MBNA conditions seem a little strange

Ignatius_A

I just performed a balance transfer to a 0% deal (12 months) at MBNA.

One thing I was informed by the CSR AFTER doing this was that if I miss a single repayment (which I certainly wouldn't do intentionally) then the interest will revert to the standard level and will no longer be at the 0% deal

Is this normal practice, or a new ploy on behalf of the company to grab money back from people on 0% deals?

It certainly doesn't seem to align with the banking code on how to treat customers who are under financial strain.

Anyone else faced this?

nickmack

Ignatius_A wrote: »

Is this normal practice, or a new ploy on behalf of the company to grab money back from people on 0% deals?

Yes, fairly common in the industry.

If you do find yourself in this situation, you need to look at getting another 0% card quick.

Call up your current issuer and tell them as the rate has now reverted, their product is no longer value and you will transfer the balance away. They may put you back on the 0% deal.

Bloke_with_a_simple_life

Ignatius_A wrote: »

I just performed a balance transfer to a 0% deal (12 months) at MBNA.

One thing I was informed by the CSR AFTER doing this was that if I miss a single repayment (which I certainly wouldn't do intentionally) then the interest will revert to the standard level and will no longer be at the 0% deal

Is this normal practice, or a new ploy on behalf of the company to grab money back from people on 0% deals?

It certainly doesn't seem to align with the banking code on how to treat customers who are under financial strain.

Anyone else faced this?

Interesting view.

1. I would expect that their credit checks would ensure that people who were under financial strain would not be accepted for a credit card and hence not get the 0% rate in the first place?

2. Shouldn't there be a bit of personal responsiblity on the person taking out the credit card that they can afford to make the repayments? If not, should they take the card out?

3. Although I have not taken a card out in about 12 months, I did read the Ts & Cs and "health warnings" that did advise that if you don't keep up the minimum payments then you would lose any special rates. Therefore you are told BEFORE making the balance transfer (though maybe you didn't read them?)

4. Isn't it refreshing that someone in the call centre reminded you that if you don't keep up minimum payments, then you will lose the 0% rate. That sounds responsible and reassuring to me.

Maybe it is just me, but it sounds totally responsible on the lender's behalf - and provides us with the advice they need on whether or not to do a BT in the first place, and understand the consequences if we don't keep up the minimum payment.

In conclusion, the strange thing are not the Ts & Cs, but maybe that MBNA have been totally honest and upfront with you by spelling out the consequences? Is this honesty from a bank something you are unfamiliar with?

angstorey

Yes I have an MBNA card and accidently underpaid my monthly payment by £3. They put the interest rate up to 24% and cut my credit limit and charged me £12. I have managed to negotiate an new interest rate of 18% but am paying it of asap and not using them again

MABLE

It is all there in the terms and conditions. No excuse for late payments when you can easily set up a dd. I have an 0% deal for 12 months and the first payment taken was the bt fee and then subsequent payments for the rest of the period will be £5.00 per statement. So straight forward, so simple.

taxi73

A lot of cards point this out now including egg and barclays..so is common practice.