# MBNA New Terms



## dieter1 (22 Sep 2009)

Did anyone get a letter from MBNA recently about new terms?

Looks like if you are paying the minimum per month (currently €25) you will get hit with a €7 fee for this service.

Also they have extended cash purchases (higher percentage rate) to include gambling sites and paypal.  All cash purchases now have a fee of €2.50 aswell.

There are other changes there aswell but these are the main ones that stuck in my head.  

I have emailed MBNA for clarity on these new terms but just wondered if anyone has received this letter.


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## debtors161 (22 Sep 2009)

yes i have got the same thing, but it gets better, if u dont pay and fall to months in arrears ur interest rate will go up to 25-32%


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## Towger (22 Sep 2009)

Yes, I think it is time for a new credit card. No more travel and purchase insurance as well.


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## thespecialon (22 Sep 2009)

dieter1 said:


> Looks like if you are paying the minimum per month (currently €25) you will get hit with a €7 fee for this service.




How do you mean? If you only pay the minimum you get a €7 fee?
How about if you pay 1euro more than the minimum?


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## demoivre (22 Sep 2009)

thespecialon said:


> How do you mean? If you only pay the minimum you get a €7 fee?
> How about if you pay 1euro more than the minimum?



The op has misread it. If your balance is less than €25 your min payment is the total balance. If your balance is €25 or more your min payment is whichever is greater of €25 *or *any charges for payment protection, interest and default charges _plus_ €7.


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## GrumpyOldMan (22 Sep 2009)

Towger said:


> Yes, I think it is time for a new credit card. No more travel and purchase insurance as well.


 
+1
 with the amex blue retiring - time for a retail banking review methinks.


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## dieter1 (22 Sep 2009)

Towger said:


> Yes, I think it is time for a new credit card. No more travel and purchase insurance as well.


 
no more purchase insurance?  does that mean if I buy a flight and the airline go bust that I'm on my own?

The €7 charge doesnt make any sense to me, they have agreed a interest rate percentage with you (10.4% for me 14.9 on cash) - now they just want to charge people €7 for the craic?


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## TheShark (22 Sep 2009)

Yes I got that letter last week , needless to say I am now in the process of changing provider.


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## Squonk (22 Sep 2009)

dieter1 said:


> Also they have extended cash purchases (higher percentage rate) to include gambling sites and paypal.  All cash purchases now have a fee of €2.50 aswell.
> .


 Does this mean Paddy Power and Ebay?


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## onekeano (22 Sep 2009)

I received it also - any recommendations for better offerings than MBNA. Have to say I found the service pretty good over the years but if they are making themselves uncompetitive then its time to move.....


Roy


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## Bronte (23 Sep 2009)

I can't get over that people would gamble and pay wiht a credit card.


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## demoivre (23 Sep 2009)

dieter1 said:


> no more purchase insurance?  does that mean if I buy a flight and the airline go bust that I'm on my own?
> 
> The €7 charge doesnt make any sense to me, they have agreed a interest rate percentage with you (10.4% for me 14.9 on cash) - now they just want to charge people €7 for the craic?



As I said above. If your balance is less than €25 your min payment is the total balance. If your balance is €25 or more your min payment is whichever is greater of €25 *or *any charges for payment protection, interest and default charges _plus_ €7. For many this will_ reduce_ the min repayment and so ensure that you stay indebted for longer _if_ you only make the min repayments. Someone with a €5k balance will be knocking €7 euro per month off the principal if they only make the min repayment  !! Oh and don't forget the €30 per year stamp duty charge!


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## Blackberry (23 Sep 2009)

Most Card Issuers now charge a cash advance fee for gambling and Paypal transactions (correct and proper).  This is because the card schemes treat such transactions as such.

With respect to the irish market, I could be wrong but I think AIB is the only card issurer treating such transactions as a purchase transaction.

Could be worth giving them a call.


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## Towger (24 Sep 2009)

Dear Sirs, Can you please confirm if €2.50 free per Cash Purchases in your new Terms and Conditions apply to PayPal transactions? 

Dear [Towger], Any transaction sent by a merchant as a cash transaction will be classed as cash and the applicable fee will be charged, 1.5% of the transaction with a minimum of euro 2.50. You would need to contact Paypal regarding how they class certain transactions. Kind Regards, MBNA


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## gunnerfitzy (26 Sep 2009)

BOI Gold Advantage do not impose cash advance charge on Paypal transactions.


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## eirefinq (27 Sep 2009)

i suppose the moral of this story is that u should just pay off your balance every month, if you dont they can charge what they like!


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## mollser (29 Sep 2009)

I must admit I just chucked the new t&c's in the bin 

However, the Sunday Times have it that interest is now also charged from the moment you purchase goods, rather than the up to 58 days interest free period that is standard with Visa cards (these new terms reflect that of a mastercard?) - this doesn't appear right to me.  If somebody can confirm this is correct I am cancelling straight away.  

This is a shocker if true...


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## bond-007 (29 Sep 2009)

It is partly true.

What they say is they will charge interest from the date a transaction is posted to your account. The only exception is where you clear your full balance by the due date. 
So if you only make the minimum payment, retrospective interest back to the date of posting will be charged.


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## Daffodil (21 Oct 2009)

bond-007 said:


> It is partly true.
> 
> What they say is they will charge interest from the date a transaction is posted to your account. The only exception is where you clear your full balance by the due date.
> So if you only make the minimum payment, retrospective interest back to the date of posting will be charged.


 
This is untrue.  I paid off my balance in full and was still charged interested.  I queried it and was told that they start charging interest on a daily basis for the date of the statement until the due date. So even if you clear your balance in full before the due date you will still get charged interest. I won't get charged interest next month but am mad that I was charged interest this month after having cleared my balance.  Getting rid of this card immediately - not worth it !!


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## Berni (21 Oct 2009)

Daffodil said:


> I paid off my balance in full and was still charged interested.


 
Was that a balance that was outstanding from a previous month, or just purchases made in that month?


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## Daffodil (21 Oct 2009)

It was just a balance from the previous month - I hadn't used the card at all during the previous 6 months.


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## Berni (21 Oct 2009)

That is very odd so. Their site still says the following - "_Up to 58 days interest free on card purchases –__ when you pay your statement balance in full and on time each month_", and that matches my experience with them. 
I've just checked my online statement, and it doesn't show any interest applied this month either, so it doesn't seem to have changed.


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