MBNA rate increase

_Andy_

clio wrote: »

one comming along answering your post saying "tuff"

What would you prefer? That I respond to the OP saying "yes that's DISGUSTING!!! How DARE THEY!!!" or tell them that MBNA isn't entitled to?

The OP has asked for a solution which I have presented - it's not like there's a variety of choices anyway.

clio

We are all aware they are allowed to do it, the point is i would hate it to happen to me so why not be a little easy in your reply, 16% can tip people over the edge.They [mbna ] are the kings off rip offs..

_Andy_

My reply wasn't intended to be harsh or rude, I'm just being to the point - the OP has asked for information which I've supplied.
I agree - it's not a cheap rate and doesn't offer good value which is why I hope, if the OP isn't able to get them to budge, they move to a company which wants the business.

clio

Andy
It was def not rude it was imo as they say in russia "Tuffski" anyways i would like to understand more on how they operate in deciding who gets the higher apr.

_Andy_

clio wrote: »

Andy
It was def not rude it was imo as they say in russia "Tuffski" anyways i would like to understand more on how they operate in deciding who gets the higher apr.

Agreed - the time it happened to me it was on a card that at the time had a minimal balance (c.£100) so I'm not sure what the rationale was - as I don't use it much perhaps it was to encourage me to close it. No idea!

sdooley

They are entitled to up your rate quite legally.

30% is a scandalous rate but it's roughly the same as I remember my parents getting briefly hit with in the last recession.

If you 'may be in a position to clear it shortly' you should transfer all savings you do have to get it down as far as you can even if you can't clear it all - otherwise any attempt to save up the balance you'll be caught by the ever rising interest.

If you can transfer anything left to another card, even at 20% if you have to, do so and then contact them - they may offer you a 0% deal if you transfer back again - obviously though you'd have to know you have a way of clearing that debt before getting hit again.

The other alternative is to ring them up and ask them to put the rate down, say all you have said.

pdrs

AlBucks wrote: »

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. ?

Aplogies if this doesn't make sense/look right, but this is my first post here.

I'm afraid they can. I've had exactly the same experience. When I opened my Virgin cc account the interest rate was 10.9%. A few years ago I got a letter informing me that they were increasing my rate to 15.9%. After I complained they cancelled the increase but said that they reserved the right to increase the rate again in the future, and a couple of years ago they increased the rate to 17.9%. Last month I got a letter telling me that they are increasing the rate to 27.9%:mad:.

I'm getting my own back. I've reduced the balance to zero (ensuring there is no residual interest) and I've just done a £4000 balance transfer to my bank account at 0% until 11/5/09. Come next April I'll either clear the balance or do a 0% transfer to another card and then either close the Virgin account, or keep it for when they do another 0% bank transfer offer. Either way their greed has ensured that I'll never pay them any more interest. Thanks Martin :money:

Paul_Herring

clio wrote: »

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

(1+monthly_rate)^12-1

Or 36%.

officeman_2

I agree - call them. With my MBNA card they slowly increased the rate from 10-12% to 18-19%, then hiked it to 34%. I called and asked them matter-of-factly how I should go about closing my account, and where I should return the destroyed card to.

They put me through to someone 'who could help', who obviously asked why I wanted to close the account. I told them that I was insulted by a 34% interest rate because it sent a clear message that they didn't want me to keep my account. They reduced their rate to 9.9%.

clio

Even worse that i thought 36% phweeeeewwwww...