The nation's second largest issuer, and leading "super-prime" credit card specialist, has boosted fees to a "sub-prime" level. MBNA America has raised its late fees and over-limit fees to $39 for accounts with balances over $1,000. MBNA cardholders, especially those near their credit limits, should also be aware the MBNA automatically assesses an over-limit fee whenever monthly finance charges push the account above the credit limit. Among the nation's top VISA and MasterCard issuers, only Metris/Direct Merchants, a troubled sub-prime issuer, assess late fees and over-limit fees at such a high level. Most of the leading issuers charge $35 late and over-limit fees, while Capital One and Household have kept both fees at $29 each. Over the past twelve months, late-payment and over-limit fees have increased 4% and 5%, respectively. According to CardData (www.carddata.com), late-payment fees currently average $31.24, a 45% increase over 1998, and a 176% boost over 1993 levels. Over-limit fees currently average $29.05, a 42% gain over 1998, and a 141% increase over 1993 levels. Under MBNA's new policy, late-payment fees are based on the balance on the business day after the payment due date. Late fees are $15 if the balance is $100 or less; $29 if between $100.01 and $1000; $39 if over $1000. Over-the-credit-limit fees are also based on the balance as of each statement closing date. Over-limit fees are $15 if the balance is $500 or less; $29 if between $500.01 and $1000; $39 if over $1000. Over the past three years, MBNA has emerged as a market leader in boosting cardholder fees, after being a fee laggard for most of the 90s.
I LIKE THIS PART---->The nation's second largest issuer, and leading "super-prime" credit card specialist, has boosted fees to a "sub-prime" level.
Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! I would say don't sweat it, unless folks are making it a habit to be late.
Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! Unless you pay online, you don't have to make a habit of paying late. They'll make the habit for you, by holding your payment until a day after it is due!
Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! And if you're close to your limit, not posting the payment and adding the late fee can make you go over your limit.
Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! You can schedule PAYMENTS days--weeks---months in ADVANCE!!!! I ALREADY HAVE MY PAYMENT SCHEDULED FOR PAY DAY---THURSDAY!!! I had to sneak another one for WEDNESDAY 12/03/03 in because that is the due date...
Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! I thought that MBNA was in the business of catering to customers whose on-time payment history are hard habits to break. Doesn't really matter though, every card issuer is doing it and making alot of money because of it. So, what is wrong with MBNA doing the same? If you pay on time it doesn't matter what the late fee is. As far as over-the-limit fees? Well, no one should ever be so close to the limit that a finance charge puts you over the limit. Especially with the high limits MBNA assigns.
Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! they delay on line payments to just like everyone else ........don't think paying on line gurantees you anything.....
Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! I guess with the use of electronic bill pay the amount of money they collect in late fees has gone down in the last few years. I know that before I started to use Yahoo! Billpay sometimes a bill would get lost in the pile of junk on my desk. Maybe once a year or so. I found always find them a day before the due date, with out time to put it in the mail. It is not like I did not have the money, but I am just not very organized. Now that I use electronic billpay this is no longer a problem. I get the bill in the mail, schedule that payment for the due date or my next payday, and shred the bill. I am sure these new systems have helped a lot of people like me avoid late fees, and therefore the CC companies are collecting less of them.
Re: Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! How do you know? Maybe overlimit fees subsidize profit-loss line items. Just a possibility, George! Doc
Re: Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! DONT PAY LATE> DONT GO OVER YOUR LIMIT>>> LOL>>> kev
Re: Re: Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! 100% PURE PROFIT as in MBNA does NOT have any "REAL" COSTS ASSOCIATED WITH GOING OVER-LIMIT...
Re: Re: Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! Ok, George, even if they incur no accounting costs, cpu time, whatever when assessing penalties, would you at least allow that their business plan is probably more complicated than that? For example, would you then call it "100% PURE PROFIT LOSS" anytime they offer a 0% BT for a stretch of several months to somebody who pays off the balance (or BTs out again) before the APR kicks in? Doc
Re: Re: Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! ...Or perhaps your suggesting that these fees somehow soften the blow for loss-items on the P/L sheet? In any event, I think some form 10K or 10Q where companies have to spill out Non interest or fee income.
Re: Re: Re: Re: Re: MBNA Raised LATE FEES AGAIN!!!!!!!! Actually, Brad, I don't like penalties either. I'm just waiting for George to respond to the puzzle I presented. George, would you call it a "100% PURE PROFIT LOSS" when they offer a 0% BT for a stretch of several months to somebody who pays off the balance before the APR kicks in? Doc
