MBNA forcing 30% interest per annum

mosschops

Anybody out there with MBNA Just had my credit limit reduced, and now its maxed, and the interest rate RAISED BY 1% per month. Used to be a Credit Card tart, and now after MBNA fiasco want to get rid. Any Ideas?

Moggles_2

Suggest you think about shuffling your cards again then. The best solution, after all, is to vote with your feet.

Which credit cards - besides MBNA - do you have at the mo?

A_fiend_for_life

As moggles says shuffle. Explain to them that you think the interest rate is extortionate and way above advertised typical rates. What was the typical APR when you took out the card? Are they still advertising those rates? If not what are their rates on other cards?

HBOS did the same to me a couple of years ago and I got it down from 28% to 20% mainly by comparing them to store cards and that I would expect a more competitive rate from such a company. I would be inclined to phone them up straight away explaining your really not happy with such an extortionate hike and haggle, take what you can get to reduce the interest while you transfer, ideally back to your original rate. It sounds like they are expecting that you will complain and will offer about 4% or 6% off. Get what you can off on the phone call and back it up with a letter of complaint.

seanp2007

I have a MBNA Virgin credit card. My interest has been increased over the last few months from 15.9% APR to 35%APR. I cannot make the payments anymore and have been in contact with CSCS to try and solve this. After 3 months of waiting and re submitting income and expenditure reports they still have no decision on my case to lower the interest. I keep banging my head against a brick wall. I received a letter today saying im being reported to the credit reference agencies about this

What am i supposed to do next as today i have been refused for a new credit card so cant shuffle the debt.

maz1964

Hello all
mbna have been my worst nightmare and ive told them this on the phone!

finally since sending them my initial letter and income and expense sheet early part of the year, im now on a plan, being cross on the phone and after letter of harrasment and finally a complaint letter , they have finally listened,

so seanp2007 - i suggest you send a Formal Complaint to mbna, advising them of your initial information supplied your contact with cccs and the increase on higher interest, and your desire to pay something to them, did you do a pro rata payment offer? i did mine as per the national debtline site, very handy to do and send that with your letter, i would start paying the offer and send it each month, or decide a date you will pay them and stick to that until a plan is set up for you, and they have to send you a reply within 8 weeks anyway as its a compalint, i would also ensure you send it recorded delivery signed for its about 1.08 i normally pay, maybe more if you have a lot of info to send. You can then track when mbna get the letter online with royal mail site.

check out the national debtline site, i used it and its been good.

why arent cccs chasing up mbna for you? by the way are you still going to go with them?

anyway shout if you need any more info

Ciao to all MAZ

A_fiend_for_life

In about 2003/4 when interest rates were low the OFT ruled that interest rates were far too high and suggested around 10% was a reasonable interest rate given the interest rates at that time. (Correct me if I am wrong)

Perhaps the OFT should be looking at this again.

It might not do much in the short term but I think anyone experiencing this problem should also consider complaining to the OFT and raising the awareness of this issue.

Cranston_2

For those struggling with high interest rates I would like to suggest you try applying for one of Citibank's credit cards. Thier APR's are around 17% not the greatest but far better then the 30% plus numbers being quoted on this forum and they seem to give out credit cards easier then many providers.

Locke

I closed my account with MBNA on Wednesday, awful company.

clio

Are citi bank the underwriters for the Egg cards ??

NickX

clio wrote: »

Are citi bank the underwriters for the Egg cards ??

CitiBank do indeed own Egg.

They puchased them from Prudential a couple of years ago, and earlier this year took the decision to close the accounts of 161,000 customers.

Moggles_2

Cranston wrote: »

For those struggling with high interest rates I would like to suggest you try applying for one of Citibank's credit cards. Their APRs are around 17% not the greatest but far better then the 30% plus numbers being quoted on this forum and they seem to give out credit cards easier then many providers.

Unfortunately, Citi is not known for generous credit limits.

Also, this lender operates a rate-for-risk policy (in common with Barclaycard and Capital One). This means that Citi reserves the right to issue the credit card it deems most suitable from its range. In the worst cases you can be sent a totally different & unsuitable card, leaving you with a wasted search on your credit file. Judging from posts to this board, this happens frequently, so it's important to consider carefully whether you’ve a realistic chance of being accepted. IMO, this practice should be banned, but unfortunately we're stuck with it for the forseeable.