SirOweALot v MBNA Credit Card

[sirowealot]

Hi All

 

Received my letter back in response to my SAR today.

 

They didn't send the full DPA pack like First Direct did, preferring to send my cheque back uncashed and a schedule of charges. As this broadly tallies with what I thought were the charges, I'm not worried about chasing for the full DPA stuff.

 

They kindly offered me a goodwill payment of £400 in full and final settlement. It's supposed to be credited to my account, but it isn't there as of this morning, although the letter was written 2 days ago. Needless to say, I'm accepting it as part payment only.

 

Working through MINDZAI's excellent spreadsheet, I see the following

 

Charges over 6 years - £825

Charges + 8% - £985.39

charges + contractual interest - £1030.84 (at 1.87% pm, 24.95% pa)

Charges + compound contractual interest - £1472.17 (at 1.87% pm, 24.95% pa)

 

I'm going to give them a call and claim for the £1472 once I've got a list of what to say.

 

Has anyone made a "crib sheet" for arguments and counter-arguments before calling MBNA up? If so, I'd be grateful for a copy.

 

SirOweALot

[Glenn UK]

I think generally your plan looks good.

 

Hi All

 

Received my letter back in response to my S.A.R - (Subject Access Request) today.

 

They didn't send the full Data Protection Act pack like First Direct did, preferring to send my cheque back uncashed and a schedule of charges. As this broadly tallies with what I thought were the charges, I'm not worried about chasing for the full DPA stuff.

 

They kindly offered me a goodwill payment of £400 in full and final settlement. It's supposed to be credited to my account, but it isn't there as of this morning, although the letter was written 2 days ago. Needless to say, I'm accepting it as part payment only.

 

Working through MINDZAI's excellent spreadsheet, I see the following

 

Charges over 6 years - £825

Charges + 8% - £985.39

charges + contractual interest - £1030.84 (at 1.87% pm, 24.95% pa)

Charges + compound contractual interest - £1472.17 (at 1.87% pm, 24.95% pa)

 

You appear to have missed out the interest you have paid as a result of those charges. The y will work it out and call it compound interest, which i am sure it is. But it is in additional to what you have claimed and i would revise your claim to take account of it.

TO do this take your charges and work out what 16.9% compounded on each charge had been it will give you a figure to work with. They may provide you with a figure but not the dates it was applied so you have to make a judgement about whether to go with their interest and try to incorporate your interest on the amount you actually paid.

This is where i think i lost £100 or so, probably more when i think about it.

 

I'm going to give them a call and claim for the £1472 once I've got a list of what to say.

 

Has anyone made a "crib sheet" for arguments and counter-arguments before calling MBNA up? If so, I'd be grateful for a copy.

 

SirOweALot

 

The arguments I had to make were over my right to claim the interest i had paid and to charge then interest on top of the amounts i had actually paid out (i.e. charges plus interest paid) so you need to understand that if it went to court thats what you would be claiming on the basis of reciprocity and mutuality, i think the court would agree.

 

They also argued that i couldn't claim back further than 6 years, and i argued that the limitations act wouldn't apply if the court decided they had concealed the nature of their charges or if i had made a mistake in paying them believing them to be lawful.

 

I hope that helps

 

Glenn

[sirowealot]

Hi Glenn,

 

useful stuff thanks.

 

Where you mention the interest on charges you state a figure of 16.9%. Where did this figure come from? My purchase/BT/CHQs and cash transaction rates are all the same... 1.8735% per month (24.95% using (1=0.018735)^12) so do I use that instead, or is 16.9% some legal figure for interest on charges?

 

Still compiling stuff so haven't phoned yet. I think it's worth a few days to sit back and make sure everything is nailed down before I phone.

 

SirOweALot

[sirowealot]

Had a nice letter from mbna today notifying me of a change to my Ts&Cs.

1c. By the payment due date shown on your statement each month, you must pay the minimum payment we request on the statement. This will be an amount that is between 2.25% and 5% of the balance shown on the statement. The amount that we request will depend on the fees and interest you have incurred and whether or not you have Payment Protection Cover. The minimum payment will vary to ensure that the amount you are asked to pay is more that the amount of charges, fees and Payment Protection Cover you have incurred in the previous month. If you have no balance on the statement, you will not have to make any minimum payment.

 

I don't see anything sinister there, but it's co-incidental that it arrives just after the charges statement and "goodwill" payment they made.

 

Anyone have any thoughts on this?

 

SirOweALot

[Glenn UK]

Is this a persnal letter or something pre printed?

 

Glenn

[sirowealot]

Difficult to tell... it has my card number printed in the same type as the rest of the letter, but the signature is digitally printed from Matthew McGrath rather than being hand signed. I feel it is specifically aimed at me, rather than being a general letter to everyone.

 

Never mind, the money they will be paying me back should reduce the account by more than half, so it'll be much easier to pay off!

 

SirOweALot

[sirowealot]

OK, my LBA is in the post today... here's a copy if anyone's interested

 

Mr S Bailey

My Address

Head of Customer Advocate Office

My Town

Insurance Services Department

My County

MBNA Europe Bank Ltd

MY1 1PC

Chester Business Park

Chester

CH4 9YR

30th October 2006

 

LETTER BEFORE ACTION

 

Dear Sir,

 

ACCOUNT NUMBER: 1234 2345 3456 4567

Thank you for your letter of 9th October.

I now understand that the regime of charges which you have been applying to my account in relation to late fees and over limit charges, are unlawful at Common Law, Statute and recent Consumer regulations.

 

I am grateful for your kind goodwill payment of £400, however I accept the sum offered as part settlement only, and on the clear understanding that I will pursue recovery of the remainder of your unfair fees and interest thereon, with a County Court claim if necessary.

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

I am frankly shocked that you have operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

 

I calculate that you have applied £825 in levies which I require repayment for, and further I also claim interest of £662.84 at the contractual rate as set out in the attached list of charges. I believe interest to be justified under the principle of mutuality and reciprocity. Therefore the total amount owed as of today’s date is £1487.84, with interest accruing at a daily rate of £0.91 until the claim has been paid in full by you.

 

I require repayment in full of this money. If you do not comply fully within 14 days then I shall begin a claim against you for the full amount plus my costs without further notice.

 

 

Yours faithfully

 

 

 

SirOweALot

Let's see what they have to say about that!

 

SirOweALot