Complaint Review: MBNA Canada

I use the MBNA MasterCard since year 2000. Usually, I had no issues with them.

Month and a half ago they suggested me the BALANCE TRANSFER with 0% interest rate for 6 or 7 months. I agreed and requested $10,000 transfer with $100 transfer fee charged upfront.

I was continuing using my MasterCard as usually within a $5,000 limit I still had.

When the first statement arrived, I saw the ~$14,000 balance on it. I called MBNA and asked if I am going to be charged any interest on $10,000 when I pay my $4,000. The specific answer was No.

Next statement I saw whooping $109 as interest charge. When I called to the bank, I was told that each amount paid towards their credit card is allocated as 25% towards purchases and 75% towards transferred balance, which has is 0% interest rate.

Their advice was to stop using my credit card. It was too late anyway, because this advice should be given before the balance transfer took the place. Now if I wish to avoid paying any interest on purchases, I have to pay off the transferred balance, which is about $7,000 thousands now plus the $4,000 purchases for previous month.

Whole process of borrowing money from them lost any economical point. Two phone conversations were meaningless and charges would not be voided, because the payment allocation rules are in the credit card agreement.

Yes, I know it is my fault because I did not read the credit card agreement every year or even every month to keep such details in mind. I did it only once around year 2000 when I became their customer. However, I feel myself cheated. This is a shameless business practice. I guess I should change my credit card provider.