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Credit card charges.

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  • 30-06-2012 11:15am
    #1
    Skoochie
    Registered Users Posts: 10 ✭


    Have a credit card and have been paying just above the min. payment each month. Have not used the credit card since april. When the interest is applied it puts the card over the limit and mbna is charging me overlimit fees each month. Do overlimit fees apply when it is interest that has brought the account over it's limit and when they are calculating the min. payment due should this not make allowance for interest and charges to be applied. Feel like I am in catch 22 with the card and being scammed by mbna. Is this legal? Any one else ever been caught up in this type of situation with a credit card?


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    #2
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Why would they not apply? The limit is the maximum balance you can hold on the card, including interest and any other fees. If you breach that limit, the fee would apply.


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    #3
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Calling it a scam is ridiculus. You have to pay interest on the balance. If you are only paying the minimum or thereabouts your balance is going to increase every month as the minimum would not be enough to cover the interest which would be applied even. They are entitled to charge it. If the interest puts you over the limit then thats your issue. For instance if I have a limit of €2k and spend it all at once by your reasoning they cannot charge me interest as I have reached my limit.

    Have you considered trying to get a personal loan to clear the credit card and then cancel the card. The personal loan would be better as better interest rate than the CC.

    Otherwise if you are in financial difficulties then talk to MBNA about freezing the interest while you try pay it off. You wont be able to use the card if they do this.

    Other option is to pay more than you are now if its an option.


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    #4
    Skoochie
    Registered Users Posts: 10 ✭Skoochie


    It's not the interest I'm questioning, I know I've to pay interest on the amount I owe, it's the overlimit charges. On a bank a/c if the bank charges are applied and it brings you into overdraft (un-authorised) the bank does not charge you an overlimit charge, but if say for instance I use my card on the bank a/c and the transaction brings me into un-authorised overdraft, the bank charges an overlimit item fee. I thought this was the same with credit cards.


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    #5
    filmbuffboy
    Closed Accounts Posts: 894 ✭✭✭filmbuffboy


    Skoochie wrote: »
    It's not the interest I'm questioning, I know I've to pay interest on the amount I owe, it's the overlimit charges. On a bank a/c if the bank charges are applied and it brings you into overdraft (un-authorised) the bank does not charge you an overlimit charge, but if say for instance I use my card on the bank a/c and the transaction brings me into un-authorised overdraft, the bank charges an overlimit item fee. I thought this was the same with credit cards.

    if you go over the limit on a credit card for any reason, even because interest was applied and if went over your agreed limit, an overlimit fee kicks in.

    thats a standard. its your responsibility to manage the card to make sure it does not go over the limit for any reason


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