Thread: re credit card isit legal that balances @ lower rate are paid off before higher rate?

2f We will use your payments to pay off balances at lower rates of interest before balances at higher rates of interest. This means that if you have made a transaction at a promotional rate after your last statement date but before the date we receive your payment, we may pay that transaction off first.

just quoting MBNA terms and conditions it would be interesting if someone could come up with something "legal " against this ??

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note mbna by their own definition arae using the terms "balances" as if there are effectively two accounts ...... ideas please

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Originally Posted by blacksheep1979

course its legal - if you really pushed it they would say that you pay off the charges you accrued first, which are the lower rate ones.

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ummmmm ok i open an account with MBNA

i take some cash out
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say a month later after my first statement
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I do a balance transfer at a "low interest rate "

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obviously according to "vulturic rules of banking "they would charge you a higher interest rate on the cash
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but what right have they use the payment that i make to counterbalance the amount of money borrowed at th "lower interest " rate ,,,,, this smells of unfair contract from here ........ don't forget we have basically 2 sub-accounts running in tandem