Not upheld: Account administration errors complaint against MBNA Limited

Decision detail

Summary

Mr A complained that MBNA unfairly withdrew his 0% promotional interest rate and charged interest on his credit card account. Mr A had completed a £16,000 balance transfer in May 2025 to benefit from the promotional rate, with his first payment due on 12 June 2025. His direct debit payment failed, and although MBNA sent an email on 14 June 2025 clearly stating that payment was required by 13 June 2025 to avoid losing the promotional rate, Mr A did not contact MBNA until 10 July 2025. The promotional rate was withdrawn on 17 June 2025. The ombudsman found that MBNA acted in line with the terms and conditions, which Mr A had agreed to and which explicitly stated that missing a payment could result in withdrawal of the promotional rate. The ombudsman concluded that Mr A had reasonable opportunity to remedy the situation but failed to do so, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Mr A agreed to terms and conditions which explicitly stated that missing a payment could result in withdrawal of the promotional rate. The email dated 14 June 2025 clearly conveyed that a payment had failed and immediate action was required to avoid losing the promotional rate. Although the email requested payment by 13 June 2025 (the previous day), the ombudsman reasoned that if Mr A had contacted MBNA on 14 June 2025 to make payment, the promotional rate could likely have been preserved. Mr A had reasonable opportunity to contact MBNA and remedy the situation but did not do so until 10 July 2025. MBNA provided adequate notice through multiple communications (email, letter, and statement) that the promotional rate had been withdrawn.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website