MBNA 0% purchase card is not what it seems - advice needed

Cardconcerns

I signed up for a new MBNA 0% purchase credit card in January, with an introductory offer that runs until May 2021. I set up a DD for the minimum payment and have remained within the credit limit.
Belatedly, I have checked my statements and found that I have been charged interest for the past three months. I have called MBNA and they say that the introductory offer only applies to purchases made within the first 56 days. These are then interest free for the full introductory period. This information is not in my monthly statement but MBNA says it is in the terms and conditions.
I have used 0% purchase cards for the past 15 years and never come across such a condition before. Traditionally, the understanding is that introductory rates apply for spending throughout the promotional period provided the minimum payment is made and spending is within the credit limit.
I have reported MBNA to the Financial Ombudsman and also launched a complaint. But has anyone else come across this before? Beware that introductory offers may not be what they seem!

EveryWhere

Yes. Have seen it before. Though it is not prevalent.
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

It's under More long 0% purchase cards

So is it in the T&C sent to you?

MallyGirl

I don't know where you applied from but on this site they make it very clear that the MBNA purchase period is short:

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

about half way down the page under the heading
More long 0% purchase cards

It is also very clear on the MBNA website:

Purchases
0% for 27 months
Pay no interest for 27 months from account opening on the purchases you make in the first 60 days.

molerat

Very common and would have been clearly stated during the application. I very much doubt you have any grounds for complaint.

[Deleted User]

Your complaint will get shot out the water - you don't have a leg to stand on.

It's in the T's and C's that you agreed to when you signed up to the card, and as with most lenders, it's also printed on the statements.

You're wasting MBNA's and the FOS's time

Candyapple

Cardconcerns wrote: »

I signed up for a new MBNA 0% purchase credit card in January, with an introductory offer that runs until May 2021. I set up a DD for the minimum payment and have remained within the credit limit.
Belatedly, I have checked my statements and found that I have been charged interest for the past three months. I have called MBNA and they say that the introductory offer only applies to purchases made within the first 56 days. These are then interest free for the full introductory period. This information is not in my monthly statement but MBNA says it is in the terms and conditions.
I have used 0% purchase cards for the past 15 years and never come across such a condition before. Traditionally, the understanding is that introductory rates apply for spending throughout the promotional period provided the minimum payment is made and spending is within the credit limit.
I have reported MBNA to the Financial Ombudsman and also launched a complaint. But has anyone else come across this before? Beware that introductory offers may not be what they seem!

I made this exact same mistake with MBNA late last year.

I have held 0% cards with MBNA for years before and they always used to be 0% on purchases made throughout the entire length of the period, not just limited to purchases made in first 60 days so it was an easy mistake to make to assume this card would be the same.

When I noticed I was being charged interest after 2 months I did some research and realised that they had changed their terms when Lloyds took them over and it was my mistake for not realising it. What I did do was clear the balance ASAP and asked MBNA nicely if they would refund me the interest I had paid due to my mistake – and they did. I wouldn’t have begrudged them if they didn’t but figured there was no harm in asking.

Ever since Lloyds took over MBNA I feel as though they are no longer competitive for a lot of things. They used to be one of my go to providers but not anymore.

Moral of the story, make sure you read and understand everything and screenshot key info before hitting that apply button.

PixelPound

You often get it with BT too, some will have BT at 0% throughout the 0% period, others in the first X days.

Always read the T&C - I had a Natwest card around 15 years ago that came with a BT offer that I did as part of the application. When the first statement came with interest on I queried, and they said the BT was at 0% but the BT fee wasn't so the interest was on the BT fee that had been added to the account. I was shocked, but my own fault for assuming.

Cardconcerns

Thanks for all the replies. You are right that everyone should always read the terms. However, when I signed up (via Experian) it wasn't obvious that the 0% period was so short. Neither it is mentioned in the summary box on the statement. There is just the usual information about charges after 56 days and promotional periods - not that they now interact differently. I would suggest such an important detail should be highlighted. Perhaps most obviously, I have had numerous 0% cards over the past 15 years and this has never been the case before.
Anyway, I have now paid off the balance and will close the account. I am about £85 out of pocket which is annoying but not the end of the world.
Wow - didn't realise there was so much aggression on this board though...

Cardconcerns

I have checked Experian and it is there in the click down details - so it is my mistake. It seems like a remarkably underhand business practice though - it's effectively false advertising. Anyway, I'll stop whining now.

[Deleted User]

How is it false advertising if the information is there?

And what was the point of closing the account down?
Out of spite?

Cardconcerns

I think the general principle of any financial product should be that it basically does what it say on the tin. If the headline offer is 28 months 0% interest on purchases, it should be a fair assumption that's what's available. Historically, that has always been the case.
I closed the account because it has no value for me. I already have a credit card that I use for purchases, and Amex for cashback. MBNA was simply to get a bit of my household spending deferred for 28 months. That is not now an option as I have had to repay it in full to avoid further interest. In a couple of months once my credit record has settled I will look for a new 0% purchase card and will be more vigilent this time.