances were getting a bit tight!

I'd always understood that when you transferred balances like this, you had a period where no payments have to be made? Am I right?

On this belief when on the phone to the operator, where I was offered interest free for 13months on balance transfer, I was also told that I wouldn't have to make a payment on the balance until this period but advised that it is best to else I will suffer the interest when the time expires...

I told about the balance transfer fees, and accepted them and was told that I would not have to make any payments within the 13 month period though I was advised that it is best to do so to avoid interest when the time expires and so on - this suited me as I had only a few months to go before I was returning home for the summer (at uni) and would be grafting to make sure the card was paid off be the end of the summer (£1600).

Now, I am getting letters saying I am due minimum repayments, and when I call MBNA up and explain how I understood the situation and what I was told when I applied for the card, I am either laughed at or called a liar and I'm not happy about it.

Looking at the terms and conditions also, in the "interest free period" section it states that "there is no interest free period on balance transfer, credit card cheque and cash transactions".

I'm really confused by this, if that is the case, I would never have signed up for this card... can anyone help me or even point out if I have made a mistake at all along the line? I have only transferred balances onto the credit card when I opened it and I have never used it, in fact the card was destroyed as soon as it arrived.

Thanks in advance.

jamalfatty

All credit cards require some sort of payment each month while a balance is outstanding. Sure you were told no payments would be needed, or that no interest would need to be paid? Two very different things. And regardless of what they did (or didnt) say, if you'd read the T&C of the credit agreement you'd signed to say you had read and understood, you wouldnt have this problem.
You would have lost the 0% rate by now so I'd get the current minimum paid ASAP and then give them a call (0800 7831116) to see if they will reinstate it as it is the first ocurrence.

beambeam

Thanks for that and for the number too - I'll call and get that sorted out now.

beambeam

Called up and explained my misunderstanding, explained I can pay the arrears tomorrow and asked if it was possible to reinstate the interest free period which they were happy to do, thankfully.

Thanks for the advice again.

sicker

beambeam, most (nearly all) credit cards demand a certain percentage of your balance as a minimum payment, however many MBNA cards allow a minimum payment of just £5. Just be careful and read the terms and conditions.

John

jamalfatty

And perhaps think about consider setting up a DD for at least the minimum payment, you've got lucky here but they definitely wont reinstate the rate a second time.