MBNA credit card hell

misstree_2 · 19 January 2008 at 4:31PM

Hi everyone,

I have a major problem with my MBNA credit card. I have been with them for a few years and have always made my payments on time. Before them, I was Royal Bank of Scotland but for some reason my account was transferred to MBNA ..still not really sure why.

Anyway, my APR is about 17.5% and I pay monthly minimum payments of approx £120 on a balance of just under £9000. I rarely spend on this card, as I have been finding it increasingly difficult to meet the payments, but my internet gets taken out from it every month.

Last month, my statement arrived and I saw that my minimum payment had doubled. I rang them immediately assuming that it was a mistake. I was told that it was correct and when I asked for more info, I was told that the APR had increased to 34.9%!! I was absolutley gobsmacked and tried to find out why but it was like asking a politician questions, as the responses I was given was pathetic and repetitive - basically the best one he could come up with was...interest is variable you know??! :mad:
I then preceeded to explain that there was no way that I could afford to meet these payments and could he help. He transferred me to somewhere..the interest dept I think. Sorry for sounding vague but I was confused as hell, and wherever he did send me was the wrong place anyway!

I spoke to this lovely lady, who actually had more sense. I explained everything and told her how confused I was feeling but even she tried the 'interest is variable' speech on me! I very calmly explained that I understood that, but to actually double??
She spoke to someone to see if they could reduce the interest, as I was a long term customer - they said no. She then said that she would speak to her manager in the hope that he could help by putting the interest back to what it was....but of course, being just a few days before Christmas he wasn't at the office, so she would send him an email with all the info I had given her. She said that I should pay as much as I could afford to that month and if things hadn't lowered by my Jan statement then to get back in touch, and they could probably arrange for me to have some sort of reduced payment plan - but of course, it will be a black mark on my credit report - which I don't need, as it isn't fantastic as it is!
I made a payment of just under half the amount they wanted.

Yesterday I received my statment asking for £368!!:eek: There is absolutly no way I can pay this and certainly not every month either!
Along with that, I recieved another letter from a place called 'Risk Management Alternatives'?? stating that MBNA had got in touch with them and if I don't pay the remainder of December's minimum payment, then I'll have further action taken against me!

I am so very very worried about this. I cannot believe that MBNA have not even acknowledged that I rang them and explained my situation, let alone have offered to help me. I plan to write to the both of these companys, but will be away from home next week, and don't know if I can get it down before I leave.

Can anyone please offer me any advice? I thought by being honest with them straight away, that would help. I also told them that in a few months time, I am hoping to pay most of..if not all of the balance off, as I will be selling a property.

Apologies for this long post, but I really am beside myself with it all.

Dylanwing · 19 January 2008 at 5:22PM

If the debt is being paid off in a few Months, I would be inclined to pay what you can afford, and write setting out repayment proposals and estimating a timescale. My experience is that Call Centre staff are running to a script, don't seem to have Managers willing to deal with difficult calls, and so you just get bland and unhelpful answers. Putting it in writing means that they should answer questions properly.
It might be worth talking to the CAB and getting advice regarding the doubling of interest rates. They may have such rights in the T&C's, but there are Laws about unfair contract terms, so it is worth checking out.
Good luck.

MUM40 · 19 January 2008 at 5:27PM

i had a very bag time when i was struggling with my payments with MBNA , and i was crying on the phone, and they were not very sympathic at all. just glad that i have now finished my cc with them.
Can I still try to claim any charges from them ?

MABLE · 19 January 2008 at 7:06PM

MUM40 wrote: »

i had a very bag time when i was struggling with my payments with MBNA , and i was crying on the phone, and they were not very sympathic at all. just glad that i have now finished my cc with them.
Can I still try to claim any charges from them ?

Unfortunately the advisors are in a difficult position. If they start to show sympathy because the apr has been increased they are being disloyal to their employers. I know with the job I do as much as I would like to give the compensation the customer is asking I have to follow the company line.

calibrax · 19 January 2008 at 7:39PM

Had a similar issue with Egg... I was paying minimum payments on a £12k balance and they put the interest up from 17.9% to 21.9% even though I'd never missed a payment... I called them up and managed to get them to cancel the card and move the balance to a five year loan on a 14% APR, which works out at around £276 per month. So I save money on interest, the payments are less than my old minimum payment was, and the debt will be cleared in 5 years.

Dylanwing · 20 January 2008 at 6:08PM

Can I still try to claim any charges from them ?

All the more reason to do it. I have had hassle with Sainsburys, so I followed the letters, made my claim and they offered to refund all the payments over the £12 OFT fee without much hassle. £125 for little effort, and I didn't even send them £10 for the statements!
It's a great feeling getting cash back from them, and I spend the £25 on beer and a curry to celebrate.

misstree_2 · 20 January 2008 at 6:57PM

Thanks for the replies everyone. I'm not going away this week now so will have more time to deal with this properly.
I agree that writing a letter should get me a more positive response and hopefully get some questions answered. I think I will make a proposal to them with what I am more afforadbly able to pay. I know this is going to go against me on credit files, but that's unadvoidable. I only wish that I could do a balance transfer but I've gotten turned down the last couple of times when I've tried to do this, so there seems no hope for me with that.
I am definately very concerned that a company can double an APR, surely that can't be right? I will definately be wanting a written answer regarding this.

speedbird1973 · 20 January 2008 at 7:16PM

Have you tried an 11.9% life of balance with the co-op?

doingwhatican · 20 January 2008 at 11:44PM

misstree - can I ask if your current card had expired. I used to have a large balance on my mbna card and I just made the minimum payments. I then noticed that my APR had jumped to something like 29% so I rang them and because my current card had expired so had my deal. I managed to get my card reinstated and the APR reduced. They did seem pretty hard nosed about it all. I asked if I could make a payment over the phone and the CS girl sounded a bit gobsmacked when I asked to pay the balance in full with my debit card ( I had pre arranged the funding ).
I do think they try to take advantage when they realise that you're never going to manage to pay it off.

misstree_2 · 22 January 2008 at 1:42AM

doingwhatican wrote: »

misstree - can I ask if your current card had expired. I used to have a large balance on my mbna card and I just made the minimum payments. I then noticed that my APR had jumped to something like 29% so I rang them and because my current card had expired so had my deal. I managed to get my card reinstated and the APR reduced. They did seem pretty hard nosed about it all. I asked if I could make a payment over the phone and the CS girl sounded a bit gobsmacked when I asked to pay the balance in full with my debit card ( I had pre arranged the funding ).
I do think they try to take advantage when they realise that you're never going to manage to pay it off.

Hi, no it doesn't expire until July of this year. I have always paid the card on time and never missed any payments - although it is usally just the minimum that I do pay.

speedbird1973 - No I haven't tried that one. The last one I tried applying for was Mint..a few months ago, and they turned me down.
I would be tempted to apply for a card with a good lifetime balance transfer rate, but cos of what's on my file (Experian seems to be the one that kills it all for me), I don't think I'll have any luck.
I was recently sent an application through the post for Goldfish. They are offering 4.9% til 2011 and 12.9% on all other purchases.

If anyone knows of any card (that hasn't got an extortionate APR rate), which I may have luck with, even though I have a bit of a cloudy credit file then please let me know.

dollarjon · 22 January 2008 at 3:05AM

Sorry to hear that misstree - the same thing happened to me it was a virgin mbna card i had £5000 on it the rate was 14.9% and they all of a sudden upped it to 29.9% they gave me a months notice..... By which time i had transfered it to another card.

MBNA credit card hell

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