Serious MBNA warning!

Grumpy_chap

bestusernameever said:

Yeah I can still accept the offer. I guess the standard terms were written before such promotions existed and just left alone. They don’t feel in the spirit of the offer and should probably be made clearer but I won’t be making that mistake again

Well, it is certainly possible to see how you made the error in understanding.  I can't be certain that I would not have fallen foul in a similar way.

Grumpy_chap

I just thought it might be worth the OP checking how any payments now made will be treated / ordered.
It may be possible that the CC will repay the lowest interest rate debt first (i.e. the promotional zero percent balance), while leaving the standard rate debt to accrue further interest.

grumpy_codger

Grumpy_chap said:

I just thought it might be worth the OP checking how any payments now made will be treated / ordered.
It may be possible that the CC will repay the lowest interest rate debt first (i.e. the promotional zero percent balance), while leaving the standard rate debt to accrue further interest.

Aren't they legally required to allocate payments to statement balances with higher interest?

Grumpy_chap

grumpy_codger said:

Aren't they legally required to allocate payments to statement balances with higher interest?

I don't know.

I just looked online and the first couple of cards do pay off the highest interest debt first.  I cannot confirm that is a legal obligation or universal.

grumpy_codger

https://www.handbook.fca.org.uk/instrument/2021/FCA_2021_35.pdf

6.7.4 R A firm must first allocate a repayment to the debt subject to the highest rate 
of interest (and then to the next highest rate of interest and so on) for:
(1) the outstanding balance on a credit card ...

MSE: 

Credit card crack down

Credit card payment trap ends

DullGreyGuy

Grumpy_chap said:

grumpy_codger said:

Aren't they legally required to allocate payments to statement balances with higher interest?

I don't know.

I just looked online and the first couple of cards do pay off the highest interest debt first.  I cannot confirm that is a legal obligation or universal.

Its a regulatory requirement however its the statemented balance and there are no legal regulations on how to deal with the case where there are multiple pots with the same current interest rate (long thread recently with some believing the rules should be interpreted such that a balance that will become a higher interest rate in the future earlier should be prioritised over one that will increase later)

martinbainbridge1975

avoid mbna like the plague they tried to tell me a credit in my name was not my account, i had the only card on the account and statements both with my name on. incompetence at its finest