Balance transfer cancelled due to late payment

Cambs160849

Does anyone have any experience about a balance transfer being cancelled due to a late first payment? Is there any recourse?
I paid £500 to transfer a large balance to M**A for 0% for 12 months but due to an oversight was two days late making the first payment. Now I find that they are charging me the full 25%.
Seems grossly unfair.:(

jonesMUFCforever

Why is it unfair - it seems reasonable to me.
You broke the rules - you pay the price.

Perhaps a nice telephone call crawling to them saying you are sorry to have been late with payment and would they please consider reinstating the promotional rate - and at the same time set up a direct debit for the minimum payment.

Cambs160849

Seems very unreasonable to me. What I am looking for is anyone who can show me that M**A will change their mind after an appeal. I can then use that to make my case.

Dr_Cuckoo3

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=5536

Cambs160849

Thanks for the clarification

Chrisandsarahs

I think that they are within their rights to do this. But I do think a phone call may sort it all out if you're lucky.
Why didn't you set up a direct debit?
Also, did,you read the T&C's? They all say that any late payments will cancel the special rate.
I did the same thing a few years ago. I was a week late with a payment because I was on holiday. I always set up DD's now.

chattychappy

Usually in these cases people phone up and complain and a deal is done. This also happened in the FOS case.

Normally a penalty for a breach of contract is limited to the cost to the injured party. There was a time when CCs routinely charged £25 for a missed payment. People complaining were told that because it was in the T+Cs there was nothing they could do. In the end it was held to be illegal and £12 has become a defacto standard. Remember, just because something is in the T+Cs doesn't mean it's legally binding.

There is an argument that removing a BT deal is a disguised penalty disproportionate to the breach (and therefore illegal). As far as I know, this has never been tried in court (and it's unlikely the FOS would be brave enough to make such a ruling). But this is the argument I would try with the CC.

I would also keep all the details of what happens. If some kind of precedent is set during the next 6 years then there would be the possibility of a reclaim. But don't hold your breath...

It is part of the business model of BTs that a proportion of people "mess up" and lose the deal and cardholders pay standard interest. Whether or not a court intervenes, I can imagine that when the FCA takes over from the OFT in regulating CCs, this kind of approach will be banned.

opinions4u

Phone up, grovel nicely (you broke the T&Cs, not them) and take it from there.

CRISPIANNE3

Cambs160849 wrote: »

Does anyone have any experience about a balance transfer being cancelled due to a late first payment? Is there any recourse?
I paid £500 to transfer a large balance to M**A for 0% for 12 months but due to an oversight was two days late making the first payment. Now I find that they are charging me the full 25%.
Seems grossly unfair.:(

These things happen but do set up a direct debit for future payments.
I have dd set up for all my accounts but normally make the payments manually and if made in sufficient time stops the dd for that month.

As other contributors have said ring them and just be nice.

planteria

jonesMUFCforever wrote: »

Why is it unfair - it seems reasonable to me.
You broke the rules - you pay the price.

Perhaps a nice telephone call crawling to them saying you are sorry to have been late with payment and would they please consider reinstating the promotional rate - and at the same time set up a direct debit for the minimum payment.

yes, get on to them to see what you can persuade them to do. using DDs to make monthly payments is key to my stoozing. if you hadn't already, i would make the payment before calling them, too.

CRISPIANNE3

planteria wrote: »

yes, get on to them to see what you can persuade them to do. using DDs to make monthly payments is key to my stoozing. if you hadn't already, i would make the payment before calling them, too.

The OP has already said he has made the payment. The problem being it was late.