A Little too Much Tarnish on MBNA's Precious Metal
Written: Feb 01 '04
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Pros: High cash advance limit; Extra services that come with Platinum
Cons: Customer service issues; Automatic adjustments of limits and interest rates
The Bottom Line: MBNA Platinum offers a few nice perks, but the tarnish is a little too thick on this metal to allow it to shine.
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| Bryan_Carey's Full Review: MBNA Platinum Plus (Mastercard and Visa) |
MBNA America is a full- service financial operation, offering mortgages, certificates of deposit, IRA accounts, home equity loans, money market accounts, and other financial services. But among all its product offerings, the one that consumers around the United States know best is MBNA’s credit card division. With MBNA, you can select a credit card that supports charity, one that earns rewards for travel, one that shows your support for your favorite sports team, and many more.
I have been a customer of MBNA for about 6 years running. During that time, I have had some frustrations with this company along with a small degree of satisfaction. I have held a few different MBNA credit cards during my six years. Today, I’m going to review the MBNA Platinum Plus, one of MBNA’s “premium” credit cards.
Features of This Credit Card:
Platinum Plus offers many of the usual services that customers expect from a Master Card or Visa issuer. Here are some of the basics:
Internet Access- Account information can be accessed 24 hours per day through mbnanetaccess.com. Here, you can view your account activity, dispute a balance, make payments, etc.
Cash Access- Cash can be obtained at most any bank, just like with other credit cards. Once you have a PIN number, you can also access cash at most ATM machines and at Western Union offices.
Balance Transfers- If you have other, high- interest debt that you would like to consolidate, MBNA will provide you with convenience checks which you can write- out to the other debtor. The balance will then appear on your MBNA account. If you don’t have any convenience checks and would like to make a transfer, you can call MBNA directly and conduct the transaction over the phone.
Insurance- MBNA offers a standard amount of accident insurance on all of its cards, with the option to increase this coverage if a customer sees it fit.
What do I get With Platinum Plus?:
The services listed above are standard with all MBNA accounts. The Platinum Plus account goes a step further by offering other services and special coverages. Among these are:
Purchase Assurance- This benefit insures your purchases, made with your Platinum Plus account, if they are stolen or damaged within 90 days of purchase. MBNA will give you back the amount of your purchase, multiplied by two, if either damage or theft occurs (up to a limit, of course).
Extended Warranty- MBNA doubles the standard manufacturers and/or store warranty for up to one year, if the purchase is made with a Platinum Plus credit card.
Travel Assistance- MBNA provides travelers with a checklist of requirements that are needed for international travel, like passports, immunization records, etc.
Medical protection- If you’re traveling and need medical attention or a refill on a prescription, MBNA provides a special support line that you can call to get information on the available medical treatment available in your area of travel.
Legal Referral Service- This is also a service intended for travelers. It helps customers who might find themselves in a foreign country and in need of assistance from a foreign embassy.
Fees/Interest Rates:
MBNA doesn’t charge an annual fee on most of its cards. But they easily make up for this with the various fees that are charged against the customer for “bad” behavior. For example, if a payment is received late, you can expect to get hit with a late fee of about $25 to $35. If your credit card goes over the limit, you can expect to pay another fee between $25 and $35. Also, if you are late with a payment, MBNA will penalize you by increasing your interest rate. This can easily result in an interest rate of 24 percent or more. The rate will not decline until you have established your account and kept the payments up to date for at least six months.
MBNA commonly offers “teaser” interest rates to get new cardholders to sign up. This is a common practice among credit card issuers. The initial offer will give you, the customer, a low introductory rate if you transfer a balance from another credit card. After six months, the introductory period will expire and your interest rate will increase. The introductory rate and the rate after six months varies from one offer to the next, but you can expect them to be between 4 and 8 percent for the introductory rate and between 14 and 20 percent for the final rate.
Customer Service:
MBNA provides 24 hour, seven day per week live customer support. There are separate toll- free numbers to call, depending on your need (balance transfer, customer satisfaction, overseas assistance, etc.). The main phone number is listed on the back of your credit card and this number can always be used. Even if the rep who answers the phone cannot help you immediately, he/she can transfer you to the appropriate party.
Final Thoughts:
MBNA is a well- known credit card company with a generous hand when it comes to issuing credit. This company has grown exponentially over the past 10 to 15 years and is now the largest credit card issuer in the United States. Advertisements for MBNA pop up all over the place- on the internet, in magazines, in the mail, on billboards, and more. Even though I am already a cardholder, not a week goes by that I don’t get an offer from this company or see an advertisement to apply for a credit card.
I have utilized dozens of credit cards in my days. From stores cards (like Sears and J.C. Penney) to bank- issued cards (First USA, Capital One, etc.) to other cards (American Express, Discover, Diners Club), I have carried all sorts of different plastic in my pocket at one time or another. And with all this experience, the card I have held the longest and the one whose customer service department I have dealt with the most is MBNA. Thanks to a credit card balance that a relative of mine owes (under my name) and thanks to my own dealings with MBNA, I have gotten to know some of the customer service personnel at MBNA on a first- name basis.
MBNA customer service and its credit card services in general have proven themselves to be both helpful and annoying. On the positive side, MBNA has come through for me in a pinch. The high credit card limit that I once enjoyed (it was around $26,000, but I don’t have it anymore, which I will get to later) includes 100% cash advance as part of the limit. That means that, unlike other credit cards, the cash advance limit is equal to the total limit on the card. Thus, I feel very safe with this credit card in my wallet. If I find myself in a bind, I know that I can get cash advances of tens of thousands of dollars. I have had some situations like this pop up in the past, and I was able to go to a local bank, call MBNA service personnel on the phone, and get my money in a matter of minutes.
Customer service, however, has proven to be a mixed bag of pleasant and downright nasty encounters. Most of the time, MBNA personnel have been helpful. I have spoken on the phone with MBNA many more times over the past six years than I would like to because one of my relatives has a card in my name and has refused to make payments. Overall, I would rate the customer service department with a grade of D+ to C-. Like I said, most of the time they are fine and they try to help. But other times, I will get someone on the phone who is a complete jerk- o-f who will not only fail to help me out, but will even get short tempered with my situation. I have even had some customer service reps hang up on me because they got tired of my complaining about the card and its policies. Like I said, the majority of instances are fairly pleasant. But it’s the negative customer service encounters that stand out in one’s mind.
One policy of MBNA that I don’t particularly care for is the automatic adjustment of your credit limit and interest rate. Unbeknownst to the cardholder, the rate of interest can increase and the credit limit can decrease without notice. MBNA keeps track of all accounts and an individual’s overall credit rating and debt load. If other debt levels get too high or if payments have been found to be slow, MBNA will respond by decreasing the cardholder’s credit limit (this can also happen in reverse, if your credit situation is positive). This bothers me for several reasons. First of all, it can happen all at once, without the cardholder’s knowledge. This can really put a damper on things if you had made previous plans to use your credit card’s available credit for a major purchase. Second, this can happen to a cardholder even though his/her record with MBNA is squeaky clean because MBNA looks at your entire debt load when this occurs, not just your debt and payment history with MBNA. Third, this adjustment doesn’t take into account how much income you make. It only looks at your credit history.
I was upgraded automatically to “Platinum Plus” status a few years ago. I was told that my APR would be reduced by a point or two and I would be able to transfer other debt balances to this account without paying any fees. This was all true, and I took advantage of the offers. But then, as a result of my relative not paying her bills, my balance was suddenly cut in half. Now, I no longer have the protected feeling that came with the high credit limit of the past. I called MBNA and tried to reason with them, explaining that this other debt wasn’t really my responsibility and that the lack of timely payments shouldn’t be held against me. They knew that the bad debt wasn’t really mine, but they would not make any amends. They refused to increase my credit limit back to where it was previously. And on at least one occasion, the customer service rep hung up the phone on me.
MBNA Platinum Plus does offer a few extra perks, like the travel and medical coverage, even though you are unlikely to ever use them. The company personnel can be rude at times, too, and some of their actions make me question the overall ethics of the company. But even though I’m not going to recommend the Platinum Plus Credit card in this review, it’s not likely that I will terminate my account with MBNA either. Why? Because I still have a very large cash advance limit that I like to carry around because of the security it brings (I paid down my balance after they reduced my limit and now I have a large amount of open credit for cash advances). With other credit cards, like the American Express card I currently have in my pocket, the cash advance is only a fraction of the total credit limit.
So, overall, I’m giving MBNA Platinum Plus a thumbs- down because of its automatic adjusting of account limits and interest rates and because of its sometimes lousy customer service department. Other credit cards have similar flaws, and MBNA is not alone in its poor record. But for a company the size of MBNA, I expect something a little better than this. Unless you can obtain an incredible introductory deal (or unless you’re hooked because of the large cash advance limit, like I am), I recommend avoiding MBNA. You never know what can happen to you, when you hold this credit card.
Recommended:
No
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