MBNA 6 months intrest free rip off

kingshill16

I transferred £1000 pounds to my MBNA Master Card from a previous credit card paying £30 for a six months interest free deal. When my first bill arrived I paid for all my monthly transactions (including the £30 balance transfer fee) plus an extra £20 which should of reduce my interest free balance to £800. This month I was charged over £35 interest on my outstanding balance.

MBNA customer services told me that the payment made was taken off my interest free balance and I was charged interest on the outstanding amount. They explained that I would only get six months interest free if I didn’t use the card during that period. WHAT A RIP OFF!!!!! :mad:

Phantom_Flan_Flinger

What they've done is standard across the whole industry.

You should have fully read the T&C's of the card, which state that payments go on balance transfers first.

I'm afraid there's no rip off.

sicker

Sorry to hear of your 'mistake'. You will live and learn now that you have found this site. Most of these 'problems' are highlighted here. Hope you keep searching.

John

mark1024

They catch people out with rules like this. You always need to have nothing on a credit card before doing a balance transfer, as if you do it will sit there for the life of the transfer, accruing interest. Any payments usually go towards the element with the lowest interest (to benefit the bank) Also never use the card for purchases once you have done a transfer.

Also, if you miss a (full) payment with MBNA they will charge an element of interest on the statement following the one where you pay the amount in full. This is also pretty unclear.

Having said that I did just do a balance transfer with MBNA myself and enjoy making a little bit of money out of them !

johnmoney05

Yes. I think most of the cards do that. Some even charge for the transfer fee. So have to play safe.

cm233lh

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

[FONT=arial,helvetica,sans-serif]Never, ever, ever, ever, ever…[/FONT]

[FONT=arial,helvetica,sans-serif]…spend on a card after balance transferring to it![/FONT]

Do your homework before playing the card companies at their own game, otherwise you're going to loose. (but I think you've learned that now!)

nomoneytoday

Its called a negative payment hierarchy and used by 99% of cards. From memory Nationwide are one of a handful who don't do it...

payless

http://www.nationwide.co.uk/creditcard/GoldCard/order_of_payments.htm

wheres mbna t&c

We will use your payments to reduce balances at lower rates of interest before balances at higher rates of interest. Where you have two promotional rates which are the same, we will use your payments to reduce the balance with the longer promotional period first.

exel1966

Just like the other 99.9% of posters who use the words RIP OFF, SCAM, CON in their posts they usually haven't been, but are themselves guilty of either assuming they know how the systems work, wilfully ignoring them or just not understanding them.
Once bitten, twice shy ! Welcome to MSE where you'll soon learn to check and double check everything as a matter of course !