Interest Charged on CC

I normally pay off my MBNA card every month. The bill arrived last month, E48.65 due. As I was not in a position to go to the bank I let them take the minimum payment by DD E6.37.

I spent a further E171 on the card in Jan and thought nothing more about it.

Imagine my surprise when the bill arrived today and I was charged interest of E3.29. I know it's only a trivial amount but charging that amount of interest on E48.65 is nothing short of highway robbery. Even an unlicensed moneylender wouldn't charge this much.

I rang MBNA and they confirmed that if you don't clear your bill in full they charge you interest on everything you charge to your card after that from the date the amount hits your account. I wonder how anyone carrying a large debt ever gets these leeches off their backs.

Anyway, while I was on to them complaining I found out that I was being charged 18%. I requested a reduction and they agreed that all future interest will be charged at 10.9%. So I suppose that there is a silver lining.




Murt

Yep, this is an old one.

Isn't it interesting how easy it can be to get them to lower the rate if you bother to ask. I wonder is there a case to be made for forcing them to lower the rate for customers automatically rather than waiting for you to ring.

If MBNA have a 10% rate available to existing customers then surely it's not to much to ask that they be forced to pass it on to all customers automatically, perhaps subject to some condition, like you have to have made at least the minimum payment for the past 6 months.

-Rd