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I have followed the sites advice and templates but recieved the following from MBNA and would like some help please.
"We refer to your recent corrrespondence concerning default fees on your account. I would like to clarify the situation from our perspective.
We have always set out precisely what our charges are in our agreement with you, as they are an integral part of the terms and conditions under which we are prepared to provide credit facilities. Late payments by customers cause us to incur substantial costs in dealing with their default.
Similarly, we have set credit limits carefully for each customer for good reason. We expect every customer to respect their credit limit. If a customer goes over their credit limit, he or she is using the card in a way that is not allowes, in effect obtaining unauthorised borrowing. We, therefore, lend more than we agreed to and take on risks which we never accepted in the first place. In the case of both late payments and overlimit usage, and also where a cheque or direct debit is returned unpaid, we look at the portfolio as a whole and set uniform charges reflecting our costs of dealing with such defaults overall, as do all other major credit card providers. This approach allows us to be clear and upfront about all default charges and the basis on which they are applied.
You may know that the office of Fair Trading issued guidelines in April 2006 in relation to the level of credit card default charges across the industry. MBNA disagrees with the OFT's interpretation of the law and continues to maintain that its default charges have always been FAIR, LEGAL AND TRANSPARENT. However, we decided to reduce our default charges to £12 with effect from 28 June 2006 for late payments aand returned payments, and 28 July 2006 for overlimit fees. You will have recieved notificatioin of the changes to the terms and conditions, which we expect you to honour. Term 3a explicitly details the amount and circumstance of each charge.
Nevertheless, we wish to resolve your complaint to your satisfaction. We would therfore like to offer you a goodwill payment of £xxx, which will effectively reduce all of the fees you have paid, to the reduced fee of £12. WE MUST REITERATE THAT WE DO NOT ACCEPT THE OFT's POSITION, and that this payment is offered solely as amatter of goodwill. I have arranged for this payment to be credited to your account. I trust that you will find this an acceptable resolution.
IN RELATION TO FEES CHARGED SINCE JULY 2006, WE WILL NOT MAKE ANY OFFER TO SETTLE THIS ELEMENT OF YOUR COMPLAINT. AS I HAVE EXPLAINED ABOVE, OUR FEES ARE FAIR, LEGAL AND TRANSPARENT AND ARE CONSISTENT WITH THE OFT's GUIDELINES"
It then goes on about the usual FOS blurb.
So is the standard reply you reccomend enough?
If MBNA disagree with these guidelines why did they reduce charges to the level suggested by the OFT?
I also insisted on a cheque is it their usual practice to apply refunds to an account?
Any help much appreciated.
"We refer to your recent corrrespondence concerning default fees on your account. I would like to clarify the situation from our perspective.
We have always set out precisely what our charges are in our agreement with you, as they are an integral part of the terms and conditions under which we are prepared to provide credit facilities. Late payments by customers cause us to incur substantial costs in dealing with their default.
Similarly, we have set credit limits carefully for each customer for good reason. We expect every customer to respect their credit limit. If a customer goes over their credit limit, he or she is using the card in a way that is not allowes, in effect obtaining unauthorised borrowing. We, therefore, lend more than we agreed to and take on risks which we never accepted in the first place. In the case of both late payments and overlimit usage, and also where a cheque or direct debit is returned unpaid, we look at the portfolio as a whole and set uniform charges reflecting our costs of dealing with such defaults overall, as do all other major credit card providers. This approach allows us to be clear and upfront about all default charges and the basis on which they are applied.
You may know that the office of Fair Trading issued guidelines in April 2006 in relation to the level of credit card default charges across the industry. MBNA disagrees with the OFT's interpretation of the law and continues to maintain that its default charges have always been FAIR, LEGAL AND TRANSPARENT. However, we decided to reduce our default charges to £12 with effect from 28 June 2006 for late payments aand returned payments, and 28 July 2006 for overlimit fees. You will have recieved notificatioin of the changes to the terms and conditions, which we expect you to honour. Term 3a explicitly details the amount and circumstance of each charge.
Nevertheless, we wish to resolve your complaint to your satisfaction. We would therfore like to offer you a goodwill payment of £xxx, which will effectively reduce all of the fees you have paid, to the reduced fee of £12. WE MUST REITERATE THAT WE DO NOT ACCEPT THE OFT's POSITION, and that this payment is offered solely as amatter of goodwill. I have arranged for this payment to be credited to your account. I trust that you will find this an acceptable resolution.
IN RELATION TO FEES CHARGED SINCE JULY 2006, WE WILL NOT MAKE ANY OFFER TO SETTLE THIS ELEMENT OF YOUR COMPLAINT. AS I HAVE EXPLAINED ABOVE, OUR FEES ARE FAIR, LEGAL AND TRANSPARENT AND ARE CONSISTENT WITH THE OFT's GUIDELINES"
It then goes on about the usual FOS blurb.
So is the standard reply you reccomend enough?
If MBNA disagree with these guidelines why did they reduce charges to the level suggested by the OFT?
I also insisted on a cheque is it their usual practice to apply refunds to an account?
Any help much appreciated.
(Previously held by Moi, I believe, but I don't mind you taking my title lol)
someone got out the right side of bed this morning !
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