by Sean

MBNA Hit by Customer Paydowns

MBNA said its earnings were “impacted by unexpectedly high payment volumes” from its U.S. customers. The move by customers to pay down their credit card bills, particularly on high-interest-rate cards, reduced the dollar value of managed loans in MBNA’s portfolios.

Card companies don’t make as much money when customers either pay their bills on time or pay down their outstanding credit card debt.

Ah, isn’t that just too damn bad? Maybe if the bastards would quit pulling crap like triggering Universal Default rate clauses at the drop of a hat, their customers wouldn’t be so quick to reduce their credit load with them.

Or maybe they’re transferring their balances to more reasonable CC companies’ because of tactics like this months bit o’ trickery: I noticed they made my payment due date the 17th, which just by happenstance would be a Sunday. Certainly in hopes that I’d send it at the last minute without realizing that ‘hey, mail doesn’t get delivered/banks don’t do business on Sunday – I better send this a few days earlier…’, thus triggering a late fee. Followed by that Universal Default rate, no doubt. Not that they have a chance in hell of trapping me with this tactic – I schedule a series of automatic payments throughout the month as soon as I notice the billing period’s ended. But I’m sure every month they catch quite a few.

‘What goes around…’ 😉

  • http://ccvictim.com Broke

    These are the credit card stories I like to hear !!

  • http://www.bargaineering.com/articles jim

    I’m glad to hear of MBNA’s “misfortune,” but wouldn’t the 17th be on a different day every month and only happens to fall on a Sunday in April by chance? (it only happens in July of ’05 also)

  • http://www.irregularpayments.com Irregular One [aka Sean]

    I’m glad to hear of MBNA’s “misfortune,” but wouldn’t the 17th be on a different day every month and only happens to fall on a Sunday in April by chance? (it only happens in July of ‘05 also)

    That’d be true enough – assuming my due date would be the same every month. Unfortunately, it’s not; it’s always shifting around a day or three. For instance, looking at my online bill, next month’s is due the 15th, which falls on a (pulling up my calendar)… well, what do you know, a Sunday. That said, I don’t honestly know if it’s been a Sunday consistently (my statements are at home and I am not or I’d look); I’ll have to take a look this evening.

    The real problem with the Sunday scheduling is that they can certainly do a little something for, instead of against, their customers and help avoid this particular potential trip up – after all, they won’t even let me think about scheduling an automatic payment on a Sunday (or a Saturday, for that matter). That they’re not with their paper bills tells me it almost has to be intentional.

  • http://www.bargaineering.com/articles jim

    They change the due date each month!? That’s ridiculous ridiculous.

  • http://www.xemion.com James Paden

    What I do is set a reminder in Outlook 3 days before every bill is due and have it reoccur at that date every month. However, I did run into a problem last week where I thought the payment was due this week, but it was due last week (I don’t know how my reminder got off by 6 days). I’ve got one for each of my five credit cards so it works out nicely.

  • http://renaissance.blogsome.com Chloe

    I’m glad to say that I’m one of the suckers who are taking MBNA down peg by peg. Or at least releasing myself of servitude to that company.

    It’s also great to hear good collective financial news for us little folks, instead of those nasty giants!

  • Kassy Ellefson

    I did my part too! I had a credit line from MBNA and the interest rate went up 2% in 9 months even though I never had a late payment and always paid at least double the minimum. I think I was being punished because they couldnt make money off of me. Well I didn’t appreciate my interest rate going up so I found a credit card with a 0% interest for 4 months then a fixed rate which was 4 percent lower than my MBNA rate. This was a good story to hear, poor MBNA, I wish I could feel sorry for them.

  • http://www.certpaper.com Real Exam

    Great CC tips that I would always have looked for, thanks.

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