FYI : MBNA Payment Allocation

Narola1976

Hi..just in case this information is helpful to anyone...I couldn't work out why the payments I was making did not reduce the balance with the promotional rate ending soonest...it wasn't very clear in the information on the statement.

So just come off the phone with MBNA...they clarified that where there are more than one 0% promotional balances the minimum payment will be taken from the earliest balance transfer - the one you transferred first. So in my case, I opened the account with a transfer which ends in 2020, then a few months later used another offer with a much shorter promotion period ending in Feb 2018. So what will happen is that the payments will continue to be deducted from the 2020 balance until Feb 2018, at which point interest will then start on the 2018 balance and then any payment I make will go to clear this 2018 balance.

Lesson learned.

Weybridge78

Is that what they told you? Seems odd to me anyway.

I have multiple 0% promotional balances on my Barclaycard at the moment, and payments always go towards the balance that is ending sooner.

Although, I have received horribly wrong information from MBNA in the past over the phone during a 20 minute conversation in which I asked something to be clarified numerous times as what the agent was telling me seemed wrong. I found out later from two other MBNA staff that I had indeed been informed the incorrect information, so maybe you have too.

Narola1976

Weybridge78 wrote: »

Is that what they told you? Seems odd to me anyway.

I have multiple 0% promotional balances on my Barclaycard at the moment, and payments always go towards the balance that is ending sooner.

Although, I have received horribly wrong information from MBNA in the past over the phone during a 20 minute conversation in which I asked something to be clarified numerous times as what the agent was telling me seemed wrong. I found out later from two other MBNA staff that I had indeed been informed the incorrect information, so maybe you have too.

Yes, I think its right what they said, because I could see this was happening when I looked more carefully at the statements - yes I did not look close enough before, but once I compared consecutive month statements it was plain as day. That's why I phoned them up as it made no sense to do it that way especially as you say BC allocates to the plan ending soonest. But that is their policy - certainly not designed in the customer's best interests. Which is obviously the point - they are not there to help us after all.

Butch1985

Very strange this. I have an MBNA card and checked the allocation of payments which wasn't clear as to which it would pay off first with multiple BT's. Contacted them and they confirmed the payments are allocated to the first transfer then 2nd and 3rd etc! Glad I found this out as I may have considered multiple transfers with them in future but now I'll not bother

Narola1976

Butch1985 wrote: »

Very strange this. I have an MBNA card and checked the allocation of payments which wasn't clear as to which it would pay off first with multiple BT's. Contacted them and they confirmed the payments are allocated to the first transfer then 2nd and 3rd etc! Glad I found this out as I may have considered multiple transfers with them in future but now I'll not bother

Yes I wish I had paid closer attention. Well another painful lesson learned.

molerat

It is all clearly stated in the T&Cs booklet. Your statement shows "please see clause 4 of your terms and conditions". The moral of the story being ..................