MBNA rate increase

MRSTITTLEMOUSE

I can't understand Virgin.They almost doubled my interest rate when my interest free was due to end,so I paid of the balance.I did'nt use the card except to use for smaller purchases paid off in full monthly.In a year they have reduced the interest rate to almost what it was before they increased it and almost doubled my credit limit without any prompting at all from me.This on top of offers every month for nine months BTs at 0%.I'm not gullible enough to fall into the trap of spending much on this card as I know they'll only up the interest rate again if I took up the interest free period.

Bismarck

MBNA will hang you if they can but if you can shift/shuffle your debt they seem to happily re-offer their special deals...definitely one to really keep an eye on as it will bite you hard.

Lottebear

Yes I have had a letter, I have decided to switch to another 0%, I will close the Virgin account.

Richard019

MRSTITTLEMOUSE wrote: »

I can't understand Virgin.They almost doubled my interest rate when my interest free was due to end,so I paid of the balance.

In fairness it's not difficult to understand, you're just crediting too many people with being as sensible as you are when it comes to using these 0% promotions. Draw people in with a low rate, let them build up a debt they can't repay in one go, then jack up the interest. Steady money.

Bismarck

Richard019 wrote: »

In fairness it's not difficult to understand, you're just crediting too many people with being as sensible as you are when it comes to using these 0% promotions. Draw people in with a low rate, let them build up a debt they can't repay in one go, then jack up the interest. Steady money.

isn't the sneakiest part the low repayment amounts so the capital is largely untouched by the time they get to throw the monster rates at you? a stoozers paradise but a debtors hell...

AlBucks

I've had a MBNA WWF card for about 3 years. Limit is £8800. I've never missed any payments. Recently I've used the card for some serious spending but it's always been within its limit.
About 2 months ago I received a letter from MBNA saying that they were increasing the standard monthly rates from 1.2408% to a whopping 2.5292%.
I'm assuming that they're quite entitled to do that legally.
Luckily in a few months time I might be in a position to dump them properly. Has anyone else had this problem and maybe come up with a solution to what seems to me like daylight robbery?

NickX

AlBucks wrote: »

I'm assuming that they're quite entitled to do that legally.
Luckily in a few months time I might be in a position to dump them properly. Has anyone else had this problem and maybe come up with a solution to what seems to me like daylight robbery?

Yes they can do this legally.

However there are many reports on here of people having their increases quashed by phoning up and explaining that they are not happy with the increase and are considering moving elsewhere.

_Andy_

Yes they can do it - it's a variable rate contract so they're quite entitled to vary it. I don't see how that can be construed as 'daylight robbery'. Presumably you wouldn't have an issue with them reducing the interest rate?

As has been posted above - all you can do is ring them - best scenario would be they budge on it, worse case they don't and you move on to another company.

clio

I know 1.2408 = 15.9 because thats the rate i,m on but what does
2.5292% = in apr terms?? looks around 32%

Andy how on earth can it not be construde as daylight robbery he has had his APR increased 16% or more.
they are known for this trick, as are barclaycard etc. bet you wouldnt like it happening to you and then some
one coming along answering your post saying "tuff"

_Andy_

Well MBNA attempted to increase the rate on one of my MBNA cards. I phoned up, they reduced it.
Whilst this was mildy annoying I didn't have an issue with them doing it as they are to make money and there is no cap in the credit agreement as to how much they can increase the rate by.