Am I due compensation due to wrong advice given

therealtruth1000

I am interested to find out if I can claim any compensation from MBNA and if anybody on here has been in a similar situation.

I have two MBNA credit cards both offering 0% balance transfers for 2 years so thought I would enquire about a balance transfer.

I have a Sainsburys loan at 4.5% PA with £12,000 owing. The advisor from MBNA told me I could clear the loan using a balance transfer so took the Sainsburys bank details to clear it off.

Since then Sainsburys have told me you cant clear a loan with a credit card and thats why the balance hasnt cleared. The MBNA advisor also told me to cancel my direct debit which has now resulted in a late payment charge and a note on my credit file.

Who should I complain to at MBNA and how much could I expect in compensation if anything???

Stoneman_2

The only way that you would be able to pay off a loan with a credit card is if it was a money transfer or super balance transfer. Was this mentioned at all?

What proof do you have that MBNA said that you could pay the loan off?

I would guess that the best you could hope for would be for the note on your credit file being removed and the late payment charge fee compensated by MBNA.

stator

Write a letter of complaint to MBNA complaints department. If they can confirm the bad advice they might refund you the cost of the late payment charge. If you're lucky you might get £50 compensation on top?

grumbler

therealtruth1000 wrote: »

...
I have a Sainsburys loan at 4.5% PA with £12,000 owing. The advisor from MBNA told me I could clear the loan using a balance transfer so took the Sainsburys bank details to clear it off.

What bank details?

Since then Sainsburys have told me you cant clear a loan with a credit card and thats why the balance hasnt cleared.

If you can make payments using the above details, why MBNA can't? They do 'money transfers' to current accounts, I don't see how a loan account is different if correct details are used.

thenudeone

It is up to you to ensure that you stay within the terms of the loan agreement.

You should not have cancelled the direct debit for the loan until you KNEW FOR SURE that it had been cleared and there was nothing else to pay (for example any early termination fees).

I am not saying this with the benefit of hindsight. It is just good practice in every case.

It would be more understandable if you had given the card company the details required to clear your other debt AND they had agreed that it definitely would be transferred.
If that happened then you do have a genuine complaint, but it's very unlikely because it is well known that is very unusual for a credit card to pay off a loan balance unless it is specifically mentioned as being able to do so.