MBNA Residual Interest

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10to1

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Just thought that any MBNA credit card customers should be aware of a change to the terms and conditions since June 2007 whereby customers who miss a payment and pay interest in the next months statement will continue to pay interest the following month on the balance on the account even if the amount is paid in full by the due date.

They call it residual interest. In essence customers who fail to clear the statement balance by the due date, lose the 'up to 56 days' interest free on the following month.

I've been caught for it this month and have complained. They say that all customers were notified in writing in May 2007. This may be so. But they don't mention it on statements, nor do they in calls to customer service. Is this sharp practice?
 
Cheers for the heads up first I heard of it , also if the payment was short say a euro then interest is charged on the full amount never been caught with interest as
I've a direct debit for payment in full but they seem to the most expensive card on the market. I would'nt be with them out of principle only for the axa points
 
I know the pain. I did not get a bill last month so went online to find out that I owed less than 2 euro that was due the previous day! I was hit with a 15.24 late charge and 6.24 in interest and told that the interest will continue to mount. I always pay the bill in full each month, but because of business expense I charge sometimes in excess of 2000 Euro/month. I spoke with them a couple times regarding this over the last few days. They say it's "Irish law" -- I would be a bit alarmed if it was -- it sounds more like business practise that is allowed under law. This will be an expensive lesson for me.

The staff were quite rude in their explanation (a regular Bord Failte), despite having been a customer over 12 years. In the end I am closing the account and sending them the card in shreds and will do my business with a group that values customer service and loyalty - maybe the Americans (Express) are worth a go . . .
 
I did post a reply to another query a few weeks ago and in it I stated that if you get a bill from mbna with interest on it ie say a €200 bill which includes €5 interest then you should pay off more than €200 because there will be interest on the €200 beween them sending out the bill and you paying it off and that means that all purchases on the next bill will have interest from day one as they original €200 bill wasn't fully paid off - even by paying the €200.
 
Ted
Took your advise and it worked. Funny enough then they tried to sell me additional products for my business. What a joke. Still intend on cancelling the account, as they are not very customer friendly and can be quite rude on the phone.
 
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