MBNA rate increase

pb3

steco wrote: »

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.

Cynic that I am, I believe this is a crafty new method by the CC companies of getting rid of "non performing" accounts.

i guess they've learnt the lesson of Egg's PR disaster a few months back when they chopped 10% or so of their accounts.

This is a sneakier way. And given your response i guess it has worked brilliantly

rodent

steco wrote: »

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.

Count yourself lucky mine just went up to 32.4%

Cancel them ....hell no !!! just make sure i never go over my 0% period by even a day ....on any of the several cards i hold with them !

They give lots of 0% deals ....and now they are hoping to get a few quid back from those who use cards irresponsibly (unfortunately the very people who cant afford crazy rates like this )

So learn the rules and play by them.

The Rodent

anovic

I was shocked by the increase in APR on my card too. They must need the extra cash to finance all the junk mail that they keep sending. If I cancel I can be sure it won't be long before I get my next invitation from MBNA and their next 0% offer.

_Andy_

If you sign up to what is a variable rate credit agreement you can't express shock when the rate varies. Of course they're profiteering - they're no a charity, they're there to make money (shock!)

Jon2263

I got a letter a while ago saying that the rate had gone up to 26% and when I complained they lowered it to 19.9%

I think the problem is Andy, not that it has gone up, but that it has lept by an enormous and varying amount. There seems to be no logic to the amount, purely that they are trying to capture as much interest as possible, this is clearly shown by their willingness to reduce the rate if required to retain the customer.

clio

Is there any card thats not a variable rate ??...........

_Andy_

clio wrote: »

Is there any card thats not a variable rate ??...........

Not as standard (short-term BT not withstanding) - my point is that it's a risk you take when you start the agreement. It's no good moaning about it if/when it does go up as it was a risk you took and something you need to take responsibility for.

clio

So Andy you cannot have a CC with out this variable rate then??

NickX

clio wrote: »

Is there any card thats not a variable rate ??...........

Yes, get a Life of Balance (LOB) Balance Transfer card. Transfer your existing balances to it and NEVER spend on the card again.

You have then got a fixed rate loan, and they can't mess with that if its stated Life of Balance.

_Andy_

clio wrote: »

So Andy you cannot have a CC with out this variable rate then??

As I alluded to earlier, the only way to avoid the rate varying is to get balance transfer deal, which may be 0%, or a life time rate.