MBNA Lead the way

overlander

MBNA will be increasing their minimum payment to 5% from september.

Link

http://www.timesonline.co.uk/tol/money/consumer_affairs/article4321505.ece

This could hurt a lot of people.

bethanyrayne

MBNA would have to do that to keep abreast with their interest rate hikes. No suprise!

nomoneytoday

That's a good thing. It means debts get paid quicker, and you end up paying less interest

Bismarck

funny that...my letter re MBNA says the minimum is going up to the greater of

£25

or

charges + interest +£5

no mention of 5% anywhere.....

I can see that having a minimum payment of interest plus £5 could be nasty but that's their game....

clio

So if your min payment is £25 allready does this mean it,s now going to be 5%% boy doesnt the day get worse and worse for us poor ikkle customers lol..

PS just looked at my letter and it says.... Changes from October 2008
If your balance is £25 or more your min payment will be whichever is greater of £25 or any charges for PPI,
interest and default charges plus £5 well i dont have any protection so does that mean i,m going to be paying 5%
now!!

Bismarck

clio wrote: »

So if your min payment is £25 allready does this mean it,s now going to be 5%% boy doesnt the day get worse and worse for us poor ikkle customers lol..

PS just looked at my letter and it says.... Changes from October 2008
If your balance is £25 or more your min payment will be whichever is greater of £25 or any charges for PPI,
interest and default charges plus £5 well i dont have any protection so does that mean i,m going to be paying 5%
now!!

my point is that the 5% will relate to some customers not others...if you've not heard by now, it won't be affecting you. The usual requirement is 30 days or so notice and my letter was sent in June for the change in October so they seem to be giving plenty of notice to those affected -whether it's bad news or not

udydudy

overlander wrote: »

MBNA will be increasing their minimum payment to 5% from september.
This could hurt a lot of people.

Not sure the new terms and condition receieved today by the OH says

"if the balance shown on your statement is more than £10, it will be whichever is the least of 5% of the statement balance or the total of any payment protection cover charges, interest, handling fees and default charges plus £5, provided that it will always be atleast £10."

So since it says "least of", it would mean that it would never be more than 5% and less than £10.

So someone who sets up direct debit(which would ensure timely payment), does not go over credit limit and does not incur any charges would be still paying £10 per month.

udydudy

Bismarck wrote: »

funny that...my letter re MBNA says the minimum is going up to the greater of £25 or charges + interest +£5

no mention of 5% anywhere.....

I can see that having a minimum payment of interest plus £5 could be nasty but that's their game....

Are you sure it says "greater of"? the letter from MBNA that my OH received says "least of"

udydudy

Bismarck wrote: »

funny that...my letter re MBNA says the minimum is going up to the greater of £25 or charges + interest +£5

no mention of 5% anywhere.....

I can see that having a minimum payment of interest plus £5 could be nasty but that's their game....

Are you sure it says "Greater of", my OH received a letter today whioch says "least of" I receive the same from virgin.

gazza975526570

nomoneytoday wrote: »

That's a good thing. It means debts get paid quicker, and you end up paying less interest

Not a good thing to stooze though;)

hostman

Good job I paid my balance off this month from my MBNA card.

But I haven't received a letter from them informing me of the increase, so maybe its not all accounts?