MBNA Credit Card Interest Issue

haggismn

Deleted_User wrote: »

There are no grounds to request a refund of the interest. It has been allocated correctly.

From the UK Cards Association:

Now: All card companies will reduce your most expensive
debt first. Check your card company’s Summary Box (on
the back of your monthly statement) for the interest rates
for different types of spending.
How can I benefit? If you don’t normally pay off your
outstanding balance each month, your most expensive debt
will be paid off faster, reducing the amount of interest you
pay overall. The amount you could save depends on how
you use your credit card and how much you borrow.

My interpretation is that purchases interest rate is a higher rate than the BT's, so according to that rule, the purchases should be paid first. May I ask why you think that isn't the case?

[Deleted User]

That IS the case.

But interest is charged on the purchases because the ENTIRE balance - including the BT - is not being cleared each month.

haggismn

Deleted_User wrote: »

That IS the case.

But interest is charged on the purchases because the ENTIRE balance - including the BT - is not being cleared each month.

Interest can be charged from purchase date until date that part is repaid. I interpreted that the OP was continuing to be charged for these purchases after repaying this segment. If that's not the case then never mind.

Feral_Moon

namiku wrote: »

I have never ever read this on any BT guide, offer etc. It must be hidden deep within the T&C.

I find this very displeasing and quite frankly crooked. I would have never transferred the balance had I known this.

So, if I clear the purchase balance before the statement is produced monthly then there should be no interest to pay right?

It's quite clearly stated on the letter offering the BT rates. I know this because I received my letter today. It states the entire balance including BT amount would need to be cleared in full to avoid monthly interest charges on the purchases.

jonesMUFCforever

namiku wrote: »

I have never ever read this on any BT guide, offer etc. It must be hidden deep within the T&C.

I find this very displeasing and quite frankly crooked. I would have never transferred the balance had I known this.

So, if I clear the purchase balance before the statement is produced monthly then there should be no interest to pay right?

Sorry but you are wrong - all credit cards work this way.
Again you are incorrect as per your last paragraph - you will be charged for ANY transaction that is not part of your balance transfer - because you do not get up to 56 day interest free period unless the total balance is cleared every month.

IMO it is best practise not to spend on a card which has a balance transfer on it.

chattychappy

jonesMUFCforever wrote: »

Sorry but you are wrong - all credit cards work this way.

Nationwide is an exception - possibly the only one.

But yes, the deal is really quite simple. Credit cards charge for credit - from date of transaction to date of payment. The "exception" is that if you pay off the entire balance before the due date, then this charge, ie interest, won't be applied.

In most situations, it is not worth putting purchases onto a BT promo card. If this is unavoidable, then it is best to pay off the purchases as soon as the statement is generated rather than wait for a DD to take the payment 3 or 4 weeks later.

MBNA's behaviour is fully consistant with the Lending Code, their own T+Cs and the law/regulation as I understand it. Since alot of people fall into this trap, then whatever views people have about whose fault it is, I can imagine nanny regulators intervening at some point.

redux

namiku wrote: »

I find this very displeasing and quite frankly crooked. I would have never transferred the balance had I known this.

Now you do know it, the best response is spend nothing or only a modest amount on this card from now on. Most new spending on another card.

Ben8282

namiku wrote: »

I have never ever read this on any BT guide, offer etc. It must be hidden deep within the T&C.

I find this very displeasing and quite frankly crooked. I would have never transferred the balance had I known this.

So, if I clear the purchase balance before the statement is produced monthly then there should be no interest to pay right?

NO.
If you make a payment before the statement is produced your payment will be applied to statemented transactions first which will mean that it is applied to the 0% balance and not the purchases.
To reduce interest pay the purchase balance the day after the statement is produced.
EVERY UK issued card in existence, except I believe a Halifax(?) product, charges interest on purchases unless the entire statement balance is paid in full (unless there is a 0% purchase offer on the card).
It is a shame you don't check your statements more often or you would have noticed this.
Stop complaining. You will get nowhere as you have no valid complaint.
If you don't want to pay interest on purchases get yourself a new card to make your purchases on and pay it in full every month.

PS Ignore Haggismn. He is confusing you and speaking of a situation that does not apply here. There is no reason to suspect improper allocation of payments.

JamesPeter

I have a MBNA 0% 'all round' credit card which I have for any emergency card purchases I may need (vets bills pending insurance pay out etc). For purchases it has 24months @ 0%. I haven't used the card as it is purely an emergency standby (I use a different banks rewards CC for everyday purchases and pay it off in full every month).

My intention is to bin this card when the 0% purchase rate is down to about 6 months and open another longer period 0% purchase card elsewhere, again as an emergency standby.

The MBNA card also offers 0% balance transfers and 0% Money Transfers (with the 'one off' percentage cost of course), however all the marketing e-mails I have ever received from MBNA include the following note:

''Important: if you pay your balance in full every month to avoid interest on card purchases, please consider whether making a transfer is right for you. Card purchases will only remain interest free if you continue to pay the whole balance (including the amount of any transfer) in full every month, otherwise interest will be payable.''

Which seems pretty self explanatory. To the OP, check the MBNA e-mails that you receive, the above will be on there somewhere (with the bold 'Important')

JP

chattychappy

Ben8282 wrote: »

Stop complaining. You will get nowhere as you have no valid complaint.

Agree there is no valid complaint, but the OP might get some kind of one-off refund. Seems to me that CCs often do this on a one-off basis because it is cheaper than handling an esclating complaint and losing a customer.