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  • FIRST POST
    • MSE Archna
    • By MSE Archna 31st Aug 10, 9:00 PM
    • 1,874Posts
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    MSE Archna
    Credit card shake-up begins with MBNA payment overhaul News Discussion
    • #1
    • 31st Aug 10, 9:00 PM
    Credit card shake-up begins with MBNA payment overhaul News Discussion 31st Aug 10 at 9:00 PM
    This is the discussion thread for the following MSE News Story:

    "Credit card shake-up begins with MBNA payment overhaul..."

    Report inappropriate posts: forumteam@moneysavingexpert.com




Page 1
    • Consumerist
    • By Consumerist 31st Aug 10, 10:53 PM
    • 5,226 Posts
    • 2,610 Thanks
    Consumerist
    • #2
    • 31st Aug 10, 10:53 PM
    • #2
    • 31st Aug 10, 10:53 PM
    The banks must be hopping mad by now.

    PPI mis-selling is already costing them a small fortune and the repayment re-ordering is going to in the future, without the need to claim anything.

    If we think bank charges are obscene now, I suspect we aint seen nothin' yet.

    It just does my heart good to see them suffer as they make us suffer.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • YorkshireBoy
    • By YorkshireBoy 31st Aug 10, 11:00 PM
    • 30,745 Posts
    • 18,758 Thanks
    YorkshireBoy
    • #3
    • 31st Aug 10, 11:00 PM
    • #3
    • 31st Aug 10, 11:00 PM
    It just does my heart good to see them suffer as they make us suffer.
    Originally posted by Consumerist
    Just remember though, there will only ever be one winner in this 'game'.

    "24.9% APR (typical)" anyone?

    "Up to 40 days interest free" anyone?
    Last edited by YorkshireBoy; 31-08-2010 at 11:03 PM.
    • Consumerist
    • By Consumerist 31st Aug 10, 11:10 PM
    • 5,226 Posts
    • 2,610 Thanks
    Consumerist
    • #4
    • 31st Aug 10, 11:10 PM
    • #4
    • 31st Aug 10, 11:10 PM
    It is fortunate that most of the banks' obscenities are avoidable but methinks you're right that there will be only one side winning here.

    Who do we think will ultimately pay for the banking levy - not the banks, that's for sure. Just the condoms method of stealth tax.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • exel1966
    • By exel1966 31st Aug 10, 11:11 PM
    • 4,815 Posts
    • 11,861 Thanks
    exel1966
    • #5
    • 31st Aug 10, 11:11 PM
    • #5
    • 31st Aug 10, 11:11 PM
    It just does my heart good to see them suffer as they make us suffer.
    Originally posted by Consumerist
    And you as the consumer(ist) will be made to suffer even more in the long run for as YB states there's only ever going to be one winner as someone, somewhere will have to pay for this and that usually means those who stay within the rules.
    • Consumerist
    • By Consumerist 31st Aug 10, 11:37 PM
    • 5,226 Posts
    • 2,610 Thanks
    Consumerist
    • #6
    • 31st Aug 10, 11:37 PM
    • #6
    • 31st Aug 10, 11:37 PM
    And you as the consumer(ist) will be made to suffer even more in the long run
    Originally posted by exel1966
    I think that's what I said, isn't it ?

    But still enjoying the moment.
    Warning: In the kingdom of the blind, the one-eyed man is king.
  • piripiri
    • #7
    • 1st Sep 10, 8:51 AM
    • #7
    • 1st Sep 10, 8:51 AM
    First post so be gentle! I am a bit of a saddo when looking at financial products and it appears to me that Nationwide may have played a blinder here as whilst they are less punitive than the likes of MBNA, when you actually read their T&C's their order of payments means that you will still suffer some pain as they pay off lower rate balances such as penalty fees and interest at any rate before paying of higher rate balances. I might be wrong here so would appreciate any advice! I think all the banks will try and re-coup the monies, just in future they will have to be more open about it!
    • Percy1983
    • By Percy1983 1st Sep 10, 9:19 AM
    • 4,990 Posts
    • 7,824 Thanks
    Percy1983
    • #8
    • 1st Sep 10, 9:19 AM
    • #8
    • 1st Sep 10, 9:19 AM
    Shame its too late to help me, I had a 3k cash advance at 29.9% sat under a balance of 7k at 18.9% with the Halifax. As it is I am going to make the final blow and clear the card next month but if this would have saved me quite a bit of money.

    Yes I shouldn' have took the cash but it was needed at the time.
  • kolin
    • #9
    • 1st Sep 10, 12:39 PM
    • #9
    • 1st Sep 10, 12:39 PM
    Shame its too late to help me, I had a 3k cash advance at 29.9% sat under a balance of 7k at 18.9% with the Halifax. As it is I am going to make the final blow and clear the card next month but if this would have saved me quite a bit of money.

    Yes I shouldn' have took the cash but it was needed at the time.
    Originally posted by Percy1983
    I'm with you, Ive still got 4000~ on cash advances on my credit card that i'm paying off with HSBC, and they still take the purchases first

    when I asked HSBC when they planned to implement the reverse order of payments, i got this wonderful reply.
    Thank you for your e-mail dated 3 August regarding your credit card account.

    Please note that repayments will no longer pay off the balance with the highest interest first (cash - purchases - balance transfers (BTs)). The balance with the lowest Annual Percentage Rate will now be paid off first (BT - purchases - cash).

    I would like to advise you that our new Payment Hierarchy is in line with the industry. It also enables us to offer more flexible product offerings and remain competitive within the market. Please be aware that we are one of the few issuers who only charge interest from the date transactions (including cash) are posted and not the date the transaction is made - this can give you a couple of days interest free.

    I am sorry to inform you that we will be unable to change the payment allocation method.
    what is the point in asking these people questions.
    • callum9999
    • By callum9999 1st Sep 10, 2:23 PM
    • 3,950 Posts
    • 2,408 Thanks
    callum9999
    I'm with you, Ive still got 4000~ on cash advances on my credit card that i'm paying off with HSBC, and they still take the purchases first

    when I asked HSBC when they planned to implement the reverse order of payments, i got this wonderful reply.


    what is the point in asking these people questions.
    Originally posted by kolin
    Apart from Sygma, I always get stupid responses like that. It's like a computer just picks up key words and sends out an automated response!
  • izools
    Apart from Sygma, I always get stupid responses like that. It's like a computer just picks up key words and sends out an automated response!
    Originally posted by callum9999
    What did Sygma have to say on the matter? I don't owe them any cash but it'd be nice to know
    Cashback Earned Nectar Points 68 Natoinwide Select 62 Aqua Reward 100 Amex Platinum 48
  • princess*daisy
    Just remember though, there will only ever be one winner in this 'game'.

    "24.9% APR (typical)" anyone?

    "Up to 40 days interest free" anyone?
    Originally posted by YorkshireBoy
    http://forums.moneysavingexpert.com/showthread.php?t=2694163

    Now it all makes complete sense :rolleyes:
    A journey of a thousand miles begins with a single step. Started 15/03/2011.
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    6380 5800 CC2 - 2673 2238 Loan - 12172 10731 Total - 21225 18769 11.5% (2456) paid

  • izools
    Shame its too late to help me, I had a 3k cash advance at 29.9% sat under a balance of 7k at 18.9% with the Halifax. As it is I am going to make the final blow and clear the card next month but if this would have saved me quite a bit of money.

    Yes I shouldn' have took the cash but it was needed at the time.
    Originally posted by Percy1983
    How did you even get 3,000 cash from the card!? 10 trips to the cashpoint? or 5 trips to one and when it ran out 5 trips to another

    I kid, obviously you had it paid straight into your current account.

    Have you looked at getting a Clarity card from Halifax once you've cleared this one, save the expensive fees if you're in a tight spot needing to do this in the future?
    Cashback Earned Nectar Points 68 Natoinwide Select 62 Aqua Reward 100 Amex Platinum 48
    • MOPI
    • By MOPI 1st Sep 10, 8:57 PM
    • 180 Posts
    • 45 Thanks
    MOPI
    Hi can I just check does this sort of thing apply to the following scenario:
    If I have a 0% purchases credit card with a balance of 300 but 12 of this 300 is a late payment charge, which would usually accrue interest. I would usually have to pay off the other 288 on the card before I could get to paying off the 12 charge along with any interest that it may have accrued in the meantime. Does this new ruling mean that in the above scenario the late payment charge would be paid off first?

    Thanks in advance.
    • fozmcfc
    • By fozmcfc 1st Sep 10, 9:17 PM
    • 3,032 Posts
    • 2,198 Thanks
    fozmcfc
    I'm wondering if the card companies really will lose out.

    Before spending on a 0% BT card was a no, no, now it is a possibility, even an emergency cash flow problem, no longer need cost the earth.
    • Consumerist
    • By Consumerist 1st Sep 10, 9:34 PM
    • 5,226 Posts
    • 2,610 Thanks
    Consumerist
    Hi can I just check does this sort of thing apply to the following scenario:
    If I have a 0% purchases credit card with a balance of 300 but 12 of this 300 is a late payment charge, which would usually accrue interest. I would usually have to pay off the other 288 on the card before I could get to paying off the 12 charge along with any interest that it may have accrued in the meantime. Does this new ruling mean that in the above scenario the late payment charge would be paid off first?
    Originally posted by MOPI
    My understanding is that the order of payment depends on the interest rate payable. i.e. Whatever is at the highest rate gets paid off first.
    Warning: In the kingdom of the blind, the one-eyed man is king.
  • mrbigd
    Do the card issuers have to show a balance per interest rate?

    Tesco do at the moment, not sure about anyone else.

    I.e

    BT at 0% 1000
    Cash Advance at 20% 250
    Spend at 15% 350

    If a person pays a minimum payment then it would clearly go against the Cash Advance, however, what if the person wanted to clear both Cash Advance and Spend from a previous statement then would they have to calculate this themselves?
    • Consumerist
    • By Consumerist 2nd Sep 10, 10:37 AM
    • 5,226 Posts
    • 2,610 Thanks
    Consumerist
    So far as I am aware, there is no obligation on the bank to put a break-down of your balance into the various types of debt on your statement but you should be able to ask the bank's customer disservice for a break-down. A refusal would, I think, be unlikely but if they do refuse then that would be grounds for a formal complaint.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • snappy2004
    • By snappy2004 2nd Sep 10, 12:09 PM
    • 20 Posts
    • 8 Thanks
    snappy2004
    If i currently have 3000 outstanding @ 17% with a 10000 limit and have an offer from MBNA to perform a 0% money transfer for 9 months.
    Could I make use of the money transfer by transferring 3000 to my current account and then pay it back to MBNA to reduce the overall %? as the payment would pay off the balance with the highest rate first.
    • Consumerist
    • By Consumerist 2nd Sep 10, 12:40 PM
    • 5,226 Posts
    • 2,610 Thanks
    Consumerist
    If i currently have 3000 outstanding @ 17% with a 10000 limit and have an offer from MBNA to perform a 0% money transfer for 9 months.
    Could I make use of the money transfer by transferring 3000 to my current account and then pay it back to MBNA to reduce the overall %? as the payment would pay off the balance with the highest rate first.
    Originally posted by snappy2004
    On the face of it, that sounds reasonable providing you can pay off the 3,000 before the end of the 0% BT period. It's going to cost you another 120 (4%) up front for the super-balance transfer against around 350 (very rough estimate) in interest charges if you only pay minimum repayments over 9 months.

    Edit
    According to MSE Loan Calculator you will need to pay 357 pm to repay the 3,000 over 9 months @ 17%. At 0% that reduces to 333 per month. Can you manage that ?
    Last edited by Consumerist; 02-09-2010 at 12:52 PM.
    Warning: In the kingdom of the blind, the one-eyed man is king.
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