MBNA 0% balance transfers - BEWARE !!!!

I'm not going to say this at all. Companies can't expect you to read their T&C each month to see if they have changed, it not a reasonable thing for them to do at all.

I recommend that you escalate this up the company and then complain to the Banking ombudsman (assuming it is he who handles credit cards - someone will correct me if it's not)

tim

Tim,

Yes. I have now put my concerns in writing to them to see what they say. In my experience, you normally get a more considered response than speaking to an agent on the phone.

No - agreed they cant expect you to read the T+Cs every month (although they do say they did send me a letter), however, I suppose they can expect me to read my statement every month.

The thing is I'm not saying it wasnt my fault - it was - its just that the penalties now imposed on me for a simple mistake seem rather severe.

You don't need to read the T&Cs. It's on the statement (the minimum payment amount).

Andy

"tim (not at home)" wrote

Perhaps that's true, but surely they *can* expect you to read the "minimum payment" shown on their statement?

"tim (not at home)" wrote

... now there's a "blast from the past"!!

When you say 'Banking Ombudsman' do you mean Financial Ombudsman Service, otherwise known as FOS?

Rob Graham

Yes. Agreed. I should have noticed...

but like I said, my issue is their inflexibility of a minor mistake on my part which is costing me so much in interest fees....

I'm doubtful if I'd have a case, would I? They have acted within their T+Cs and it was my fault after all.

All I can say is that its a little unfair, thats all. Surely the Ombudsman wouldnt intervene here?

I think they might. What's happening with the excessive penalty charges saga? This must surely count, since the interest being charged is in effect a penalty for not complying with the T&C's.

I was in a very similar situation several years ago. I paid my minimum 5 about 8 days late (I thought I had paid it), then missed one statement so by the time I realised they had removed my 0% balance transfer deal I had paid about 280 interest.

It was of course my fault as I should have read the T & C's, paid the 5 on time, and noticed it on my first statement (as it would have been less).

However I argued that to end up paying 280 as a result of paying 5 8 days late was totally disproportional, and that I would be prepared to pay something like 10 or 15 and they should refund me the rest.

I went through their Customer Services and wrote to various people within the company and was offered over 100 back, but I was still paying a penalty of over 150.

In the end I wrote to the Financial Ombudsman and (surprise, surprise) within a few weeks someone else in their Customer Services rang me to say it had all been a mistake and they would refund me the whole amount.

I suggest you pursue it as far as you reasonably can with MBNA, then if you are not satisfied with the outcome, write to the Financial Ombudsman.

Let us know how you get on.

Adrian

Adrian,

Thanks for the advice. I'll certainly do that...

I had a similar tale a few months ago, where I transferred a balance to a card. I rang to check I still had a direct debit set up on the account (i'd had it for years), and was forced to use their automated service - it said there was already a direct debit set up, so I couldn't set up another.

When the bill came, no payment had been taken, and they were now claiming there was no DD set up, and charges were added, transfer rate removed etc.

I did manage to get the original transfer deal reinstated after speaking to a couple of the customer service guys on the phone (got nowhere the first time, had to call back) - I pointed out that I could prove i'd rang their freephone information line when I said I did, and would take it further since it was giving out incorrect information.

I did end up paying a few pence in interest on the interest, but I couldn't be arsed arguing over that given it was saving me several hundreds of £££

Not necessarily. If it has been 5 "for ever", it is not unreasonable for the cardholder to overlook it.

The OP should certainly complain to the FOS, if MBNA persist.

Why this enormous deference towards T&Cs ?

One side to a contract has no right to arbitrarily and/or without sufficient notice change the terms of the contract without drawing adequate attention to the change. (It can indeed only be done at all if the original contract permits it). Adequate attention-drawing requires more than simply changing the amount on the next monthly statement.

Surely it's better to have paid the minimum by direct debit rather than standing order, then this wouldn't have happened. But as others have said, keep on complaining to MBNA and, if that doesn't work, go to the Financial Services Ombudman.

Regards,

Yes. Agree. It was not clever of me to pay by SO rather than DD.

Would the FSO look at something like this though? As others have said, MBNA havent really broken any rules, and it was my fault ultimately. All they could be accused of is maybe being a bit opportunistic.

Yes. Agree. It was not clever of me to pay by SO rather than DD.

Would the FSO look at something like this though? As others have said, MBNA havent really broken any rules, and it was my fault ultimately. All they could be accused of is maybe being a bit opportunistic.

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I see no reason why not. Just console yourself with the thought that the bank will get a bill from the Obundsman which is bigger than the sum you are arugeing about

tim

Can't believe they can do this...

Had 12000 on a 0% balance transfer deal with MBNA. Paid the minimum payment of 5 every month by standing order.

Last month, they changed the terms and conditions and changed the minimum payment to 10. Yes, I know I should have checked my statement... ======= The 0% deals usually have a percentage minimum payment rather than a fixed monetary sum don't they?

The ones I've had usually seem to be min 3% of o/s balance per month so it changes each month forcing me to check my statement otherwise i don't know how much to pay.

No, i've got ~£5k on an Abbey card (now part of MBNA) and the minimum payment on that is only £10

Credit card companies do send out letters advising changes to T&C. I guess most people bin them unread.

In this instance, I cant remember having recieved one, but like you said, I may have just binned it...