MBNA Loan - have they been naughty?

[Ace of Spades]

This loan belongs to my husband. Looks like about £1400 to reclaim in charges and interest will post spready up in a sec to check all ok.

 

I came across something a bit naughty on MBNA's part whilst looking for charges, and wondered if there's anything worth doing here?

 

The statements show interest is applied on the payment date, before the payment is taken off - fair enough. However, where a direct debit was returned unpaid, they have firstly added the returned DD amount to the loan, then added the charge, added the interest, then finally taken the direct debit off - so they have added more to the loan balance before applying interest! This happened on a few occasions throughout the loan.

 

Are they allowed to do this? It doesn't seem right to me...

 

I have also attached the loan agreement and DN, would be grateful if anyone could cast an eye over them to check they're ok.

[Ace of Spades]

I just had a closer look at the agreement:

 

Loan amount £7000

Charge for credit £2775.69

Total £9775.69

 

60 installments, 1 of £182.92 all others £162.92.

 

so 59 x 162.92 = 9612.28

add the 182.92 = £9795.20!!

[dx100uk]

thats std with PENALTY charges

thats why we always use a CI sheet

 

dx

[Ace of Spades]

thats std with PENALTY charges

thats why we always use a CI sheet

 

dx

 

I did wonder!

 

Do you have any comments about the loan agreement being wrong?

[citizenB]

Is that the actual condition of the 2nd page ?

[citizenB]

What does clause 6.5 on the 2nd page of the agreement state - this is the clause they say you have breached on the Default notice.

 

Is that a copy that has been provided to you, or is it the original that was sent to you in 2010 !

[Ace of Spades]

Hi Citizen,, the copy is pretty poor - it is not the original but is "an exact photocopy" that was received when they were CCA'd in 2010.

 

I can just make it out:

 

Any payment made by you to us will take effect on the date on which it is blur to the account blur that the payment clears. If you fail to pay blur amount blur under this agreement you will if we ask you blur (and without affecting our blur rights) pay that amount and/or any other amount that may become due by direct debit or cheque and you will blur blur the blur or direct debit is met on first presentation.

 

Perfectly clear!