Mint card balance transfer - to fee or not to fee?

MrChips

I got some junk mail encouraging me to apply for a mint card. The terms said 0% on BTs for 9 months or so, and being a keen stoozer, I took great interest.

The attaching literature mentioned that 2% BT fees applied (subject to a cap of £40). However on the application form itself, the box which one had to fill in detailing which cards you wanted to BT from said very clearly that "no fee of any kind will apply to these transfers". I found this a little confusing but assumed that what was implied was that a 2% fee generally applies but if you BT on application the fee is waived (as is the case on some other cards I think having read Martin's BT article).

I applied for the card asking them to transfer £6000 to my Egg card. However they only gave me a credit limit of £3400. I had deliberately put in a higher transfer request than I thought they would allow me, so that they would transfer the full credit limit on application and I wouldn't have to top up the difference with the 2% fee. But they didn't transfer any of it!

I phoned up to ask why not and to get them to transfer £3400 with no fee but the chap I spoke to said a fee always applies. I quoted what it said on the application form and he said, "oh, yes we know - that was a misprint"!

I would rather cancel the card and get another one with no fee than pay the £40. However I would much prefer keeping this one and BT for nothing! Has anyone else had the same experience with Mint - I don't know how prevalent their junk mail was? Anyone know whether I can argue that their form was misleading and that they should honour the BT without the fee? I think there is some small print which says they have the right to refuse any BT....

moolah_2

Now you've got the card and it is on your credit history you'd be as well doing the BT. You will make more than £40 in interest over the 9 months.

Annoying situation though.

simonleblank

I got the application posted to me. I phoned but was told the charges will apply with no exceptions. I did not apply

YorkshireBoy

MrChips wrote:

However on the application form itself, the box which one had to fill in detailing which cards you wanted to BT from said very clearly that "no fee of any kind will apply to these transfers".

...he said, "oh, yes we know - that was a misprint"!

Did you keep a photocopy of your SIGNED credit agreement? What does it say on there?

Hopefully it'll say the same as your application form. The T & C's on your signed credit agreement are the ones that govern your contract with them! However, if they say they "have the right to refuse any BT" then this may be a get-out clause for them.

Even so, if you feel it is blatantly misleading, why not "threaten" to ask one of the financial regulating bodies to take a look at Mint's advertising strategy and it's compliance with the Consumer Credit Act?

MrChips

Yes, I photocopied everything which I sent off (which I always make a habit of doing just in case of situations like this!).

As mentioned earlier, the application form says, "There are no fees of any kind". However the credit agreement says "Please refer to General Condition 2(j) and our published tariff for details of any fee payable and charges relating to advances, "transfer and save" [i.e. Balance Transfers] transactions, cheques and duplicate statements".

General Condition 2j isn't very explicit saying "The published tariff also includes details of other charges you MAY be required to pay". Tacked on towards the end of the conditions pamphlet it does have a "tariff of charges" which refers one back to condition 2j and here it mentions the 2% fee they WILL charge.

Possibly they are legally within their right to charge me this but I feel I have been misled as if you see in plain English on the application form that NO FEE OF ANY KIND IS PAYABLE, you are inclined to believe it!

When I did phone a couple of days ago, they offered to increase my credit limit to 4,100 without me even asking. I think I will phone hem back asking for the credit limit increase, then write them a letter enclosing a photocopy of my photocopy and saying that I have been misled and requesting that they very kindly honour what they "tricked" me into believing were the terms of the BT and would they please BT the 4,100 to my Egg card without any fee.

I am sure they must be suffering quite a few complaints of this nature if it was a wide scale junk mailing effort, so it is probable they already have some sort of policy of turning down all requests such as this but it can't hurt to ask. Any tips on the tone of my letter?

Should I be angry and threaten to take the matter further if they don't do what I ask, or should I be calm and reasonable and politely ask if they can make an exception in my case? Or somewhere in between?!

YorkshireBoy

MrChips wrote:

Any tips on the tone of my letter?

Should I be angry and threaten to take the matter further if they don't do what I ask, or should I be calm and reasonable and politely ask if they can make an exception in my case? Or somewhere in between?!

Reasonable - this time. You've already had the credit check. This will "hit" you if you close Mint and go somewhere else. Try and negotiate the limit up a bit by way of "compensation". Whatever you do, get on with it quick if the "9 month clock" is ticking.

Cheer yourself up by thinking about the £95 or so you'll STILL make if you service the "debt" from salary and not your stooze pot.

Good luck

MrChips

Ok guys, here is the letter I have drafted - I will be sending it tomorrow. Any tips or comments gratefully appreciated before then! Also should I add a line to say if they don't waive the fee, I will be forced to take the matter further?? BTW the balance on my Egg card isn't actually £6000, this is a fictional amount that I am hoping they will stretch to ;-)

To Whom It May Concern:

Mint card number XXXX XXXX XXXX XXXX

In early June I received a letter from Mint encouraging me to apply for one of their credit cards. At the time I was looking for a credit card to which I could transfer a balance from my Egg credit card and as Mint was offering a 0% interest deal, I readily accepted.

The application form (a photocopy of which is enclosed) explicitly said that “there are no fees of any kind” payable for an option to “transfer and save”. I did read all the terms and conditions which accompanied the form and on some of them, a transfer fee of 2% was mentioned. This apparent inconsistency was a little puzzling but I felt inclined to believe what the application form said, as any reasonable customer would. I assumed that the waiving of the fee was for balance transfer requests made on the original application form (as is the case for other cards I have researched – the fee is sometimes waived for balance transfer requests made at the same time the card is applied for).

However having now received my card and having spoken to your customer services department (several times), I have been told that the claim of no fee applying was actually a misprint and that Mint won’t honour their promise.

I am very disappointed by this as the fact that there was no balance transfer fee was what persuaded me to make the application. I am very aware that many cards on the market have started charging these fees, but there are still several which don’t and had I believed that I would be charged a 2% fee, I would definitely have applied for a fee-free card instead of the one issued by Mint.

I feel that I have been seriously misled in my application and I would like to request that the balance transfer from my Egg credit card (number = XXXX XXXX XXXX XXXX) goes ahead without any fees applied as I was promised on my application form.

The balance on my Egg card is £6,000. My credit limit with Mint is currently £4,100. As compensation for the inconvenience and time wasted trying to settle this matter, I would appreciate it if you increased my credit limit sufficiently to be able to transfer the full balance. If, however, you are unable to do this please transfer as much as possible given my credit limit.

Please get in touch with me if you want to discuss the matter further, either at the address above or on my phone number XXXXXXXXXXX.

Yours faithfully,
Mr Chips

YorkshireBoy

Looks OK. Just a few points...

1/ "Invent" a more realistic balance for your Egg card, eg £5,819.25 *as at the last statement*.

2/ Remove all references to your "research" into other cards, and the policy that many of them now have regarding charging fees for balance transfers - it makes it look like you're a rate-tart/stoozer and know exactly what you are doing! You want to play dumb (no offence!) like you're struggling (but managing) with debt. Know what I mean?

3/ Are you sure you want to give them the "get-out" to just transfer "whatever they can based on the limit they have given you"? Your letter appears to say you want 'x' but will accept 'y'. Why not stick out for 'y' - this way you're VERY CLEAR on what you want.

Finally, you have chosen a good word for a complaint letter - "Disappointed". It's always good to get this word in somewhere.

After all, every card supplier wants to achieve customer "satisfaction". The more successful ones will aim for customer "delight".

Good luck.

MrChips

Thanks YB - will employ your words of wisdom. I will let you all know if it works. Could be a good template letter of sorts for this sort of complaint if anymore money savers want to use it.

Btw, sorry to hear about your fellow Yorkshireman, Richard Whiteley. Tea-time telly will never be the same again...