0% balance transfer credit card costs customer a fortune

A thirty nine year old credit card customer was outraged recently after being charged a small fortune on his 0% credit card because of a small oversight that meant he had paid £5 less than he was supposed to on his minimum monthly repayment.

This occurred because the minimum monthly amount that he needed to pay was increased from £5 to £10 but the customer didn’t realise that the amount had gone up, and failed to amend his direct debit.

As a result of this oversight the customer, Paul Williams, was charged £12.00 by MBNA, his card issuer. The credit card that he had was a 0% balance transfer credit card onto which he had transferred higher interest balances in order to give him time to get his finances sorted whilst avoiding paying interest on his credit card debts.

However, MBNA also withdrew the 0% offer as a result of the oversight and tried to charge the customer £170 in interest on his balance.

Mr Williams said he was shocked that MBNA had acted this way over such a small oversight. He said: ‘I was shocked and stunned when this happened. ‘I put my hands up that I made a mistake, but to ruthlessly withdraw my 0% rate and charge me interest at the full rate because of one basic error is harsh.’

After discussions with the customer the card issuer finally agreed to refund the charges and reinstate the 0% status on the credit card.

The details regarding withdrawal of facilities was hidden in the small print on the credit card terms and conditions, and this is an issue that is being taken up by watchdogs at present, who aim to stop card companies from burying important information in the small print.