MBNA rate increase

udydudy

Jacq123 wrote: »

I received a letter from Alliance & Leicester yesterday, the apr for my credit card is going from 14.9 to 34.9, how can they do this to us. I recently transfered a balance of £4000 from another card to this card cause it had a 0 percent on balance transfers till April 09 ...

You say your balance is 11000. is it all Balance transferred at 0%. or is only the 4000 that you BT'ed at 0%?

The 0% offer till apr 09 does not change. it is only your standard rate that they increased. Many card companies have been doing this. I would worry if you have any of the 11000 balance on standard rate then you would be paying the new 34.9 rate on that part of the balance. and any payments are taken out of the promotional rate first. Which would mean you keep paying the higher rate ountil your 0% balance is cleared first. but if everything is on BT at 0% then you do not have to worry until Apr 09.

I would suggest you call them and haggle it down. Virgin increased mine to 34.9 and I haggled it down to 18.9 even though it did not matter to me as all my balance was at 0%.

marklee1975

Can anyone help, i have closed my MBNA account after poor service time and tme again, they have now increased my interest from 19% to 34%, what can i do ?

cifpower

If you have closed it I'm not sure how it affects you? Do you mean there is a balnce on the card but you are no longer using it? That means the account is not closed.

_Andy_

They are quite entitled to increase the interest rate. You agreed to a variable rate credit agreement and the rate has varied.

james32_uk

To be a little more constructive all you can do is ring them every now and again asking for them to look at lowering your rate. It may not work but often you can get lower rates or temporary promotional rates just by asking. The rate increase does seem rather excessive!

Good luck.

marklee1975

thanks for the help, yes the account is closed but still has an outstanding amount on it, they have upped it on a review, because I have not used it for a longtime I guess but 34% give me a break!!!

cifpower

marklee1975 wrote: »

thanks for the help, yes the account is closed but still has an outstanding amount on it, they have upped it on a review, because I have not used it for a longtime I guess but 34% give me a break!!!

If there is a balance on it the account is not closed. You could telephone them and say you have been a good payer and ask them to lower your APR but its not just you who has had their interest rate upped so dramatically.

steco

I've just cancelled my MBNA gold card after receiving an interest hike from 18% to 27.5%!!...fortunately I had zero balance. I've had this card a long time so they offered a reduction to 16%! (huh?)
I cancelled out of disgust and cut the card up, and told them they were profiteering from people who could ill afford it.

boon72

simular thing with my barclaycard - 14.9% upto 22.9% sadly its got a balance so icant cancel :-( its rediculous that they can get away with it after they've been helped out.
they should be made into non profit companies as punishment and just get what they need to run.

Mozette

Well egg put up the rate on my egg money card a month or so ago, because of various mysterious 'factors' that they weren't prepared to clarify.
This month they dropped the interest on my egg visa card.
As far as I know I've not won the lotto in the meantime!
There is no rhyme or reason to it.