minimum payment less than interest MBNA

ALDB66

Hi there,

I have a direct debit set up to make the minimum repayment on my MBNA credit card (I know this is foolhardy and will be addressing this issue asap!).

Last month, I noticed that the payment they requested was less than the interest that I had been charged. (I hadn't spent anything on the card as I never use it now, but I think maybe an interest free period had ended meaning the minimum repayment was higher than usual.)

I thought that this was not allowed to happen, but I'm not sure who's to blame. I would have thought it was up to them to ensure that the payment was sufficient to cover any interest plus a small amount of the balance? If they have broken any rules do I have any redress?

My other query is, it's seems to be really difficult to tell from the statements exactly what interest is being charged on cards where you might have taken a deal at some point. I want to get my house in order and make sure the low or zero interest deals I have are still 'live', but it isn't always clear on a card where I might have secured different deals at different times. Do I just need to keep more careful records at the time of taking any deals out?

Thank in advance.

[Deleted User]

Can you post up the last couple of statement balances, min payments and dates.

PeacefulWaters

How long have you had the card?

How many days were in the billing cycle?

msallen

Are you sure your statement doesn't tell you your promotional rates. On my MBNA statement, on page 3, it shows "Your rates of interest" and under that there is a "Promotional Monthly Rates" and a "Standard Interest Rates" section.

I have one entry under "Promotional Monthly Rates" which states :
0.00% until 23 Jan 19 (and other info showing the balance at that rate and whether it was made up of a balance transfer, purchase etc).

bengalknights

Your promo should definitely show on both the statement and on your online account.

Its usually on the last page of statement

chattychappy

ALDB66 wrote: »

Last month, I noticed that the payment they requested was less than the interest that I had been charged. (I hadn't spent anything on the card as I never use it now, but I think maybe an interest free period had ended meaning the minimum repayment was higher than usual.)

I thought that this was not allowed to happen, but I'm not sure who's to blame. I would have thought it was up to them to ensure that the payment was sufficient to cover any interest plus a small amount of the balance? If they have broken any rules do I have any redress?

The Lending Code (https://www.bba.org.uk/wp-content/uploads/2013/12/2011-Lending-code-revised-28-Sept-2015.pdf) does have this provision at para 129:
Subscribers should ensure that the minimum monthly repayment covers more than that month’s interest. This means that the minimum repayment will cover that month’s interest and a proportion of the balance outstanding from the previous month.

But subsequent paragraphs contradict this apparent "rule" and talk of it as a principle that should apply over a year. Also the Lending Code isn't "law". It's just a code, though failure of an agreement to follow it could be evidence that your T+Cs are unfair.

So I doubt if MBNA have done anything wrong in the case of a one-off. Even if they have, I don't see how you can demand any redress. You were free to pay more and it would be difficult to show what you have lost.

ALDB66 wrote: »

My other query is, it's seems to be really difficult to tell from the statements exactly what interest is being charged on cards where you might have taken a deal at some point. I want to get my house in order and make sure the low or zero interest deals I have are still 'live', but it isn't always clear on a card where I might have secured different deals at different times. Do I just need to keep more careful records at the time of taking any deals out?

On my MBNA cards it was always very easy to see - the bottom of the statement contained a split of the different balances and the interest applied. I can't remember in the case of my other cards, but they should be able to tell you on the phone. Perhaps better to use an online messaging service so you have it in writing.

PixelPound

You need to download the PDF statements and check the rates on the last page. True they don't make it clear, on one part of your statement they will break down your balance into promotional parts and show the promotional code, you then need to correlate that with the rates page to see the rate and when the promotion ends.

ALDB66

Thank you all. I posted before digging a bit deeper but your replies have helped me locate the right information. I was looking at the summary statement and not the PDF!

Thanks again.