Stoozing: Make Free Cash from Credit Cards article discussion

YorkshireBoy

The best approach with MBNA (and other providers, but especially with MBNA) is to set a statement date that gives them the maximum time to set up the direct debit.

They're not allowed to collect a DD if they haven't given you at least 10 days notice of both the date and the amount to be collected, and the only way they can do this (automatically) is via the statement.

So, when you call to activate the account/card, set the statement date to 'yesterday', ie calling on the 14th...then set the statement date to the 13th of the month. That way, you're giving them 28-31 days in which to set it up.

As Jimmy says, check the first statement for the message "your minimum payment will be collected from your nominated account on or after xx/xx/xx"...or words to that effect. If it's not there, then pay by other means and check the second statement.

epsilondraconis

I've been reading this forum for a while and I have to say that YorkshireBoy provides some great posts. It was one of his posts that got me into stoozing - for which I'm very grateful.

Anyway, nothing else to add other than saying cheers YourshireBoy for all of your efforts when providing your replies, they are always very clear and understandable. Keep up the good work - I'm sure you've helped a good number of people...

Edit: I'm not saying that others don't give good advice, they obviously do. It's just that when I see YorkshireBoy has posted something, I always read it because it will typically be of use somewhere down the line. Thinking about it, CannyJock is also another poster with some great advice.

clio

Aye Y/B is good with his replys .. well done matey

MarkV_2

I am complaining in writing but I don't think it is a foul up. There are articles on the internet about MBNA and Capital One being the most complained about and if they are targeting customers.
I also found a couple of articles from people saying they are MBNA staff. They said that the only way to be sure that a direct debit had been set up was to phone the next day and check.
Speaking to friends in America they say that American banks are using any methods possible to recoup money and this type of thing is quite common there.

YorkshireBoy

MarkV wrote: »

There are articles on the internet about MBNA and Capital One being the most complained about

If you search the internet you'll find more complaints about Ford cars than Morgan's. Could it be because there are more of them?

I also found a couple of articles from people saying they are MBNA staff. They said that the only way to be sure that a direct debit had been set up was to phone the next day and check.

That won't give you your answer (although it will tell you a request is 'in the system'), because DD's take a while to set up and the ONLY way to tell is to ask your bank/check online, and then check your statement for the aforementioned message "your minimum payment will be collected from your nominated account on or after xx/xx/xx".

MarkV_2

Unfortunately we were away when the first statement came in and when we returned we did miss the next payment part of the statement, but it would have been too late anyway as from opening the first statement to the second arriving was only 2 days.
The real question is if the delays in setting up the direct debits are deliberate.
After checking various sites on the internet there does seem to be a theme about MBNA and Capital One including a couple of posts from people saying they work for MBNA and the only way to be sure a direct debit is set up is to phone the next day.
While telling some American friends, that live in America, they said that this is happening all the time there. Banks are making or not making changes, putting the changes on the statements and then rely on human nature not to see it. They also said that in America there are questions on if banks are targeting customers as it has been suggested that most complaints, about this type of action, come from people who have other debts but a good income so that they are unable to pay the MBNA debt off but would be able to make the payments. I would fit into this criteria apart from one thing. I could pay the MBNA debt off, but guess what, they would not take the payment over the phone.
I may be paranoid but there are big profits to be made out of doing this. Transfer £10.000 at 0% and charge £300 for doing it. Try to encourage a breach of contract and charge £230 interest and set the interest rate at 29%. If the debt is paid off that is a cool £530 profit on £10.000 over 4 to 6 weeks. If the debt is not paid off then all that interest for years.
As I said I may be paranoid but I have made up my mind what I think.

MarkV_2

I quite agree about Ford and Morgan, however there are other large companies that don't seem to get the amount of negative comments that MBNA get.
MBNA have always had the reputation, both here and America ,for being very aggresive in dealings with their customers and I have known that for a long while as I have to deal with them professionally. I also know, as I work for a large American financial institution, that there is more bad news to be released by American banks. Not a surprise.
All institutions that were caught in the sub-prime fiasco are trying to replace funds as quickly as possible. Especially the American institutions
American mortgage companies are finding this difficult. Insurance companies are trying to trickle feed the truth about their problems while they try to re-coup some of their losses or hide them. The banks are doing the same but they will try to re-coup losses from their customers. Both banks and insurance companies have and will, to make it look like they are on top of the situation find some President, Chairman or some other top executive to act as a scapegoat. They will of course have a huge severance payout, share options and full pension.
The conclusion I have reached is that if the American institution do have bigger problems, than they have so far reported, then they will become more aggresive in their dealings with customers. I will be avoiding them until everything is more settled.
Of course as I work for one of them I could be the unhelpful person on the other end of the phone if you have a problem.

avfcforever

I've just got a 10 month 0% credit card from the Halifax and am looking for the best account to put the money in to get the best returns. Any recommendations?

JimmyTheWig

avfcforever wrote: »

I've just got a 10 month 0% credit card from the Halifax and am looking for the best account to put the money in to get the best returns. Any recommendations?

Do you pay income tax?
If you are married, does your spouse pay income tax?

If the answer to either of these is "no" then go for the best paying instant access or no-notice savings accounts, such as Kaupthing Edge. See http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#topaccounts.

If you have to pay income tax on interest then have you used your ISA allowance? See http://www.moneysavingexpert.com/savings/best-cash-isa#best.

avfcforever

JimmyTheWig wrote: »

Do you pay income tax?
If you are married, does your spouse pay income tax?

If the answer to either of these is "no" then go for the best paying instant access or no-notice savings accounts, such as Kaupthing Edge. See http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#topaccounts.

If you have to pay income tax on interest then have you used your ISA allowance? See http://www.moneysavingexpert.com/savings/best-cash-isa#best.

Thanks for the quick reply jimmythewig

I am not married, and my partner does pay income tax as we are both in full time employment. I have already maxed my ISA for this financial year also so was looking for the best rate where I can access it instantly as have also set up the 10% regular savers account (but there are penalties if you withdraw within 12 mths).. Any suggestions?