Lost Promotional rate

Strachan103

Hi
I have accumulated a debt of around £10k on MBNA credit card. The payments were comfortable as I had the debt on low/promotional interest rate deal. However, I was late making a payment and they have removed the promotional rate meaning the rate will be considerably higher. I have logged a complaint but they haven't reinstated the promotional rate. Is there anything I can say for them to change their stance? Anyone offer advice on what FOS might decide? I fear I will have difficulty servicing the debt at the higher rate.

Thanks

[Deleted User]

Unfortunately if you make a late payment it can invalidate promos.

If you've asked and they've refued then you can try asking again.

FOS will agree with MBNA

It'll be in the Ts ans Cs

eskbanker

Too late now I suspect but the usual recommendation on here is basically to ask nicely if they'll let you off for a 'first offence', so if your response was to log a complaint (when they haven't done anything wrong) that's unlikely to work out to your advantage....

msallen

As mentioned above, making a complaint over something that is your own fault is not going to win you any friends at MBNA.

The only way that a promo rate is ever reinstated is as a gesture by the CC company after you express regret at your mistake and put plans in place to stop it happening again, so I would suggest you call them up and tell them that you now understand that this is all your fault, apologise for the late payment and the complaint, and ask to set up up a direct direct for the minimum payment going forward (as I assume you did not have a DD set up previously, hence the missed payment).

chattychappy

!!! wrote: »

If you've asked and they've refued then you can try asking again.

Yes, I would try this. Phone them up and grovel. Tell them about your bad day, your designer allergies, cry a little, tell them how much you love MBNA, tell them you know it's all your fault and you deserve time in the Tower... but how much nicer your world would be if they can help you out... or at least meet half way.

!!! wrote: »

FOS will agree with MBNA

How do you know? Can you point to a previous FOS ruling on this?

!!! wrote: »

It'll be in the Ts ans Cs

We all know by now that just because something is in the T+Cs, doesn't make it lawful. Many years ago, the T+Cs specified penalties of £25 and they were found to be unenforceable. No doubt PPI was in the T+Cs once.

I believe these "gotchas" where you get a promotional rate removed for being late with a single payment may well be unenforceable. CCs are meant to treat people fairly and penalties are meant to reflect the cost to the CC of a breach. It seems to me that the CCs build into their business model that a certain percentage of cardholders will "mess up" and lose the promo offer early. Removing a promo deal for a single missed payment is, in my view, a disguised form of penalty. Fair enough to charge you the £12. But why should it cost you more because you are on a promo deal, does it cost them more when you are late and a promo deal?

So if you get no joy with the grovelling approach, you could make a complaint on the basis above. That the removal of the promo deal is a disguised form a penalty that exceeds the cost of breach and is unfair. It may well be that MBNA will back down rather than risk a ruling from the FOS. The experience here is that most CCs do indeed reinstate offers.

NOTE, I'm not saying that it IS unlawful to remove promo offers in these circumstances. To my knowledge there hasn't be a ruling either way, and it may well be that CCs would prefer not to have it tested.

Alternatively: just see if you can get another card and transfer the balance again. You'll take the hit of a BT fee (probably 3%).

[Deleted User]

chattychappy wrote: »

I believe these "gotchas" where you get a promotional rate removed for being late with a single payment may well be unenforceable. CCs are meant to treat people fairly and penalties are meant to reflect the cost to the CC of a breach.

Why would it be unfair or unenforceable?

In my view, the rules around promotional rates are clear. It's not a penalty if you lose the promo rate. If they added more interest to the standard rate on the card, that would be unfair.

The banks give every opportunity to make the payments on time, including being able to set up a direct debit. In fact, most banks push setting one up really hard.

Anyway, the OP will need to appeal to the good will of the bank. I've always said you get more with being nice than going down the formal complaint route.

Caz3121

Strachan103 wrote: »

I was late making a payment and they have removed the promotional rate meaning the rate will be considerably higher. I have logged a complaint but they haven't reinstated the promotional rate.

what is the complaint? why were you late making payment? was it MBNA's fault? you could have had a direct debit set up for the minimum payment to avoid this

MABLE

They were hardly going to upheld the OP's complaint when all they were doing was following their terms and conditions. However I would be inclined to phone them and ask nicely if they would reinstate the promotional rate and offer to set up a dd.

I have direct debits set up on all my credit accounts but usually pay manually. However if i ever forget I know the dd will be actioned.

Sncjw

You were late making the payment and it would have been explained to you when you taken out the card if you don!!!8217;t pay on time then you will loose the rate.

Phone them up and ask nicely. Are you paying off the 10k at all?

breaking_free

As others have said, phone them up and ask nicely; it worked for me.

I accidentally missed two payments on my Sainsbury's credit card (I had a direct debit set up to make payments each month, but then closed the bank account and forgot to set up payments from my other account). This was entirely my fault so I tried the softly, softly approach and a very understanding chap reinstated the promo rate for me. Pity he couldn't wipe out the interest charges I'd incurred for not making payments on time, sigh.