MBNA rate increase

jimbo26

This isn't big news. MBNA are notorious for this, many people shift a large amount of debt to MBNA enticed by the 0% deal and low repayment. Once the deal is over the interest rate shoots up to sub prime levels. People with a good credit history can shift the balance again, but the poor sods who can't get another card end having every last penny squeezed out of them.

How do you think MBNA can afford to run the 0% deals?

If you are moving your debt to MBNA be very careful.

good_lady

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.

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting%20post%20http://forums.moneysavingexpert.com/showpost.html?p=8030467"][/EMAIL]

Money_Man

You should make every effort to try and maintain some sort of payment to them. You need to call them and explain your circumstances again, if necessary ask to speak to someone more senior, the reduced payment plan is probably your best option at present. True this will flag up as a "mark" on your credit file but this is better than you missing payments which will undoubtedly impact your availability to credit longer term.

Hope this helps, best wishes

Stageshoot

Confused!

You talk about a few days before Christmas and December Statements

Either this is an old problem from last year or there is some confusion on dates please enlighten us!

milliemonster

I wouldn't ring them again, I would only deal with this in writing now, basically MBNA are renowned for doing this, if you only make the min payments for a while, they assume you are having financial idfficulty so bump up the interest rate. I doubt very much they will reduce your interest rate at all.

Do you have any other debts?, if you can't afford to pay this I would contact them to arrange a reduced payment plan and ask them to freeze interest while you are on this, if they can't or won't do this, contact CCCS and discuss it with them, they will help you come to an arrangement with MBNA

Bismarck

VickyHurn wrote: »

Confused!

You talk about a few days before Christmas and December Statements

Either this is an old problem from last year or there is some confusion on dates please enlighten us!

some good points there, Vickyhurn.

Suggest we await clarification.

oldone_2

Something very odd here.In another thread the O.P. posted on 16.10.08 that her son is shortly to finish schooling in June '08.

Have we all entered the Twighlight Zone

MABLE

oldone wrote: »

Something very odd here.In another thread the O.P. posted on 16.10.08 that her son is shortly to finish schooling in June '08.

Have we all entered the Twighlight Zone

Does not take much to confuse me but this time I am really confused. Why is the OP taking about the December statements.

daveboy

Is it me or is the thanks button, report button and offline/online thing cut and pasted into the bottom of the post.

Chances are this is an AE so I'd leave well alone.

daveboy

CONFIRMED

Below is the original post

Click HERE