MBNA Credit Card - Paid my first payment too early

amarsha4

Hi all!

I applied for an MBNA credit card in February and was successful. I performed a money transfer, transferring my overdraft to the card.

I wanted to pay more than the minimum amount each month but didn't want to pay the full balance, so I set up a standing order with my bank to pay £100 on the first day of each month, like all my other bills.

I had a little trouble logging into my account online, as I have another MBNA card (Virgin), but I finally managed this after reading in the most recent MSE email that it's very rare for CC companies to offer interest-free money transfers.

When I logged in I realised I'd received a late payment charge on 22/03/2013 and 22/04/2013, and had been charged interest!

I spoke to someone from MBNA on the phone and they confirmed what I suspected had happened, the payment on the 1st of each month was being taken as a late payment from the previous month.

The guy I spoke to says I must've made my first payment before I actually received my bill and that the reason I'd been charged interest was because I'd made late payments, so lost out on the interest-free offer. He was very helpful and put me back on "interest-free mode" and refunded one of the late fees.

The problem is, I'm still £35+ out of pocket for what, I think, was not my fault.

This is where I hope someone can help me. I'm sure when I first set up my account, I actually managed to log in online, and the date of my 'next payment' was listed as 22/03/2013 immediately, which is why I paid on the 1st.

Has anyone very recently opened a new account with MBNA? Could you confirm whether this payment date is listed straight away?

Hope someone can help!

Thanks,

Andy

chanz4

If you paid early whos fault is it then?

redpete

amarsha4 wrote: »

The problem is, I'm still £35+ out of pocket for what, I think, was not my fault.

Apart from it being you who set the payment date and didn't understand how CC statement / payment dates work.

This is where I hope someone can help me. I'm sure when I first set up my account, I actually managed to log in online, and the date of my 'next payment' was listed as 22/03/2013 immediately, which is why I paid on the 1st.

Probably irrelevant, thbecause you paid before the statement date and then after the payment date you missed out; I would count yourself lucky that you got back on the 0% offer.

This is one reason I like DD payments for the minimum amount - it's the lender's responsibility to take the money on the correct date. (Although you do need to make sure that the first DD is set up in time to make the first date.)

geekonthepc

Sadly this is one you're not likely to win with the credit card company. I think it's always best to set up a DD directly with the company (set it up from their site, not a standing order from your bank) - that way you can't go wrong. Even if you just set it to pay the minimum payment, you can make any further payments from a card at your discretion. That way, you can't be faulted for a late payment.

Rule no. 1 with 0% offers on CCs: NEVER pay the statement late
Rule no. 2 with 0% offers on CCs: NEVER pay before the statement has arrived (never pay early!)

As someone already posted, count yourself lucky that you didn't lose your 0% offer, most CC companies wouldn't be so kind.

dalesrider

I think you need to back track a bit.

What date did you open the account?
What date was the 1st statement created? Check what it says on the printed one.
What date did it say payment had to be made by.
What date was your 1st payment?

Well how did you get a late payment charge on 2 months?
Taking it you made payments on:
01/03 & 01/04
How would you receive 2 late payments, as one should have been in time.
Or did you start payments on:
01/04.

[Deleted User]

I've recently opened an MBNA card and I can say for certain that it doesn't display a first payment date immediately. I've had my card open for about three weeks now and it still says 'no payment due' when I check in online.

amarsha4

Thanks for the replies, everyone! I guess I'll chalk this one up to experience should I ever need to get another credit card!

StuC75

Simple when the first payment had been made before the statement was prepared, and the second payment made after the due date showing for that statement, e.g.

1st April -£100 paid
5th April - Statement Prepared, includes the £100 payment, but the next payment is due by the 26th April say (theres always a 'buffer' / trap before the next statement date.

1st May - Further £100 paid.
6th May - Statement prepared, includes the £100 paid but that is flagged as a late payment. Interest charged & deal removed..

I know it get stick elsewhere on here, but I always have the DD in place for minimum payment - whilst happy with a balance transfer.. then make additional payments as&when needed to bring the balance down..

dalesrider wrote: »

I think you need to back track a bit.

What date did you open the account?
What date was the 1st statement created? Check what it says on the printed one.
What date did it say payment had to be made by.
What date was your 1st payment?

Well how did you get a late payment charge on 2 months?
Taking it you made payments on:
01/03 & 01/04
How would you receive 2 late payments, as one should have been in time.
Or did you start payments on:
01/04.

chattychappy

DDs are all very well. But if you don't understand the fundamental rule about the window during which payments must be made, you could well end up with a DD failing for lack of funds and/or other knock on effects.

Standing Orders are great - but you must choose your dates carefully so that the payment arrives during the window. Statement dates/due-by dates can move around a bit.

OP: I think you did very well getting the deal re-instated. Plenty of stories on here of refusals and/or deals being re-instated on inferior terms.