I've just discovered, the hard way, what the catch is if I transfer a balance to MBNA's credit card, and its a BIG one.
Over the phone I took out a loan for X amount @ 0% and also transfered a balance for y amount from my wifes card @ 3.9%.
I then used the card to make another €3,000 worth of retail transactions.
I paid €3,000 to the card company at the end of the next month thinking I was paying for the retail transactions but it turns out they allocate any payments to the lower interest amounts before the retails transactions.
So my low interest transfers and loans which were for a fixed period must be paid before I can begin to make a dent on my subsequent retail transactions which attract 18.9%.
To make matters worse the subsequent transactions have no interest free period because as long as the low interest period lasts I technically havent paid off my previous months full amount. It skews everything.
I am SHOCKED. I feel like I have been Mugged. I can not believe they can do this.
They did not explain this practice even though I asked them direct questions about payments. They said it was in my terms when I applied for the card (>5 years ago incidently) except I did not apply - I was given the card when the ACC stopped doing theirs.
I am protesting and they will 'look' into it but can some advise me where I stand and if this is:
(a) standard credit card company practice - as they claim.
(b) Legal and agreed with the Financial regulator.
The only way round the CATCH is that if you transfer balances you cannot use your card again until the end of the low interest period and you have paid off the entire amount.
thanks in advance for any advice.
Over the phone I took out a loan for X amount @ 0% and also transfered a balance for y amount from my wifes card @ 3.9%.
I then used the card to make another €3,000 worth of retail transactions.
I paid €3,000 to the card company at the end of the next month thinking I was paying for the retail transactions but it turns out they allocate any payments to the lower interest amounts before the retails transactions.
So my low interest transfers and loans which were for a fixed period must be paid before I can begin to make a dent on my subsequent retail transactions which attract 18.9%.
To make matters worse the subsequent transactions have no interest free period because as long as the low interest period lasts I technically havent paid off my previous months full amount. It skews everything.
I am SHOCKED. I feel like I have been Mugged. I can not believe they can do this.
They did not explain this practice even though I asked them direct questions about payments. They said it was in my terms when I applied for the card (>5 years ago incidently) except I did not apply - I was given the card when the ACC stopped doing theirs.
I am protesting and they will 'look' into it but can some advise me where I stand and if this is:
(a) standard credit card company practice - as they claim.
(b) Legal and agreed with the Financial regulator.
The only way round the CATCH is that if you transfer balances you cannot use your card again until the end of the low interest period and you have paid off the entire amount.
thanks in advance for any advice.