What happens if............

A question about : What happens if............

you apply for a card, agree a BT with them etc but do not sign the consent form when it arrives?

I have applied for MBNA card (first time customer) and they have hit me with a Ј35 transfer fee, I questioned it but got nowhere. All I want to do now is do away with them. In fact I want to do away with credit card tarting - I'm tired of being conned/misled. Barclaycard gave me Ј1200 credit limit and now MBNA have given me Ј3000 at 0% for 9 months and a Ј35 fee.

It's not worth the bother, because basically I have a card which I can't purchase on (MBNA) and my Barclaycard which can't be purchased on because I have to keep it maxed out to make it worthwhile having at all (blinding 40 quid a year interest WOW)

So if I fail to sign, can they charge me anything?

Best answers:

• But Ј3000 at 5.5% for 9 months will more than cover your Ј35 fee won't it?
• Well Ј3000 for 9months gives you a profit of Ј100 ish after tax.
  When you take into account that you have to repay a min of Ј60 per month ish then the Ј100 drops to around Ј88 ish, not exact figures.
  Take out the Ј35 charge and you make a profit of Ј53 ish.
  Better than a kick in the pants but makes it look less appetizing than first glance.
  Means you get around 2% return on your Ј3000.
  Anyone check those figures for me.
  They won't be far wrong :-[ I hope.
• You only need to repay Ј5 a month to MBNA don't you. Check your T&Cs.
• If you use your 2% repayment a month, you get about Ј83 assuming 5% AER (4% net).
  Quote:
• Let me guess, David, last name "Ruleof"?
  So that's 98% of Ј3,000 = Ј2940 borrowed plus Ј35 fee = Ј2975.
  Ј2940 on deposit for 1 month +28days
  Ј2900 remaining after first repayment, then [at months]
  Ј2895 [4], Ј2890 [5], Ј2885 [6], Ј2880 [7], Ј2875 [8] and paid off at month 9.
  So you have an average oustanding balance of
  Ј2875 x [9/12] + Ј5 x [(8 + 7 + 6 + 5 !+ 4 + 3)/12] + Ј40 x [2/12] = Ј2156.25 + Ј13.75 + Ј6.67 = Ј2176.67
  4% of Ј2176.67 = Ј87.08 less Ј35 != Ј52 pheww
• Does that mean my rough figure of Ј53 was quite close to the actual.
  I am impressed
• Yes John. Its then Ј5 per month after that.