MBNA have ruined my credit rating as a result of their own errors.

Flying_Demon

Hi,

I am trying to find out if anyone else has experienced a similar problem with MBNA?

I have a premium MBNA Credit Card with a zero balance, it's managed on-line. In early May I received a letter stating a balance on my account was overdue. I contacted MBNA and was told the balance was due to the cards annual £140 fee and that interest and penalties had been added. I complained that I had not been made aware the card fee had been charged to the account until the letter received in early May (if it had been a purchase on the card I could reasonably have been expected to know an amount was due but do not keep track of when MBNA decide to charge the annual fee). I paid the £140 annual fee immediately by debit card and MBNA agreed to credit the penalties and interest charges. I was advised by MBNA that as my account is "paperless" I would have received a statement e-mail on 12th March requesting settlement of the original balance. I checked my e-mail and confirmed to MBNA that no such e-mail had been received.

I now find that MBNA have reported a late payment to Credit Reference Agencies for April. I had a completely blemish free Credit Report up until this, with no missed payments. I complained to MBNA Customer Service Team who refused to make arrangements to correct the entry on the basis I had not been sent a statement by e-mail. This has now been escalated to MBNA's "Customer Advocate Team" who are requesting up to 56 days to investigate the matter. I have sent an e-mail to CEO to no avail and also provided a e-mail evidence from my e-mail Service Provider who searched their incoming e-mail logs and confirmed no e-mail was received from MBNA on the 12th March as they state.

In the meantime my credit rating is compromised and as I am contemplating a major purchase involving finance I am having to hold off until this matter is resolved. Has anyone been in a similar situation?

thebritishbloke

This is why everybody should have a direct debit set up on their credit cards for at least the minimum payment. Regardless of whether you log in every month that you know you've used the card. It's a fallback just in case.

Nothing you'll be able to do about it I'm afraid. You did make a late payment, so legally they can't remove the mark as they have to report truthfully. It's your responsibility to login to your online account and check your statement each month, regardless of whether you've used the card recently or not.

Take it as a lesson learned, and always have a direct debit set up.

Flying_Demon

Thanks for your reply, but surely if MBNA have not provided a statement e-mail they are at fault? I have independent evidence to support this.

GingerBob_3

Yet another example of a possible minor indiscretion - maybe not even a true one - having a potentially devastating effect. This board is full of such examples. Basically, a fair system would be for the creditors to be forced to remove anything that's in dispute from the CRA databases, until such time as the dispute is settled. I did think there was something along those lines already in place, but apparently not.

Then, of course, there's a need for a complete revamp of the CRA industry. I recently saw the relationship between CRAs and creditors described as "organised crime"; an apt description if ever there was one.

You are contesting this with them. If you're in the right, but you don't get a result make sure you cancel everything you have with MBNA and brief against them at every opportunity.

Out of intererst, what exactly do you get for your £140?

One more point; I recently got a £12 "fine" from MBNA (refunded) when I cancelled a DD without giving them seven days' notice. I didn't default, nor miss a payment, nor pay late, so I wonder if that little nugget will be reported to the CRAs? If so, under what category? Anyone know?

Flying_Demon

Thanks GingerBob, in my case for the £140 not a lot (travel insurance, car breakdown etc). I think I've used the card once in the 2 years I've had it (and paid off the balance immediately).

I'd be interested to know if removing any default whilst the matter is investigated is what they should be doing, there attitude at the moment appears to be tough.

thebritishbloke

Flying_Demon wrote: »

I'd be interested to know if removing any default whilst the matter is investigated is what they should be doing, there attitude at the moment appears to be tough.

Nope, if they did this then someone who has 10 defaults on their account could just dispute it the day before applying for a mortgage. Then they'd get approved for a mortgage, then when the companies confirm the default is valid, it goes back on but it's too late because they've already got their mortgage.

It'll be in your T&C's that you're responsible for paying the fee each year, I don't think contesting with them about it is going to help. You can try, but don't get your hopes up.

GingerBob_3

thebritishbloke wrote: »

Nope, if they did this then someone who has 10 defaults on their account could just dispute it the day before applying for a mortgage. Then they'd get approved for a mortgage, then when the companies confirm the default is valid, it goes back on but it's too late because they've already got their mortgage.

The problem is, this only works one way, in favour of the lender/loads of other organisations, all of whom feel obliged to report you to the CRAs. So defaults should be marked as "contested".

thebritishbloke

GingerBob wrote: »

The problem is, this only works one way, in favour of the lender/loads of other organisations, all of whom feel obliged to report you to the CRAs. So defaults should be marked as "contested".

I agree that would be more suitable, I highly doubt that it would make any difference though. If I was a lender and I saw you had a contested default, I'd just tell you to come back when the decision has been made on whether you did default or not.

GingerBob_3

thebritishbloke wrote: »

I agree that would be more suitable, I highly doubt that it would make any difference though. If I was a lender and I saw you had a contested default, I'd just tell you to come back when the decision has been made on whether you did default or not.

Or you could ask for an explanation.

Frankiesphone

MBNA !! bane of my life !

Nothing but problems from the start. As for the 'advice' delivered by their so called customer service team, absolutely shocking!

May I suggest you get yourself a Twitter account and shout their poor service from the roof tops :cool:

happy_bunny_2

Send them a complaint.

If they reject it, refer to the FOS.