MBNA rate increase

VikingWarrior

MBNA are trying to bully me into paying more money. My APR has risen from 12.9% to 24.9% in one month. I would love to tell then where to stick it but I can't get any other credit.

I have complained twice but they are not interested.

Any suggestions?

skyrider007

It seems like a normal practice for MBNA to increase people's APR without any good reason these days. The best thing you can do is cancel the card and apply for a new one with lower APR.

VikingWarrior

The only credit I can get at the moment is a £2000 loan at 69.9%

skyrider007

VikingWarrior wrote: »

The only credit I can get at the moment is a £2000 loan at 69.9%

70%!!!!!!!!!!!!!!!! Do not get it! I'd rather pay MBNA's 25%. Have you considered a personal loan or CC from your bank?

Dithering_Dad

I think the time may have come to start looking at making major cutbacks (if you haven't already) and blitzing that card. The days of cheap credit are well and truly over and perhaps that's not such a bad thing.

When I had a load of debt on credit cards, I paid it off by a combination of money saving (cheaper gas/electric, better phone deals, cheaper insurance, etc. - all thru this site's recommendations) and increasing my income by doing overtime and taking on a pub job at the weekend. I was knackered, but I got rid of that card debt (£12k at its worst point) and all the hard work made me realise the value of money!

It also meant that once the debt was gone, I could take a risk and try contracting. I've never looked back! I am currently blitzing my mortgage with an aim to become totally debt free within the next 5 years.

It's hard, but you really need to stop complaining about how much your credit costs, and instead start moving towards a life without credit.

Good Luck!

NickX

It certainly does appear to be standard practice for MBNA to increase the Standard Variable Rate to an extortionate level at the moment.

I suspect this is an affect of the Credit Crunch just as Barclaycard are reacting by reducing people's limits left, right and centre.

Just to re-iterate do not touch a loan with 69.9% APR with a bargepole. I really doubt MBNA will push their rates that high.

Can you get another Credit Card, preferably with a nice 0% Balance Transfer promotion ?

Yolko

Have you called MBNA about the rate rise?

Call them and ask about the procedure to close your account - do you need to do it in writing or call them on a special number? They will put you through to the retentions department who will ask why you'd want to close your account. Tell them that you find the rate rise offensive and can only conclude that they don't want you to stay with them.

I did the same, though they may handle your account differently if they know that you might not actually be able to follow through with your claim that you're going to pay off the balance and close the account: if they know you can't, I guess they have no incentive to change the rate.

My standard rate of 15-17% shot up to 32-34%, and they changed it to 9.9% when I called last month. Since then, they have written with a significant limit increase (£8k to £11k) and a 9 month 0% balance transfer rate.

Julesmat50

Have any other Virgin (MBNA) CC holders received letters this morning warning that the interest on the card is going up to 29.9%?!!! I'm currently paying 14.9% on this card, so this is a whacking 100% increase :mad:

I've also just been advised that my Egg Card is also increasing it's rate to 21.9% from 17.9% with a letter that had an "if you don't like it you can always close the account!" air to it.

It appears that the banks having paid the penalty for being greedy, are now forcing their customers to make up the losses. If it were possible then I'd ditch these cards in favour of others with a better interest rate, but as I was struggling to reduce the balances on these cards anyway, (as my wage varies so much from week to week), I'm very unlikely to be accepted for any new cards. I'm very tempted to just say "sod it" and just go bankrupt and stuff their money!

Can anyone suggest any other options? I don't own property or anything like that, so I've no assets that I could use to raise the money to just pay these greedy barstewards off.

skyrider007

This is within their Ts&Cs. You should give them a ring and ask whether they could bring down the interest rate, if not then take your business elsewhere and cancel the card.

Julesmat50

Thanks Skyrider007, but as I mentioned in my post, I'm unlikely to be accepted for any other cards, so can't take the business elsewhere - believe me, I've tried already with some of the cards that Martin has recommended only to be refused completely - not even offered another product.

nzseries1

Wow, if I had a penny for every time someone mentioned their MBNA interest rate was going up by a ton!

(Sorry, I'm not taking the !!!!, I just think it's astonishing how many people this is happening to!)