a different type of stooze

gwapenut

They're for a normal high-rate MBNA card which you thought didn't charge interest if the statement was paid in full.

I've just dug out an old statement from my low-rate card and on the back of that it says much the same thing - interest free period is for card purchases only.

Tell you what though - it may be worth a try if you do have the phone call recorded. Though whether it's worth it for what looks like it may at best become just be a one-off "goodwill" gesture of interest refund, rather than repeating month on month, and at worst a nightmare waste of your time - I don't know.

They deserve it though because it's hidden away in T&Cs and not listed under one of the essentials in their "Money transfers - What do I need to know?" It's no wonder there's confusion over it

leeroy2009

thanks for that, im tempted to call back and see what a second adviser has to to say, I admit it seems to be good to be true that in you can borrow 13k, and as long as its paid back in full by the due statement date you don't pay any interest.

gwapenut

I had doubts after you checked on the phone, but it's such an obvious loophole, it would be all over the stoozing forums.

For instance, there used to be a true John Lewis loophole in the 70s or 80s (I'm told!). You could buy JL gift vouchers on their store card, interest free until the next statement payment-due date ... and pop back straight after to pay off your PREVIOUS statement using the gift vouchers. Perpetual interest-free period. Loophole long gone though.

But I still have a slight doubt after your phone conversation ... you never know. I can't see it though, MBNA are too savvy for that ... surely?

leeroy2009

we will find out for sure mate, it could be a perk of this low rate card who knows, all I can go on is the phone call for now, and the 3 occasions he states no interest if paid in full and we only spoke about money transfers to bank accounts, I just tried calling again but they are shut.


if a second advisor was to say yes you do pay interest from the date of transfer then that is grounds for a formal complaint, as who do you belive? ill try it with a second phone call tommrow and get to the bottom if it.

hugheskevi

I've used the MBNA low rate card in this way several times, moving cash to bank account and then using a balance transfer very shortly thereafter.

There has only ever been a gap between the money going to bank account and then a payment arriving of a few days at most, but I have never been charged any interest.

The main drawback is the need to keep the MBNA card with a high credit limit (unless you are happy with admin of doing multiple trasnfers) but with a nil balance the vast majority of the time. It isn't clear what impact this has on credit assessments, but so far it doesn't seem to have changed much compared to when I didn't have the card.

Ben8282

Is this or is this not a 0% money transfer offer?
If it is, then the question of whether or not the next statement is paid in full or not is not relevent as the 0% offer will be for a fixed period.
If it is not a specific 0% money transfer offer but instead a facility to transfer cash advances directly to your bank account, I will express surprise that such a transfer is apparently being treated as a purchase and not a cash advance.
I wonder what effect a £13K cash advance every month would have if reported as such on a credit report?
If reported to credit reference agencies as purchases, I wonder how apparently spending and repaying £13K per-month would be viewed (against apparent means).

bearcat16

I'm fascinated to know if this works out. My MBNA card has a 2.27% fee for money transfers.

On the back of my MBNA statement it specifically says :

"Interest Free Period :
Maximum 49 days for card purchases, if you pay your balance in full and on time every month. There is no interest free period on any other type of transaction. (See definitions below)"

And in the definitions it says:

"Card Purchase : Any payment made from your account (other than a cash advance, money transfer or balance transfer), by using a card or card number with or without the PIN or ... blah blah"

Still, your T&C's might be different. I'm interested to see the outcome, because if you get away with it, it could be a permanent interest-free loan of £13k that you can earn interest on.