MBNA Confusion - Where Payments are Applied

janninew

Good morning,

I'm slightly confused over my MBNA card and where the payments are going.

I currently have 2 separate balance transfer deals active on my account. They are both the same rate, one is a low rate for the life of the balance, the second is the same low rate until 2022.

After looking at how payments should be applied (maybe wrongly!) I assumed payments I'm making would come of the balance that ends first as they are identical rates. However every month the money is coming of the balance for life rate, not the rate that ends soon.

I did ask on the MBNA online chat and she told me if the rates are the same they'll use the money on the balance that will eventually have the highest interest. However that makes no sense because the offer is for the life of the balance so the interest will never go higher, yet the interest on the deal that ends in 2022 will eventually revert to the standard rate.

Are they doing anything wrong here before I query further?

Hoping that makes sense!

Thank you

molerat

Read your T&Cs. All clearly explained. Payments are allocated to the earliest starting offer. Payments will only apply to the highest normal rate offer if they both commenced on the same date.

janninew

molerat wrote: »

Read your T&Cs. All clearly explained. Payments are allocated to the earliest starting offer.

I've read that, my life of balance started in September 2017, my low rate until 2022 started in June 2017 so still makes no sense to me how they are applying payments

supersaver2

janninew wrote: »

I've read that, my life of balance started in September 2017, my low rate until 2022 started in June 2017 so still makes no sense to me how they are applying payments

How bizarre that I was going to make the exact same post after my wife told me the same was happening to her MBNA card.

I've scrutinised the terms and conditions and seems like MBNA aren't applying payments correctly. Reading online though seems MBNA are often an "oddity". I thought they were governed on how they should apply payments as well so the balance that would have the highest interest the soonest had to paid off first?

Think a telephone call is in order.

[Deleted User]

supersaver2 wrote: »

I thought they were governed on how they should apply payments as well so the balance that would have the highest interest the soonest had to paid off first?

No. That's a discretionary call by the lender.

molerat

IMO they are allocating wrongly then. Get a complaint rolling.