Will I incur a late payment fee, MBNA?

dresdendave

hello19 wrote: »

@Candyapple

Oh no, I failed to see that!! I guess MBNA has made a profit then. It's upsetting to see how these banks are ripping the public off. I'm in the wrong, but they shouldn't be this harsh with the time restrictions as well!

The payment date is not a target to pay exactly on that date, you can pay it anytime after you receive the statement, so about twenty days warning. Surely that's quite a generous "time restriction"?


If you think you should be able to pay a few days late without penalty, presumably you wouldn't be bothered if your employer forgot to pay you on your due date, as long as they got around to paying you a few days later.

chattychappy

Actually I agree a little about the "rip off" point.

In my view, the £12 charge has become disproportionate to the costs incurred by a lender when a payment date is (just) missed. A few years ago when letters were actually posted, somebody reviewed a file or a phone call was made, perhaps it made sense.

As a matter of contract law, penalties are not meant to exceed the cost to the injured party of the breach. Some years ago, following an intervention by the OFT, £12 became a defacto standard. The OFT was at pains to point out that even a lower charge could be unlawful depending on the circumstances of the individual case.

Chrysalis

just give your dad £12 and fess up to the mistake.

chesky

Does it vary from card to card? I always pay my M & S card by debit card the day it's due. It takes a couple of days to leave my current account but I've never incurred a late payment. I did forget to pay once and should have - but I called them and said I'd been unwell and when they looked at my record of always paying, they removed it.

dprice8893

I've just fallen foul of this. I'm usually on the ball and set up the payment for the day before. Unfortunately, on this occasion the due date was on a Sunday and I paid by faster payments on the Saturday.


I know that by their own rules, a late penalty is applied because Saturday isn't a business day. However, a faster payments transaction goes straight into their account and is cleared for use immediately, regardless of the day.


These rules seem to be old fashioned and relate to a time when transactions were completed manually.

YorkshireBoy

dprice8893 wrote: »

I've just fallen foul of this. I'm usually on the ball and set up the payment for the day before. Unfortunately, on this occasion the due date was on a Sunday and I paid by faster payments on the Saturday.


I know that by their own rules, a late penalty is applied because Saturday isn't a business day. However, a faster payments transaction goes straight into their account and is cleared for use immediately, regardless of the day.


These rules seem to be old fashioned and relate to a time when transactions were completed manually.

The payment due by date is not a target to achieve! It's the last date by which payment should be received, processed (through their clearing bank collection account), and posted to your account.

Have you considered a direct debit (for at least the minimum payment)?

In your circumstances, the payment would have been called on the Monday (or Tuesday if Monday was a Bank Holiday), and still not been late.

Of course you'd still need to be "on the ball" and remember to have cleared funds in the current account!

pathtofreedom

If you are very unlucky it might also show as a late payment on his credit history depending on if you've managed to get it paid in time or not. If you do end up with a late fee it might be worth seeing if they can wave the credit file update too, it can't hurt to ask. Unless you have power of attorney though they might not be able to talk to you about this anyway, so you'll have to tell your Dad and get him to call.

dprice8893

dprice8893 wrote: »

I've just fallen foul of this. I'm usually on the ball and set up the payment for the day before. Unfortunately, on this occasion the due date was on a Sunday and I paid by faster payments on the Saturday.


I know that by their own rules, a late penalty is applied because Saturday isn't a business day. However, a faster payments transaction goes straight into their account and is cleared for use immediately, regardless of the day.


These rules seem to be old fashioned and relate to a time when transactions were completed manually.

Well fair play. After my phone call on the due date, they've credited my account with the late fee penalty. I'm impressed.

YorkshireBoy

dprice8893 wrote: »

Well fair play. After my phone call on the due date, they've credited my account with the late fee penalty. I'm impressed.

What did they say about the late payment marker being applied to your CRA files? You did ask them?

dprice8893

YorkshireBoy wrote: »

What did they say about the late payment marker being applied to your CRA files? You did ask them?

To be honest I didn't ask. Although I use credit cards, I'm at the time in life when I don't need credit, if that makes sense.


I've got four credit cards and always pay the balances off every month. I'm told this has a negative effect on your credit rating anyway, so who knows?