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  • FIRST POST
    CelticHarlequin
    MBNA Residual Interest Scam
    • #1
    • 24th Aug 04, 2:18 PM
    MBNA Residual Interest Scam 24th Aug 04 at 2:18 PM
    For those of you with 0% MBNA cards, watch out when you come to clear the balance. Do not wait until the end of your interest free period.

    MBNA have a nasty little scam called “residual interest”. I got my last month’s interest free statement, showing my estimated interest if I did not clear your balance in full. I duly scheduled the payment to clear my balance in full. This morning, I ‘phoned MBNA to check that they’d received the payment and to close my account.

    They did receive the full payment before the required date on the statement, but charged me “residual interest” for the period between the 9 month anniversary of my opening the account and the date that payment was received. Apparently, this is fully explained in the small print!!!

    I offered to pay them the £126.50 interest by debit card over the phone immediately, but they do not accept payments over the ‘phone. I then told them that I would pay the £126.50 today and I wanted them to close the account immediately. They said that if I did that, £126.50 wouldn’t be enough as there would be interest accruing between today and when they actually receive the payment. I finally managed to get them to agree that if I paid £130 today, they would take this as full payment and close the account.

    I have told them that I will be;

    1. warning everyone I know about this scam
    2. writing to Chester Trading Standards Dept (MBNA are based in Chester)
    3. emailing www.moneysavingexpert.com to publicise this scam.

    Their response was to offer to knock £50 off the residual interest if I didn’t do any of those and kept the account opened. I politely told them to shove their £50 where the sun don’t shine.

    To add insult to injury, when I phoned Virgin One to make the transfer this morning, I asked them how long it would take for the money to be received by MBNA. They told me that the money would take 3 days to get from them to MBNA, as it does with any other payment. However, MBNA hold the money in a suspense account for 2 days before applying it to your credit card account. This means that MBNA have your money for 2 days, during which time they are earning ineterest on it in their suspense account, but still charging you interest because it’s not hit your credit card account yet! To me this sounds like theft.

    I advise any of you with MBNA cards to clear them at least 1 full month before the end of your 0% interest period, and when you ‘phone MBNA to cancel your cards tell them that you know about the residual interest scam.

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