Multiple 0% interest balances -- why isn't MBNA crediting payments against them in order of expiry?

Strebor

HillStreetBlues said:

Strebor said:

I would like to flag up an issue.........the promo end date.......if you just pay off the amount left on the promo offer the next day MBNA do this tricky thing of allocating it to elsewhere first, so leaving balance you expected to pay off tick up to the 23%.

They claim it's in the terms and refer to on the statement. This makes it impossible to pay knowing where it will allocate on what date. I have mentioned this to them a number of times.

I've taken to ringing up each time to ask the amount and date I need to pay off the exact promo only (multiple promos used)

That usually works, but a bit of a pain. This last time the online messaging personnel initially didn't understand, then when finally answered got it wrong........so I'm having to wait until they reassess it. This isn't good service and just a waste of time, what is there to gain?

Anyway I hope people find it useful and know the risk and therefore check. I'd advise checking with a real human on a telephone.

In the past they reallocated correctly and refunded the interest. I hope they do the same this time.

I can see why this happens.
Interest is calculated daily, if you pay the day after the promo date ends, then any interest won't be calculated till the end of the day, so system will look at what is paying interest rather than what will be paying interest and will debit from that.

Thanks, yes you're probably right ........ However the human was telling me that the interest rate is as per the previous statement before the end, (even though the date of promo end is end of month) so if one applied that logic customers would be paying about 17 days at the full card rate...........this is obviously great for them, but really should this be allowed? As a customer has already taken the borrowing and paid for the fees or interest fair and square, to be hit around their own bad admin seems wrong.

The reason I'm writing this today is hopefully it'll make people aware to watch out as they haven't actually responded to me raising the issue with sensible rule changes.

fluffymitten

Thnaks for the tips on this thread. I have two balance transfers running with NatWest, the introductory one when I first took out the card, expires Oct 2025, and a new one that expires in September 2026. Just noticed that the £900 balance on the 2025 offer is just sitting there and payments are being allocated to the later ending balance transfer.

I've sent them a secure message to complain, and will see if that gets the two most recent payments reallocated to clear that transfer. If not, I'll do as suggested above and repay the remainder a couple of days after the offer expires.

I also noticed that the fees for the balance transfer are separate, interest payable, items and I'm wondering just how much interest NatWest are going to charge me. Will it be backdated to the date I took out the balance transfer or just be applied from the date it expires? I'll soon find out!

Strebor

Strebor said:

I would like to flag up an issue.........the promo end date.......if you just pay off the amount left on the promo offer the next day MBNA do this tricky thing of allocating it to elsewhere first, so leaving balance you expected to pay off tick up to the 23%.

They claim it's in the terms and refer to on the statement. This makes it impossible to pay knowing where it will allocate on what date. I have mentioned this to them a number of times.

I've taken to ringing up each time to ask the amount and date I need to pay off the exact promo only (multiple promos used)

That usually works, but a bit of a pain. This last time the online messaging personnel initially didn't understand, then when finally answered got it wrong........so I'm having to wait until they reassess it. This isn't good service and just a waste of time, what is there to gain?

Anyway I hope people find it useful and know the risk and therefore check. I'd advise checking with a real human on a telephone.

In the past they reallocated correctly and refunded the interest. I hope they do the same this time.

MBNA did reallocate the payment to the correct one, and refunded the interest so it is now correct with the right promo paid off and the right promo restored.

They haven't corrected the system though, so customers beware, paying the day after saying you want to avoid paying high interest will not occur automatically, one has to arrange for when the payment should be made to make sure the system allocates it to the right promo that has just come to an end. Years ago, staff on the phone got this.......now online message or even staff on the phone appear to not realise the implication of what's being asked and therefore don't necessarily respond with the right answer. Which is a pity. It's a pity the system doesn't work with the obvious thing a customer is intending......paying off the ended promo with the same figure that was owning......it makes so much sense, common sense !