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MBNA - Financial Ombudsman
andy86
Posts: 7 Forumite
in Credit cards
Hi,
I've had an MBNA card since January, my first statement came in February. Upon opening the account I used a couple of money transfers but have not since used it for anything else.
Upon receiving my first statement paid the minimum amount a couple of days after, which happened to be February 18th. I set regular standing orders to pay by the same amount on the 18th every month thereafter. I don't use the card for any purchases and I have a 0% interest rate until December 2014 so I knew that my minimum payment would reduce each month thereafter so my standing order would cover it.
However in May I received notice of my account being in arrears. I checked my account and I had a £12 late payment fee for each month April and May. I also had interest charged in both of these months. This meant that my minimum payment had gone through the roof, but luckily I've barely managed to cover it to stop further charges coming through.
Upon investigating why these charges occurred it turns out that my statement in March came on the 19th, one day later than my payment on the 18th. Even though my statement in February came on the 16th. I understand why this happened as February has less days.
Upon contacting MBNA they explained that I had made my March payment one day too early and it was not their banking error so they would sustain the charges. I feel it is only fair since I had every intention of paying on time and above the minimum payment and I feel that it is also unreasonable.
I have complained to the Financial Ombudsman, and am awaiting a final response in writing from MBNA. One of my concerns is that the Ombudsman must have misheard or misunderstood me on the phone and got my surname spelling completely wrong and this would probably be passed on in the Ombudsman's letter to MBNA. However they do have the account number so I'm hoping MBNA are intelligent enough to put 2 and 2 together.
Do you think I have a fair case?
Could MBNA play on the misspelling of my name and say in their defence they have no record of such a person?
I've had an MBNA card since January, my first statement came in February. Upon opening the account I used a couple of money transfers but have not since used it for anything else.
Upon receiving my first statement paid the minimum amount a couple of days after, which happened to be February 18th. I set regular standing orders to pay by the same amount on the 18th every month thereafter. I don't use the card for any purchases and I have a 0% interest rate until December 2014 so I knew that my minimum payment would reduce each month thereafter so my standing order would cover it.
However in May I received notice of my account being in arrears. I checked my account and I had a £12 late payment fee for each month April and May. I also had interest charged in both of these months. This meant that my minimum payment had gone through the roof, but luckily I've barely managed to cover it to stop further charges coming through.
Upon investigating why these charges occurred it turns out that my statement in March came on the 19th, one day later than my payment on the 18th. Even though my statement in February came on the 16th. I understand why this happened as February has less days.
Upon contacting MBNA they explained that I had made my March payment one day too early and it was not their banking error so they would sustain the charges. I feel it is only fair since I had every intention of paying on time and above the minimum payment and I feel that it is also unreasonable.
I have complained to the Financial Ombudsman, and am awaiting a final response in writing from MBNA. One of my concerns is that the Ombudsman must have misheard or misunderstood me on the phone and got my surname spelling completely wrong and this would probably be passed on in the Ombudsman's letter to MBNA. However they do have the account number so I'm hoping MBNA are intelligent enough to put 2 and 2 together.
Do you think I have a fair case?
Could MBNA play on the misspelling of my name and say in their defence they have no record of such a person?
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Comments
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Based on condition 3.4 I'd say not...Do you think I have a fair case?
...because they told you beforehand what would happen.If we do not receive the minimum payment when due...your promotional rate will be withdrawn from the start of the statement period in which this happens
Additionally, condition 15.4 places a duty on you to check your statement each month...
...and you didn't do that (for several months, and only then when prompted by MBNA).You are responsible for ensuring that you access and check your statement each month.
I wish you good luck, but due to the delay involved you may have an uphill battle (some people have reported getting a deal reinstated if they act quickly, ie as soon as they see the issue on their statement).
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Do you think I have a fair case?
Given that credit cards very rarely have the same due date each month. Setting up a standing order is a hiding to nothing.
Was another post about exactly the same issue not long ago.
Sadly I do not see the FCA backing your case.
Reason being YOU choose the payment method and the date, based on one month.
If you looked at ALL the due dates over 12 months, you will see that it would be very hard to pick one date of each month that would fit.
DD all the way for a min payment and then the rest by whatever means you prefer.Never ASSUME anything its makes a>>> A55 of U & ME <<<0 -
Why, oh why, oh why? Direct Debit for the minimum payment is the way to go. Doesn't help the OP but perhaps someone else may read this before they make the same mistake.I set regular standing orders to pay by the same amount on the 18th every month thereafter.
Edit: what dalesrider said.Are you for real? - Glass Half Empty??
:coffee:0 -
the thing is, I don't like using DD. reason being, I'm basically signing a piece of paper allowing them to take money from my account. and if they make a mistake doing that, I don't get to charge them fees and hundreds of £s in interest.
I believe the law takes into account reasonable intention. The fact that I have demonstrated intention of making my payments and have not been grossly negligent. although they do have their rules and I admit I understand how the charges have occurred I can guarantee I will not let it happen again (and I still wont use DD), I still think they are being unreasonable in their decision not to refund the charges.0 -
the thing is, I don't like using DD. reason being, I'm basically signing a piece of paper allowing them to take money from my account. and if they make a mistake doing that, I don't get to charge them fees and hundreds of £s in interest.
I believe the law takes into account reasonable intention. The fact that I have demonstrated intention of making my payments and have not been grossly negligent. although they do have their rules and I admit I understand how the charges have occurred I can guarantee I will not let it happen again (and I still wont use DD), I still think they are being unreasonable in their decision not to refund the charges.
You can set direct debit up for minimum payment which would have avoided all this. The main point though is that if you'd checked this for one month and got things resolved then you might be ok, leaving it for several months just shows a lack of attention and responsibility and you haven't got a case.0 -
You can set direct debit up for minimum payment which would have avoided all this. The main point though is that if you'd checked this for one month and got things resolved then you might be ok, leaving it for several months just shows a lack of attention and responsibility and you haven't got a case.
OK I disagree, maybe I'll get a refund maybe I wont. But I'll put together the best argument I can.0 -
op none starter, and complaining to the fos will get you even less from mbnaDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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The FOS won't back you, as it's obvious that you are the one at fault. A court wouldn't back you unless you proved the contract was unfair. It isn't.OK I disagree, maybe I'll get a refund maybe I wont. But I'll put together the best argument I can.
A conciliatory approach by you to MBNA may lead to a goodwill gesture. That's your best bet.0 -
Oh yes you do! You charge them the fees and interest you've incurred as a result of their actions...and the Payment Services Regulations will back you up all the way. Plus, probably a bit extra for the 'distress and inconvenience' incurred (see the FOS website).the thing is, I don't like using DD. reason being, I'm basically signing a piece of paper allowing them to take money from my account. and if they make a mistake doing that, I don't get to charge them fees and hundreds of £s in interest.
Plus they tell you beforehand (3-4 weeks beforehand!) what they're going to take and when. But you'd have to read the statements to see that...and so far it appears that's not been a priority for you.
For reference, I've been using DD for over 30 years and NEVER had a problem. It's a very useful insurance policy against what you've now suffered.0
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